The Collaborative International Dictionary of English v.0.48:

nickel-and-dime \nick"el-and-dime"\, v. t. [imp. & p. p.
   nickel-and-dimed or nickeled-and-dimed; p. pr. & vb. n.
   nickel-and-diming or nickeling-and-diming.]
   1. To harass or annoy with petty demands or for trivial
      reasons; specifically, to insist on minor concessions in a
      negotiation.
      [PJC]

   2. To weaken or impair gradually or by small steps; as, to be
      nickel-and-dimed into bankruptcy by the operating
      overhead. [informal]
      [PJC]