The Green Sheet Online Edition

November 11, 2025 • 25:11:02

What do merchants really want? Part 2

This article is the second installment of a multipart series focusing on pain points merchants are raising most urgently. Part 1of this series, we presented a portion of responses we received from payments leaders in response to our query. This article continues the conversation with a second group of executives who answer the following:

1. What payment-related challenges are your merchants talking about most often right now?
2. Are shoppers asking for faster payments or new options at the point of sale, or are other issues more pressing?
3. How do merchant concerns differ depending on their size or vertical market?
4. Beyond speed and payment options, what improvements would make the biggest difference for your merchants (e.g., lower costs, fewer disputes, easier integrations, better service)?
5. If you could name one thing merchants wish the industry would fix, what would it be?

Featured in this article are Emily Baxter, partner at RPY Innovations; Alfred “Chip” Kahn, founder and CEO of Ovation CXM; Dale S. Laszig, founder of DSL Direct LLC; Dana Sills, director of partner relations at VyaPay; fintech expert Max Sinovoi; and, in the sidebar, Allen Kopelman, CEO of Nationwide Payment Systems, Street SmartsSM columnist and member of The Green Sheet Advisory Board.

1. What payment-related challenges are your merchants talking about most often right now?

Alfred "Chip" Kahn, founder and CEO of Ovation CXM, has observed that merchants are focused on affordability and value. "Rising processing costs and complex fee structures continue to challenge profitability, and many are re-evaluating what they're actually getting from their providers in return," he said. "They're asking for solutions that provide more value, not just fees, and are integrated into their broader customer experience strategies that drive tangible business outcomes."

Dale S. Laszig, founder of DSL Direct LLC and content strategy director for The Green Sheet Inc., zeroed in on divergent needs of business owners in her local region. "Some small and midsize business owners in Northeast Pennsylvania are NYC expats who have brought next-gen paytech to remote farming communities," she said. "Others, here for generations, use digital apps, modern POS systems, and mobile ATMs, provided by local banks and ISOs, at fairs and outdoor venues."

She added that in this environment, "merchants frequently complain about connectivity, specifically slow speeds, internet outages and service interruptions. These issues are improving as telco brands enhance infrastructure and incoming competitors expand redundancy and coverage options."

Fragmentation is causing problems for merchants working with Emily Baxter, partner at RPY Innovations. "Reconciliation is a hot topic: as merchants continue to expand supported payment methods to include cards, ACH and alternative payment methods, the reconciliation process becomes fragmented across multiple deposits and data sources," she said.

Fintech expert Max Sinovoi mentioned he has always loved talking to his merchants. "During my whole career I've made it a point to speak with merchants whenever possible with my trusted ISO/agent," he said. "I've been having a lot of conversations with merchants lately who are feeling squeezed—not necessarily because their payment rates have gone up, but because everything else has.

"Labor, rent, supplies and marketing costs have all climbed, while their margins haven't kept pace. So even a few extra basis points in processing fees hit harder than they used to. From their side, it's not just about lowering fees anymore; it's about predictability and value."

Sinovois emphasized that merchants want to understand what they're paying for, get their money faster and know that their payment partner is truly invested in helping their business grow. "That's the real challenge (and opportunity) for those of us in this business," he said. "The days of 'just processing payments' are over. Merchants want someone who protects their margins, finds ways to make operations smoother and brings new ideas to the table. If we can do that, price becomes less of the conversation, and partnership becomes the focus again."

Dana Sills, director of partner relations at VyaPay, emphasized the importance of professional guidance. "Merchants don't want to be sold a solution based on what an agent wants to make a commission on that ultimately doesn't fit their business," she said. "Merchants want to be heard and understood.

"They want a knowledgeable, experienced payments professional to guide them through the process just as a CPA guides them on accounting, their financial advisor guides them on retirement planning, their mechanic guides them on long-term car care and so on. Too often the customer empathy experience falls short."

2. Are shoppers asking for faster payments or new options at the point of sale, or are other issues more pressing?

Dana Sills has found that shoppers crave the use of mobile wallets so that they can pull out their phone instead of their wallet, as that makes for a faster checkout experience. "This is even more critical as we are now entering into the holiday shopping season, which is traditionally met with greater demand and longer lines at checkout, despite fuller cashier staffing to attempt to offset the demand," she said.

