Visa CEDP Explained: What the Commercial Enhanced Data Program Means for B2B Merchants

What CEDP is

For years, B2B merchants lowered their commercial card costs by sending Level 2 and Level 3 data with each transaction: tax amounts, customer codes, and line-item detail. The card networks rewarded that extra data with reduced interchange because it helps corporate buyers reconcile purchases and manage spend.

CEDP is Visa's overhaul of that model. Instead of several overlapping programs, Visa now uses one framework with Product 3 interchange categories for purchasing, corporate, and small business cards. The goal is more reliable transaction data for card issuers and their commercial clients, which means better reporting and easier reconciliation on the buyer's side.

How commercial interchange rates are changing

The table below compares the legacy programs with their Product 3 replacements for common Visa commercial card types.

Rates reflect Visa U.S. commercial interchange as announced for CEDP and exclude the 0.05% participation fee. Visa updates interchange periodically, so confirm current rates with your processor.

Verified vs. unverified merchants

Under CEDP, Visa sorts merchants by how consistently their data meets the program's standards. Which group you fall into decides when you get the lower rate.

The participation fee

CEDP adds something new: a 0.05% (5 basis point) participation fee. It applies to CEDP-flagged transactions that meet Visa's enhanced data specifications and qualify at Product 3. Flagged transactions that don't qualify aren't charged the fee. In other words, the fee is effectively the price of the lower rate. On the corporate and purchasing card rows above, it still leaves a net saving compared with the legacy rates.

Why Visa made the change

The old enhanced data system mostly ran on trust. If the Level 2 or Level 3 fields were filled in, the transaction usually qualified for the better rate, whether or not the data was meaningful. Many payment setups filled those fields with generic defaults, such as a single placeholder line item on every order. That lowered costs but left buyers with remittance data they couldn't use.

CEDP closes that gap. There is no longer a mid-tier fallback that rewards partial data, and Visa now checks what is submitted. The trade-off for merchants is clear: invest in sending accurate, complete transaction data, or accept standard commercial rates.

The program also brings new operational complexity. The participation fee and delayed adjustments for unverified merchants mean interchange costs can shift after a transaction settles. That makes reconciliation and pricing harder to predict for merchants, acquirers, ISVs, and software platforms. Other networks are likely to watch how CEDP performs.

Rollout timeline

• April 2025: program launch
  • Visa updates its authorization (V.I.P.) and settlement (Base II) systems for CEDP
  • A CEDP flag becomes required on Level 3 and Large Ticket transactions
  • The 0.05% participation fee begins on qualifying flagged transactions
• October 2025: Product 3 categories go live
  • New Business Product 3 interchange categories are introduced
  • Commercial Product 3 rate changes take effect
  • Issuers adopt the new interchange adjustment process
  • TC-20 transaction-level reporting begins, based on data validation results
• April 2026: legacy Level 2 retired
  • Level 2 programs for Small Business and Commercial Credit are discontinued
  • Fleet Level 2 fuel-only and Government Large Ticket transactions keep their existing rates

How to prepare

• Check your systems. Make sure your front-end and payment systems can handle the CEDP flag and the verified and unverified outcomes, because both directly affect your interchange.
• Talk to your partners early. Confirm that your gateway, middleware, ERP connector, and software vendors support CEDP data requirements and send line-item detail at authorization.
• Monitor data quality. Set up regular checks to catch incomplete or non-compliant submissions before they lead to downgrades or reclassifications.
• Plan for adjustments. Prepare your finance team for post-settlement credits, reclassifications, and changes to your effective rate from month to month.
• Train customer-facing staff. Give sales and support teams clear guidance on verification criteria, Product 3 qualification, and how CEDP may affect pricing and residuals.

How TouchSuite can help

TouchSuite works with B2B merchants and ERP users to send complete, accurate enhanced data through integrated payment workflows. If you want to know how CEDP affects your commercial card volume, or whether your current setup qualifies for Product 3 rates, our team can review your processing and walk you through your options.