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Is Your Payment System Ready for Visa’s New B2B Card Rules?
What Small Business Owners Actually Need to Do About CEDP | Updated January 2026
By IntelliPay Compliance | 20+ Year Payment Compliance Experience | 4 Minute Read
Executive Summary
What: Visa’s Commercial Enhanced Data Program (CEDP) replaces the old Level 2 and Level 3 interchange system for B2B card transactions.
When: Full enforcement began October 2025. Level 2 sunsets entirely in April 2026.
Who’s affected: Any merchant accepting corporate, purchasing, or business credit cards.
Impact: Merchants not meeting the new data standards can see interchange costs rise 0.5%–1.5% on commercial card volume.
Action required: Verify your payment gateway supports CEDP, check for transaction downgrades, and ensure you’re sending complete, accurate enhanced data.
If you accept business credit cards, corporate cards, or purchasing cards from your customers, there’s a change happening right now that could quietly raise your processing costs—unless you know what to do about it.
Visa’s Commercial Enhanced Data Program (CEDP) went into full enforcement in October 2025, and it fundamentally changes how B2B card transactions qualify for lower interchange rates. The old “Level 2 and Level 3” system that many merchants relied on? It’s being phased out. And if your payment setup isn’t keeping up, you could be paying more than you need to on every commercial card transaction.
Here’s what’s actually happening—and what you can do about it.
The Short Version: What Changed?
For years, businesses that sold to other businesses could get lower interchange rates by passing along extra transaction data—things like tax amounts, invoice numbers, and line-item details. This was the Level 2 and Level 3 system. The more data you sent, the lower your rate.
As of October 2025, Visa replaced that system with CEDP. The concept is similar—send better data, get better rates—but the standards are stricter, and Visa is now actively monitoring whether your data is accurate, not just whether you’re sending something.
In plain terms: it’s no longer enough to check the boxes. The data you send has to be real, complete, and match what’s actually on the invoice. Placeholder values like “0000” for a PO number or generic descriptions won’t cut it anymore.
Why This Matters to Your Bottom Line
When a commercial card transaction doesn’t meet Visa’s new data requirements, it gets “downgraded” to a higher interchange category. That means you pay more—often without realizing it.
Industry estimates suggest that merchants who don’t qualify for CEDP’s preferred rates can see their effective interchange costs rise by 0.5% to 1.5% on affected transactions. For a business processing $500,000 in B2B card payments annually, that could mean an extra $2,500 to $7,500 per year in fees.
The tricky part? These downgrades often don’t show up with a big red flag on your statement. They quietly eat into your margins month after month.
Who Needs to Pay Attention?
This matters most if you:
- Sell products or services to other businesses (B2B)
- Accept corporate, purchasing, or business credit cards
- Work with government agencies or large organizations
- Currently use (or used to use) Level 2/3 processing
If most of your card transactions are from everyday consumers using personal cards, CEDP won’t directly affect those transactions. But if commercial cards make up even a portion of your volume, it’s worth understanding what’s changed.
Four Things You Can Do Right Now
- Ask your processor about CEDP. Find out whether your gateway supports the new requirements and whether your transactions are qualifying for preferred rates. If they can’t tell you, that’s a red flag.
- Look for downgrade reports. Your monthly statement should show which transactions qualified at the best rates and which got downgraded. If you’re seeing a lot of downgrades on commercial cards, your data might not be meeting the new standards.
- Check what data you’re actually sending. The required fields include things like customer codes, tax amounts, freight charges, and line-item details. If your system is sending placeholder or incomplete data, those transactions won’t qualify.
- Consider automated data enrichment. Manually entering enhanced data for every B2B transaction isn’t practical for most small businesses. Modern payment systems can automatically populate the required fields, helping your transactions qualify without adding to your staff’s workload.
Key Dates to Know
October 2025: CEDP enforcement began. Visa is now validating data quality and assigning merchants as “verified” or “non-verified” based on data accuracy.
April 2026: Visa will fully retire the old Level 2 program. After this date, CEDP will be the only path to lower commercial interchange rates.
If you’ve been relying on Level 2 processing and haven’t made any changes, now is the time to review your setup before that option disappears entirely.
The Bottom Line
Visa’s CEDP isn’t trying to make your life harder—it’s designed to reward merchants who provide accurate, detailed transaction data. For small businesses that take the time to get their payment systems aligned, it can actually reduce costs on B2B card sales.
But if you ignore it, you’ll likely end up paying more by default. And unlike other fee increases, this one is largely within your control to fix.
The good news? You don’t have to figure this out alone. A knowledgeable payment processor can help you understand where you stand, identify gaps in your current setup, and implement solutions that keep your commercial card costs as low as possible. . For no-obligation review of your situation, contact the payment experts at IntelliPay.
Frequently Asked Questions
Q: Does CEDP affect all my card transactions?
A: No. CEDP applies specifically to commercial card transactions—corporate cards, purchasing cards, and business credit cards. Consumer credit and debit card transactions are not affected by these changes.
Q: What’s the difference between “verified” and “non-verified” status?
A: Visa assigns merchants a status based on data quality. Verified merchants consistently send accurate, complete data and automatically receive the best Product 3 interchange rates. Non-verified merchants can still qualify transaction-by-transaction, but rates are applied after Visa reviews each submission—which can delay savings or result in downgrades.
Q: What data fields are required under CEDP?
A: Required fields include customer code, tax amount, tax indicator, line-item details (description, quantity, unit of measure, unit price), freight/shipping amount, and purchase order number. The key difference from the old system is that these values must be accurate and descriptive—not placeholders or generic entries.
Q: Can I still use Level 2 processing?
A: For now, yes—but not for long. Visa will fully retire the Level 2 program in April 2026. After that date, CEDP (with full Level 3-style data) will be the only path to reduced commercial interchange rates.
Q: How do I know if my transactions are being downgraded?
A: Check your monthly processing statement for interchange qualification reports or downgrade summaries. If you’re on interchange-plus pricing, you should be able to see which transactions qualified at preferred rates versus standard or downgraded rates. If you can’t find this information, ask your processor for a detailed breakdown.
Q: What if my payment system can’t send the required data?
A: If your current gateway or POS system doesn’t support CEDP-compliant data transmission, you may need to upgrade or switch providers. Many modern payment platforms now offer automated data enrichment that populates the required fields without manual entry. This is worth discussing with your processor.
Disclaimer
This article is for general educational purposes only and is not legal, tax, or financial advice. Card network rules, interchange rates, and qualification criteria are subject to change. Actual savings depend on your specific transaction volume, card mix, and data accuracy. Business owners should review their specific situation with their payment processor or a qualified advisor before making decisions based on this content. All trademarks and service marks are the property of their respective owners.