She went on to say it is "surprising to see some larger big box stores with multi-lane checkout that have yet to support mobile wallet checkout. This is where smaller competing merchants have the opportunity to step in as they can make decisions and implement solutions far faster than their enterprise counterparts."

In the restaurant space in particular, Sills noted, patrons despise being told at checkout that they are in a cashless establishment only to be asked to hand over their card to a server they don't know who is going to take their card to an unseen station to run the transaction. "All businesses that are cashless need to have proper signage and have payment solutions, in this example pay at the table, where, just like in Europe, the card never leaves the sight of the cardholder."

Sills also pointed out that fraud levels tend to go up during peak periods. "This practice will help stave that concern off," she said.

According to Baxter, price sensitivity is a key motivator for many shoppers, driving increased attention to additional fees and surcharges. "This, in turn, puts pressure on the merchant to reduce costs—including their payment fees," she said.

Laszig mentioned that she sees people of all ages tapping phones, cards and wearables at the POS. It is "a practice so well established that people get frustrated when contactless methods fail," she said. "Cash payers have become as reviled as yesterday's paper-check writers in checkout lanes, despite cash being fast and simple with no ID required. The perception is that cash is slow and cumbersome, especially when people dig through coin purses for exact change."

Kahn emphasized that customers aren't asking for faster payments as much as merchants are asking for lower fees. "Shoppers still care about convenience and personalization," he said. "They want self-service options, mobile wallet payments, and the ability to start a purchase online and finish it in-store. But the bigger conversation is coming from merchants, who are focused on reducing processing costs and ensuring the fees they pay deliver real value.

#h23. How do merchant concerns differ depending on their size or vertical market? For Sinovois, it boils down to merchant size and vertical. "Their challenges really depend on their size and what type of business they run," he said. "A local pizza shop and a national franchise both take payments, but they're playing two completely different games."

Smaller merchants are usually worried about cash flow, he went on to note. "They want to know when the money hits their account, how much they're really paying, and that someone's there to help when something goes wrong," he said. "Being able to get through to their processing company and/or agent and not wait on long hold times is very important. Getting their problems and/or questions resolved quickly is HUGE. They don't have time to deal with complicated setups; they just want things to work."

Midsize merchants, on the other hand, have a little more structure, and their frustrations shift toward integrations and control, Sinovois pointed out. "They're the ones calling about syncing their POS with QuickBooks or asking why their reporting doesn't line up with deposits," he said. "They've outgrown the "basic" solutions and are starting to look for systems that actually make their operations smoother."

Larger merchants and enterprise accounts are all about optimization, Sinovois added. "They're watching every basis point, thinking about security, scalability, and how to handle payments across multiple locations or even countries," he said. "They expect customization and reliability, not just a rate quote. And then you have the vertical differences—restaurants care about tips and payroll while retailers are focused on omnichannel consistency."

At the end of the day, Sinovois stated, every merchant's pain point comes down to the same thing: they just want to get paid faster, easier and with fewer surprises.

"The key is knowing how to meet them where they are, not with a cookie-cutter pitch, but with real solutions that fit their business," he said.

Baxter and Laszig both commented on distinctions between large and small merchants. "Smaller merchants typically prioritize a solution with easy onboarding and a fully managed experience for payments, often including an integrated point of sale," Baxter said. "Larger merchants prioritize control, wanting to gain the functionality and flexibility of a payments organization without the overhead of bringing payments in-house."

Laszig stated that large enterprises "tend to process returns efficiently; small and midsize merchants feel the loss of revenue acutely and are more likely to fight returns and chargeback requests. Ways in which SMBs discourage returns include posting return policies at the cash register and on printed receipts and advising customers at checkout of final sale restrictions."

According to Kahn, merchant expectations vary widely by size and complexity. "Mid-market and enterprise organizations tend to want a more concierge, strategic partnership and hands-on support during integrations or system changes," Kahn said. "They expect proactive service, data insights, and a partner who understands how payments fit into a larger customer experience strategy.

