What’s Changing?
CEDP is being introduced in three phases, each designed to gradually shape how enhanced data is submitted and how interchange rates are determined:
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April 11, 2025:
- A new 0.05% participation fee is added to all CEDP-eligible transactions.
- This applies even if the merchant qualifies for lower interchange rates.
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October 17, 2025:
- Visa will use machine learning to analyze the accuracy of submitted data and classify merchant transactions accordingly.
- Interchange discounts will be awarded only to those whose data passes validation.
- Rebates may be delayed by up to 45 days.
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April 17, 2026:
- Level 2 interchange will be phased out, except for fuel transactions.
- Level 3 data will become the new baseline for meaningful savings.
What Are Level 2 and Level 3 Data?
Enhanced transaction data refers to additional information included with a sale beyond the basic amount and card number.
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Level 2 includes:
- Tax amount
- Customer code or order ID
- Invoice or PO number
- Sales tax indicator
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Level 3 adds more detail, such as:
- Line-item descriptions
- Quantities and unit pricing
- Product or item codes
- Freight and duty charges
Submitting this kind of information requires payment systems capable of capturing and transmitting it accurately.
Why This Matters
Visa’s CEDP is designed to help buyers and issuers better validate and track spending, while encouraging merchants to provide more useful data during the transaction process.
Pro Perspective: Cost Reduction and Operational Gains
- Lower Interchange Rates: Merchants can save 7–10% per commercial transaction by qualifying for enhanced rates.
- Improved Data Accuracy: Submitting detailed line-item data allows for better reporting and reconciliation—especially useful in B2B or high-ticket sales environments.
- Automation Opportunities: Modern systems can automate data submission, reducing manual entry and increasing speed.
Con Perspective: Increased Overhead and Delayed Rebates
- Participation Fee: The mandatory 0.05% fee adds a small cost to every CEDP transaction—even if your system already submits compliant data.
- Implementation Costs: Smaller merchants may need to upgrade POS systems or integrate new invoicing tools to support Level 2/3 submissions.
- Delayed Rebates: With rebates delayed up to 45 days, merchants may face cash flow uncertainty, particularly those operating on tight margins.
What Merchants Should Do Now
If your business accepts commercial or government credit cards regularly, this program will likely affect you. Here are some steps to prepare:
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Assess Your Payment System
Check if your POS or invoicing platform supports Level 2 or Level 3 data submission. If not, start evaluating solutions that do. -
Analyze Cost vs. Benefit
Compare your commercial card volume with potential savings. If you’re processing large B2B transactions, the rewards may outweigh participation and upgrade costs. -
Talk to Your Payment Provider
Ensure your payment processor understands CEDP and can guide you through eligibility, system compatibility, and setup. -
Adjust Expectations Around Rebates
Plan your financial forecasting with rebate delays in mind. You may need to adjust how you model cash flow if you're expecting significant savings.
Need Help Navigating CEDP?
If your business processes commercial or B2B transactions and you're unsure whether your current system supports Level 3 data—or how to take full advantage of Visa’s new structure—we can help.
Contact Adv Pay Pro to schedule a free consultation and ensure you're prepared for the CEDP transition.