A Scunthorpe convenience store operator has raised concerns about the conduct of a digital payments provider after more than £160 from a customer transaction was withheld following a card refusal earlier this month.
Retailer left out of pocket after transaction declined
Paul Thurairajah, who runs the Ashby Mini Market in Scunthorpe, says he carried out a sale for in excess of £160 in early August. According to the retailer, the payment was subsequently denied by his contracted provider, Dojo, and the funds were retained by the company, leaving the shop temporarily out of pocket.
The incident has prompted Mr Thurairajah to raise questions about the terms of service and the procedures Dojo uses when it decides to withhold or refuse payments. He said he has been using Dojo’s card services since 2021 and contacted the company multiple times in the weeks after the transaction to seek a resolution.
Contract clauses and the response from Dojo
Dojo told industry press that it is reviewing the specific case but declined to disclose details of individual customer matters. The company pointed to the terms of its user agreement which, it said, allows it in certain circumstances to hold, delay or refuse payments.
“We’re looking into this case, though we cannot disclose individual customer matters. There are some circumstances where a payment may need to be held, delayed or refused. These include (but not limited to) situations where we believe a transaction may be fraudulent, falls outside the ordinary course of a customer’s business, or does not meet the relevant PCI DSS obligations.”
Dojo also highlighted contractual provisions about charges and collections, saying merchants must pay charges in line with their agreement and that the firm may set off charges against amounts it transfers to the merchant.
Local impact and wider questions for traders
Although Mr Thurairajah told Convenience Store that the sum was not the main issue, he described feeling "confused and angry" after being referred back to his Dojo contract when seeking clarification. The case has prompted him to sound a warning to other retailers about the potential for payments to be held under the provider’s terms.
For small shops operating on tight margins, an unexpected withholding of several hundred pounds can disrupt cashflow, affect supplier payments and create uncertainty about how quickly funds will be released. Traders and business groups in the region often advise maintaining clear paperwork, prompt communication with providers and, where necessary, seeking advice from trading standards or payment industry ombudsmen.
- Transaction occurred in early August for more than £160.
- Merchant has used Dojo since 2021 and contacted the company multiple times after the event.
- Dojo says payments may be held for suspected fraud, unusual activity or PCI DSS compliance issues.
Timeline
| Event | Date / detail |
|---|---|
| Initial transaction | Early August — sale for over £160 |
| Merchant contact with provider | Repeated contacts in the month following the transaction |
| Provider statement | Dojo reviewing the case; referenced contractual rights to hold payments |
The episode is a reminder of the contractual power held by payment processors and the potential consequences for front-line businesses. It also raises questions about transparency and dispute resolution processes for traders who rely on electronic payments as their primary income source.
Local business groups and trading standards bodies say merchants should keep detailed records of disputed transactions, all correspondence with providers, and consider escalating persistent issues through official complaint routes if necessary. Where sums are significant or a provider’s response is unsatisfactory, specialist advice or legal help may be warranted.
For now, Mr Thurairajah’s experience has led him to warn other local retailers to scrutinise contract terms and to be aware of the circumstances in which a payments firm may delay or withhold funds.