"Smaller merchants, meanwhile, emphasize responsiveness; they need quick resolutions to technical or funding issues and clear, direct communication. Both groups want reliability; they just define it differently."

"All merchants process via different ways," Sills said. "Regardless of whether the business is using mPOS, POS systems with semi-integrations, ecommerce, invoicing with payment links, or other means, all merchants just want the process to work. The moment they have to think about it, the value declines."

Processing, Sills added, should be as natural as an autonomic process like blinking or breathing. "Once the breaks are put on those, it becomes a focus and then a concern and pulls the merchant away from their true focus on focusing on what makes their business exceptional," she said. "It's important that processing does not become a distraction and that ultimately the services provided are viewed not only as necessities, but as being feature-rich. 

4. Beyond speed and payment options, what improvements would make the biggest difference for your merchants (e.g., lower costs, fewer disputes, easier integrations, better service)?

"In addition to providing a secure environment that protects customer data, offering data analytics would help merchants deepen customer relationships and personalize the shopping experience," Laszig said. "These AI and ML-powered solutions are easy to integrate and becoming more accessible and affordable."

Kahn stated that implementation continues to be a challenge, especially for merchants investing in new POS or smart terminal solutions. "Even after onboarding, many cite reliability as a top priority, followed by stable systems, dependable funding timelines, and responsive customer support when something goes wrong," he said. "What they want most is confidence that their technology and service partners will perform consistently.

"Streamlined integrations and reliable services, from setup to daily operations, make the biggest difference in keeping merchants focused on their customers instead of their payment problems."

Baxter said, "Integrations that focus on the merchant experience can free up the merchant, allowing them to concentrate on their core business.

Aggregating data across multiple payment methods, data sources and vendors, or automating repetitive work can make payments more seamless."

"Beyond just speed and more payment options," Sinovois said, "the things that would make the biggest difference are lower fees, fewer disputes and easier integrations with the software they already use. On top of that, having responsive support when issues come up can save a ton of time and stress for them and is typically rewarded with better merchant retention. Anything that makes running payments smoother, more predictable, and less costly really matters to them."

According to Sills, true customer service is becoming a lost art, and it shouldn't be. "Those who provide it greatly will thrive in the long run," she said. "It's a number one key to retaining clients.

The old adage of it's not what they said but how you felt is real. People remember if they screamed at a poorly established chatbot, slammed down the phone on a byzantine phone tree, and crumpled up a statement because it looked too much like a cellphone or cable bill for which they also couldn't make neither heads nor tails.”

"Conversely,” she continued, “people remember when a well-spoken, seasoned, intelligent person picks up their call and guides them through their issue to full resolution. They remember when the ability to reach someone can occur with a single call to a direct line. They remember when their online reporting reflects no surprises and when statement messages are actually informative. These are the basics that can do so much to make both ISOs and their merchants truly thrive."

5. If you could name one thing merchants wish the industry would fix, what would it be?

Baxter put her merchants' top issue succinctly: "Uptime, first and foremost. Even the best solution is of no use when it's down."

Sills said, "Merchants do not want to be SaaS-fee'd to death. Older merchants appreciated the choices of solution bundles where the more robust the bundle, the less the fees per feature because they were being encouraged to maximize convenience to the cardholder, back-office efficiencies, etc. With today's app-based marketplace, stand-alone apps to support individual features can really add up. There is no 'cheaper by the dozen' bundling when each is competing for a decision-maker's eyes and approval to run up the cost ladder."

For Laszig the need to improve the chargeback process for card-present merchants rose to the top. "Restaurateurs with charged-back meals, retailers with proof of in-store purchases, and businesses dealing with forgetful customers and first-party fraud deserve a better escalation path. Let's address these grievances and reinstate transparent, sustainable face-to-face selling."

Kahn noted that merchants want affordability and quality service to go hand-in-hand. "Too often, lower-cost options come with trade-offs in support or reliability," he said. "The industry has an opportunity to better align transparent pricing with dependable support services so merchants can operate confidently without sacrificing value or trust."

Taken together, these views show that while technology keeps advancing, merchants still measure value in clear pricing, strong support and tools that simply work. An upcoming third installment in this series will share additional expert perspectives on how the payments community can meet those expectations.

