Nationwide Payment Systems

Top Merchant Services Questions | Costs, Fees, POS & Payment Solutions

Get answers to the top 11 merchant services questions in 2026—fees, PCI compliance, chargebacks, and zero-fee programs like surcharging and dual pricing.

Presented by Allen Kopelman, CEO — Nationwide Payment Systems-Host of B2B Vault: The Biz2Biz Podcast

AI OVERVIEW

If you’re evaluating merchant services in 2026, here’s what matters most:

Most businesses overpay due to flat-rate pricing.

Payment aggregators (Stripe, Square, PayPal) come with risk.

PCI compliance is mandatory—not optional.

Chargebacks are rising across all industries.

“0% processing” models like dual pricing and surcharging are growing fast.

👉 Smart businesses are shifting to:

Interchange-plus pricing.

Dedicated merchant accounts

All-in-one platforms like NPSONE

Why Merchant Services Matter More Than Ever in 2026

Payments are no longer just a backend function—they’re part of your customer experience, cash flow, and profitability.

Whether you’re running:

Retail

Restaurants

B2B services

eCommerce

…your payment setup directly impacts your margins and operations.

Below are the top 11 questions business owners are asking right now 👇

How Do Merchant Services Actually Work?

Every transaction involves multiple players:

The customer’s bank (issuing bank)

The card network (Visa, Mastercard)

The payment processor

Your merchant account.

Funds typically settle in 1–2 business days, depending on your setup.

👉 The key difference?

Aggregators = shared accounts

Merchant accounts = dedicated relationship

What Are the True Costs of Payment Processing?

Most businesses pay:

2.5% to 3.5% per transaction

But that’s just the surface.

Fees can include:

Interchange (paid to banks)

Processor markup

Monthly fees

Chargeback fees

Gateway or software fees

👉 Flat-rate pricing hides these details. Interchange-plus makes them transparent.

Flat-Rate vs Interchange-Plus PricingWhich one isBetter?

Flat-Rate (Stripe, Square)

Simple

Predictable

Expensive at scale

Interchange-Plus

Transparent

Lower cost (typically 20–40% savings)

Better for growing businesses

👉 If you’re processing over $25K/month, flat-rate is usually costing you money.

What Is PCI Compliance — And Do I Need It?

Short answer: Yes, 100%.

PCI DSS ensures you’re securely handling cardholder data.

Requirements include:

Annual self-assessment

Secure systems

Data protection standards

Failure to comply can lead to:

Monthly penalties

Fines after a breach

Can I Pass Credit Card Fees to Customers?

Yes—but you have to do it correctly.

Options include:

Surcharging

Add a fee to credit card transactions!

Must follow card brand rules.

Dual Pricing

Display cash vs card price.

Increasingly popular

Cash Discount

Built into pricing model

👉 Compliance is critical here—done wrong, you can get shut down.

How Do I Handle Chargebacks?

Chargebacks happen when a customer disputes a transaction.

Common reasons:

Fraud

“I didn’t authorize this.”

Customer dissatisfaction

Best practices:

Keep signed receipts.

Use EMV (chip) transactions.

Maintain clear policies.

Respond quickly with documentation.

👉 A good processor helps you fight and win disputes.

Are There Hidden Fees I Should Watch Out For?

Yes—and this is where many businesses get burned.

Watch for:

Tiered pricing tricks

Non-qualified transaction rates

Statement fees

Batch fees

Early termination fees

👉 Always ask for a full fee breakdown before signing.

What Payment Methods Should I Accept?

In 2026, these are non-negotiable:

Tap-to-pay (NFC)

Apple Pay / Google Pay

Online payments

ACH (bank transfers)

👉 The easier you make it to pay, the faster you get paid.

Should I Use a Payment Facilitator or Merchant Account?

Payment Facilitators (Stripe, Square, PayPal)

Fast onboarding

Easy setup

Higher risk of account issues

Merchant Accounts

More stable

Better support

Built for growth

👉 If you’re doing serious volume, a merchant account wins.

What Should I Look for in a Contract?

Red flags:

3–7 year contracts

High cancellation fees

Vague pricing

Look for:

Transparency

Flexibility

Clear terms

👉 The best providers earn your business monthly—not lock you in.

What Are “0% Processing” Programs (Surcharging, Dual Pricing, Cash Discount)?

This is one of the biggest trends in payments right now.

💡 The Goal:

Reduce—or eliminate—processing costs.

Breakdown of Each Model

Surcharging

Add ~3% fee to credit card payments.

Must be registered with card brands.

Not allowed in all states

Dual Pricing

Show two prices:

Cash price

Card price

👉 Clean, transparent, and increasingly popular.

Cash Discount

Price includes discount for cash.

Card users pay full price.

“0% Processing” Programs

Combine pricing strategy + compliance.

Shift cost to card users.

Quick Comparison

Model	Who Pays Fees	Compliance Required	Best For
Surcharge	Customer (card only)	High	Retail & service
Dual Pricing	Customer (card)	Moderate	Most SMBs
Cash Discount	Customer (card indirectly)	Moderate	Retail
0% Program	Customer	Structured setup	High-volume