Understanding Visa's New B2B Credit Card Rules: Your 2025 CEDP Compliance Guide
If your business processes commercial credit card transactions, a significant change is coming that could affect your bottom line as early as October 2025. Visa is transforming how interchange fees work for B2B payments through its Commercial Enhanced Data Program (CEDP).
Beginning in April 2025, CEDP will introduce stricter data requirements for business credit card transactions. Companies that don't provide complete, accurate Level 3 transaction data—including detailed line-item information, product descriptions, quantities, pricing, and shipping costs—will face increased interchange fees.
Here's what you need to know about these changes and how SimpliPay can help you navigate them successfully.
Understanding CEDP: The Basics
CEDP is replacing Visa's existing Level 2 and Level 3 interchange programs. While these programs were voluntary and offered reduced rates for qualifying transactions, CEDP creates a unified framework with stricter requirements.
Under CEDP, acquirers participating in the program will pay a 0.05% fee on qualifying transactions. Visa is restructuring how businesses qualify for reduced interchange rates, with new eligibility standards and fee structures taking effect throughout 2025.
Why This Matters for Your Business
CEDP merges the previous Level 2 and Level 3 programs into one comprehensive system that rewards high-quality transaction data. The program has several key objectives:
Ensuring accurate, high-quality data for commercial payments
Validating transaction information and merchant compliance based on data standards
Creating interchange incentives for businesses that meet quality requirements
Improving reporting capabilities, analytics, and customer experience
Transaction Data Levels Explained
Understanding the three levels of credit card processing data is essential for navigating CEDP:
Level 1 Data This basic level requires minimal information and carries the highest interchange fees. Most consumer transactions fall into this category. Required data includes card details, transaction amounts, dates, and AVS information. Level 1 requirements remain unchanged under CEDP.
Level 2 Data Previously available for business and government transactions, Level 2 required additional information beyond Level 1, such as sales tax amounts. This resulted in lower interchange fees. However, most Level 2 programs will be discontinued by April 2026, with many cards becoming eligible for Level 3 programs instead.
Level 3 Data This is the most detailed level, offering the lowest interchange rates. Qualifying merchants can submit comprehensive line-item details for large business transactions. Required information includes item descriptions, quantities, units of measure, freight and shipping amounts, commodity codes, discount information, duty amounts, product codes, unit costs, and line-item totals.
As of October 2025, the Level 3 program has expanded with new incentives and broader eligibility for additional card types. CEDP is actively evaluating Level 3 data submissions.
Implementation Timeline
Visa is rolling out CEDP throughout 2025 with two critical milestones:
October 18, 2025: Visa launches the Commercial Enhanced Data Program (CEDP), replacing the existing Level 3 program with reduced Product 3 interchange rates for verified merchants.
April 18, 2026: Visa discontinues Level 2 programs entirely. From this point forward, CEDP becomes mandatory for businesses seeking U.S. interchange savings. Merchants can still submit tax data, but without quality Level 3 information, there will be no interchange incentives. Additional program details will be released as implementation continues.
Business Verification Under CEDP
The CEDP verification process can take up to 30 days while Visa reviews the data each business submits. Once verified, businesses receive reduced interchange rates. However, if Visa identifies ongoing data quality problems, businesses risk losing their verified status.
Non-verified businesses can still qualify for reduced rates if they meet data requirements. The verification process includes:
Visa examining data quality for each transaction
Issuers sending acquirers adjustments reflecting the difference between original and Level 3 qualification rates
Common data quality mistakes to avoid include leaving required fields blank, entering single letters instead of proper information, and using vague or generic product descriptions.
The Financial Impact: Understanding the New Rate Structure
Without Level 3 quality data, your business card transactions will default to higher interchange rates, increasing your processing costs. Here's how the new CEDP rates compare to current rates:
Visa Interchange Program | Current Rate | New CEDP Rate |
|---|---|---|
Commercial Fuel Level 3 | 1.90% + $0.10 | 1.75% + $0.10 |
Corporate Non-Travel Level 3 | 1.90% + $0.10 | 1.75% + $0.10 |
Purchasing Non-Travel Level 3 | 1.90% + $0.10 | 1.75% + $0.10 |
Corporate Large Ticket | 1.45% + $35 | 1.30% + $35 |
Purchasing Large Ticket | 1.45% + $35 | 1.30% + $35 |
Which Businesses Should Pay Attention?
This regulatory change impacts numerous industries:
Wholesalers and distributors
Professional service providers
Manufacturing companies
Any suppliers accepting commercial credit cards
If your business accepts corporate card payments and currently depends on Level 2 or 3 interchange incentives, this transition will directly impact your acceptance costs and profit margins.
Preparing for CEDP: Your Action Plan
1. Audit your data workflows. Verify that your point-of-sale systems, ERP platforms, and payment gateways can capture and transmit all required fields accurately.
2. Engage your payment processor. Confirm they support CEDP submissions and inquire about your current verification status.
3. Test consistently. Regularly validate your Level 3 data submissions for accuracy and compliance with the new CEDP standards effective October 2025.
4. Monitor your verification status. Visa conducts monthly reviews, so maintain consistently high data quality to stay verified.
5. Prepare for the Level 2 sunset. Ensure your systems can process complete Level 3 data before April 2026.
6. Educate your staff. Train your accounting and finance teams on the importance of data accuracy and error identification.
How SimpliPay Helps You Stay Compliant
CEDP isn't simply a regulatory update—it's a change that will impact your revenue. The positive news? You don't have to manage it on your own.
SimpliPay provides the technology, tools, and expertise to help you qualify for reduced interchange rates. Our CEDP-ready payment gateway enables you to:
Qualify transactions for Level 3 interchange benefits
Complete missing data fields and enter all required transaction information
Navigate complex interchange regulations with expert guidance
Access comprehensive assessment and onboarding to ensure CEDP readiness
Protect Your Profit Margins
The shift to CEDP represents a critical moment for businesses processing B2B payments. Taking proactive steps now will help you avoid unnecessary fees and maintain competitive pricing.
Contact SimpliPay today to schedule a CEDP readiness assessment and discover how our payment solutions can safeguard your margins while ensuring full compliance with the new requirements.