Side Note: From the desk of Allen Kopelman

To deepen our look at what merchants really want, Allen Kopelman, CEO of Nationwide Payment Systems, Street SmartsSM columnist and Green Sheet Advisory Board member, tackled a complementary set of questions tailored to his work with merchants.

1. What pain points are merchants telling your team about most often right now?

   Merchants are looking for software solutions for all types of verticals. Software is driving our business right now. Free is not always the answer and that frustrates business owners when they need something with complex inventory and pricing or something very specific. Nothing that is out of the box solves those issues.

   Another thing we hear is how come our terminals don't have buy now, pay later, like Square has. Others have loans from these fintech companies, and that is why I wrote the article "Is it time to go Fintech?" [published by The Green Sheet in August 2025, www.greensheet.com/emagazine.php?article_id=7963].

2. Do you hear ISOs/MLSs or merchants specifically asking for faster or new payment methods, such as instant or crypto payments?

   Merchants think everything is free. They do not want to pay for faster payments or crypto. Most have no clue about the current tax laws surrounding crypto and the volatility of  it. We were using two vendors and processing $2 million to $4 million a month of crypto-to-fiat transactions. Once the crypto tanked and the United States changed crypto currency to digital assets and changed the tax law, all that spending stopped, as it was originally intended to not be tracked similar to cash. But that has been shut down. It's all tracked and people have to pay taxes 

3. Beyond technology speed and options, what other priorities are merchants and their customers raising (for example, cost, reliability, chargebacks, security, support)?

   Chargebacks are a big issue—VAMP, RDR, CDRN, Ethoca Alerts. Merchants are trying to figure out how to navigate this and run their businesses. I explain to ecommerce companies that they need to look at their checkout process, check boxes and policies on websites and learn how to protect against chargebacks. Learn what to look for from the scammers and have a chargeback vendor who can help you defend against chargebacks. But when a customer uses three different credit cards to ship stuff to the same address—three different orders—your common sense needs to kick in, not wow I got 3 big orders! Then when the chargeback comes in, you get the money debited and the cards were all stolen.

   We hear from restaurant owners how customers come in, order food, get served, pay and then do a chargeback, saying they were not there, don't recognize the charge or they paid cash. And the restaurant or bar owner gets frustrated that they get hit with a $20 to $30 chargeback fee, and they don't get it back. It's very frustrating to explain that they have to respond or lose the money. Many restaurants do not respond and end up with repeat customers who do this to them.

4. How do pain points differ across vertical markets you serve?

   Every market is different, but merchants have to realize that you get what you pay for. In general, merchants want you to help them solve a problem or figure out what type of technology they can use in their business. Some want do-it-yourself software; some think they know it all and show you a statement where they think they are paying 2 percent, and you show them that they are paying 5 percent.

   I have said this over and over. The other day, an ISO contacted me to talk about what I thought about the future of payments, and I told them agnostic software is not the way to go. I said what are you going to do? Learn 2-3-4 or more products, install them all , support them and drive all over town doing it? We tried that years ago and it's not scalable.

   You need to pick partners who own software and processing so you can offer better products and have the company who knows the product support it.

   If you are not selling software, you will not be around in a few years. Merchants are constantly switching from terminals and virtual terminals to software. You need to be forward thinking and up your game, but do it in a way that you are not running around doing service all the time.

5. What, in your view, should the industry focus on addressing first?

   • Fraud. The card brands need to figure out a better way to deal with fraud and cardholders who constantly do chargebacks.
   • Dual pricing and surcharge. Stop fining merchants. ISOs, POS providers and reps cannot be the merchant police and get merchants to price things the way the card brands want it done.
   • Reps paying merchants part of their residuals. This is just wrong and needs to stop. Many do not agree with me, but it makes us look like a bunch of scammers.
   • CPP Program from ETA. They can do better. Do something so that reps will want to participate. I wrote an article about this too ["Let's level-up payments industry certifications," published by The Green Sheet in June 2025, www.greensheet.com/emagazine.php?article_id=7906].
   • Embedded finance. ISOs need to get with the program and figure out how to build friendly portals, offer loans, credit cards, payroll and more. The competition is doing it, and our part of the industry is falling behind on this. 

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