Visa's New CEDP Program: What B2B Merchants Need to Know

If your business accepts corporate, purchasing, or government credit cards, there's an important change you need to know about. Visa has launched the Commercial Enhanced Data Program (CEDP), and it's reshaping how B2B merchants qualify for lower interchange rates. Here's what you need to understand and what it means for your bottom line.

What is CEDP?

CEDP is Visa's updated standard for B2B credit card transactions. It replaces the legacy Level 2 and Level 3 interchange programs that many merchants have relied on for years to reduce processing costs.

The key difference? Under the old system, simply submitting enhanced data fields, even with placeholder or generic values, was often enough to qualify for lower rates. CEDP changes that. Now, Visa uses AI-powered validation to check the accuracy and quality of your transaction data before granting preferred interchange rates.

Key Dates to Remember

1. April 2025: CEDP officially launched. A 0.05% participation fee now applies to all transactions submitted with enhanced data.

2. October 17, 2025: Full enforcement begins. Visa will actively validate data quality and classify merchants as either "Verified" or "Non-Verified."

3. April 2026: The legacy Level 2 program ends entirely. CEDP becomes the only path to interchange savings on commercial card transactions.

How Verification Works

Under CEDP, Visa evaluates your transaction data and assigns your business a status:

• Verified merchants consistently submit accurate, complete data. They qualify for reduced "Product 3" interchange rates which offer savings of 7-10% compared to standard rates.

• Non-Verified merchants have data quality issues. Their transactions are processed at higher standard rates, which can mean paying up to 40% more in interchange fees.

The threshold? Visa requires about 90% of your transactions to pass data quality checks over a rolling 30-day period to achieve and maintain Verified status.

What Data Does Visa Require?

To qualify for the best rates, your transactions need to include accurate values for fields like:

• Item descriptions (specific products, not generic terms like "merchandise")

• Product or commodity codes

• Quantities and unit costs

• Invoice or purchase order numbers

• Tax amounts

• Freight and shipping charges

• Merchant ZIP code and customer code

The critical point: placeholder data won't cut it anymore. Visa's AI will flag generic descriptions, auto-filled values, and incomplete fields causing your transactions to be downgraded.

The Financial Impact

Let's be clear about what's at stake:

Scenario	Impact
Verified merchant	7-10% savings on interchange (minus 0.05% fee)
Non-Verified merchant	Up to 40% higher interchange costs

For a business processing $1 million annually in commercial card transactions, the difference between Verified and Non-Verified status could be tens of thousands of dollars per year.

What Should You Do Now?

1. Audit your current data: Review what information your POS system or payment gateway actually submits with each transaction.

2. Identify placeholder values: Look for generic descriptions or auto-filled fields that need to be replaced with real data.

3. Talk to your processor: Ask about your current CEDP status and request validation reports showing any error codes Visa has flagged.

4. Update your processes: Make sure your team understands the importance of entering complete, accurate transaction details.

The Bottom Line

CEDP represents a significant shift in how Visa handles B2B interchange pricing. Merchants who adapt early will lock in meaningful cost savings. Those who don't risk paying substantially more for every commercial card transaction they process.

At PayTech Trust, we're helping our merchants navigate these changes and ensure their systems are ready for CEDP enforcement. If you have questions about your CEDP status or need help optimizing your transaction data, reach out to us at contact@paytechtrust.com or click here.