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What You Need to Know About Visa’s New CEDP Program: Tips for Partners and Merchants
Posted on By Yosselin Nunez
Have you been hearing the chatter about the Level 2 and Level 3 processing rules changing?
It’s true.
Visa has announced the Commercial Enhanced Data Program (CEDP)—a major update to its U.S. commercial-card interchange structure. Effective October 2025, Visa’s Level 3 program was replaced by CEDP, and in April 2026, the Level 2 program will also sunset.
CEDP introduces a new Product 3 interchange category designed to reward businesses that submit high-quality transaction data. While the program requires more data entry and accuracy, it also creates opportunities for merchants to achieve deeper interchange savings.
Product 3 rates offer even lower costs than previous Level 3 rates, and Business Credit cards are now eligible for these savings for the first time.
But how does the new system work? As always, Payroc is providing helpful resources, including this blog, to assist you.
What Is Enhanced Data, and Why Does It Matter?
Enhanced data refers to the additional line-item information included with a commercial-card transaction—things like product descriptions, quantities, unit costs, and tax details.
When merchants submit this data accurately, Visa can better identify the purchase type and risk level, leading to lower interchange costs.
In the past, businesses that sent Level 2 or Level 3 data qualified for reduced interchange rates. Under CEDP, Visa is tightening standards and verifying merchants that consistently provide accurate, complete data. Verified merchants will continue to benefit from lower Product 3 interchange rates.
Key Timeline of Changes
- April 2025: Visa introduced a new scheme fee on Level 2, Level 3, and Large Ticket transactions.
- October 2025: Visa replaced Level 3 with the new CEDP and Product 3 interchange structure.
- April 2026: Visa will sunset the Level 2 interchange program.
For high-value transactions, Visa’s Large Ticket interchange rates continue to apply to Corporate and Purchasing cards. These rates feature a higher flat fee and lower percentage-based interchange fee, giving businesses predictable costs on large purchases.
What’s Changing, Exactly?
In the past, technology used by merchants could automatically populate certain fields to help meet data requirements for interchange savings. Under CEDP, Visa no longer allows generic or placeholder data. Merchants must provide accurate, complete, and specific information for each required field to qualify for discounted rates. Transactions with blanks, zeros, or filler text will be disqualified.
Those who consistently submit complete, validated data will earn Product 3 rates and deeper interchange savings, while incomplete or placeholder data will result in higher costs. This shift rewards accuracy over automation.
CEDP is for Visa transactions only. For now, Level 2, Level 3, and Large Tickets processes and nomenclature will remain the same for Mastercard commercial-card transactions.
The New Verification Process
To receive Product 3 interchange rates, Visa requires businesses to go through a data verification process based on the quality and consistency of their enhanced data submissions.
Key details:
- Visa will review transaction data as part of the verification process.
- Once verified, Visa will continue to monitor data quality. If standards drop, verified status can be revoked after notice.
- Visa will continue to monitor data quality, and in some cases, may apply retroactive interchange fees if data standards are not met.
What are the Data Requirements?
If a customer uses a Visa commercial card to pay for a purchase, in order to receive a lower interchange rate for the transaction, the merchant must fill in the following enhanced-data fields with specific information:
Level 2 Data Requirements
These fields apply today and remain active until April 2026, when the Level 2 program sunsets.
| Card Type | Required Data |
|---|---|
| Business and Corporate Cards | Sales tax indicator and sales tax amount |
| Purchasing Cards (Non-Fuel MCCs) | Sales tax indicator and sales tax amount |
| Purchasing Cards (Fuel MCCs) | Customer code |
Level 3 Data Requirements (Required for Product 3 Under CEDP)
Starting October 2025, merchants must submit all Level 2 requirements plus the following 12 line-item fields to qualify for Product 3 interchange rates:
| Field | Description |
|---|---|
| Discount amount | Total transaction-level discount |
| Freight/shipping amount | Shipping or freight charges |
| Duty amount | Any applicable duty or import charges |
| Item commodity code | Code representing the item category or type |
| Item descriptor | Description of the item being sold |
| Product code | SKU or other product identifier |
| Quantity | Number of units sold |
| Unit of measure | e.g., "each," "box," "hour" |
| Unit cost | Cost per unit of item |
| Discount per line item | Individual line-item discount |
| Line-item total | Extended total for each line item |
| Line-item detail indicator | Indicates that line-item data is included |
What CEDP Means for Payroc Agents and Referral Partners
Merchants may need additional support navigating enhanced data requirements and the verification process. Payroc’s support teams are available to provide guidance, and our step-by-step enhanced data how-tos for merchants can be found in the Payroc Support Portal.
What CEDP Means for Payroc ISVs
If your portfolio includes merchants that accept commercial-card payments, you may be affected by this change. To support you, Payroc has enhanced our API. Integrated partners who are impacted and wish to enable enhanced data validation should review their current integrations to take advantage of the new capabilities.
The API now supports a tax amount field, allowing you to submit a calculated tax value with each transaction. By updating your integration, you can pass tax calculations directly from your software without requiring a preconfigured tax rate or validation by the gateway. These updates make it easier for your clients to stay compliant with CEDP and continue qualifying for Product 3 interchange rates.
As always, contact your Payroc Partner Manager to discuss ongoing strategy and next steps.
What CEDP Means for Payroc Merchants
Payroc is working closely with Visa and our technology partners to simplify compliance and ensure accurate data submission. Participation in CEDP is optional, but required to access Product 3 savings.
For merchants processing through the Payroc Gateway, upcoming updates include tax rate calculation tools and improved line-item templates. For detailed steps on how to run sales with enhanced data or manage your enhanced data templates, visit our Enhanced Data Support Page.
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