October 2025 marks a major shift in how Visa processes commercial card transactions. The Commercial Enhanced Data Program, or CEDP, replaces the fragmented Level 2 and Level 3 data programs with a unified validation framework.
The change affects every business that accepts Visa commercial cards. Merchants who submit accurate, complete transaction data now access significantly lower interchange rates. Those who do not pay premium rates for the same transactions.
The difference is substantial. Level 3 processing can reduce credit card fees by up to 43%, and CEDP makes this data validation mandatory rather than optional.
What is Visa CEDP?
The Commercial Enhanced Data Program is Visa's new standard for processing commercial card transactions. It validates that merchants submit complete, accurate Level 3 data for every transaction.
Previous programs allowed merchants to submit Level 3 data without validation. Errors, missing fields, or incomplete information still qualified for lower rates. CEDP changes this dynamic entirely.
The program introduces two merchant statuses based on data quality. Verified merchants consistently submit accurate data and receive Product 3 interchange rates. Non-verified merchants pay standard rates that can be 30 to 50 percent higher.
Visa enforces these standards through automated validation checks. The system reviews transaction data in real time and assigns verification status based on accuracy and completeness.
CEDP implementation timeline
April 12, 2025: Visa began charging a 0.05% participation fee on all transactions that include Level 2 or Level 3 data. This fee applies regardless of verification status.
October 17, 2025: Full CEDP enforcement begins. Product 3 interchange rates activate for verified merchants. Non-verified merchants pay standard rates.
April 18, 2026: The Level 2 program completely sunsets. All commercial card transactions must comply with CEDP standards.
Verified versus non-verified merchant status
Your verification status determines the interchange rate you pay. The difference represents thousands of dollars annually for most businesses.
Verified merchant status
Verified merchants submit Level 3 data that passes Visa's validation checks. This status requires:
- Complete data for all required fields
- Accurate information that matches transaction details
- Consistent data formatting across all transactions
- Proper handling of tax-exempt transactions
Verified merchants access Product 3 interchange rates ranging from 1.75% to 2.05% depending on card tier. These rates apply automatically once verification status is achieved.
Non-verified merchant status
Non-verified status occurs when transaction data fails validation checks. Common causes include:
- Missing required Level 3 fields
- Data discrepancies or formatting errors
- Incomplete line item details
- Incorrect tax information
Non-verified merchants pay standard rates of 2.65% to 2.95%. The difference between verified and non-verified status represents a 44 to 51 percent increase in processing costs.
Interchange rate comparison
The table below shows the rate difference between verified and non-verified merchants across Visa business card tiers:
Note: All rates shown are effective October 17, 2025. A 0.05% CEDP participation fee applies to all transactions.
Required data for CEDP compliance
Verified status requires complete Level 3 data for every transaction. Missing or inaccurate information in any field triggers non-verified status and higher rates.
Essential Level 3 data fields
Your payment system must capture and transmit these fields:
- Product descriptions and SKU numbers: Detailed item information for each line item
- Quantities and unit costs: Individual pricing for each product or service
- Extended amounts: Total cost per line item before tax
- Tax information: Tax amounts and tax-exempt status indicators
- Freight and shipping amounts: Separate from product costs
- Customer reference numbers: Purchase order numbers or internal reference codes
- Duty amounts: If applicable to the transaction
Many payment systems capture some of these fields but not all. Review your current data collection process against this complete list to identify gaps.
Common compliance errors
Most verification failures stem from these issues:
- Tax-exempt transactions: Missing or incorrect tax-exempt indicators cause frequent validation failures. Government and institutional buyers require special handling.
- Incomplete line items: Generic descriptions like 'services' or 'products' do not meet validation standards. Each item needs specific details.
- Data formatting inconsistencies: Field formats must match Visa specifications exactly. Minor variations trigger validation errors.
- Missing freight amounts: Shipping costs must be itemized separately, even when no shipping charges apply.
Action items for compliance
April 2026 marks the final deadline for full CEDP compliance. Businesses should begin preparation now to ensure verified status before rates increase.
Compliance checklist
Follow these steps to achieve verified merchant status:
- Audit current data capture: Review which Level 3 fields your systems currently collect and identify missing elements.
- Map data sources: Determine where each required field originates in your order or invoicing system.
- Update payment integration: Modify your payment processing setup to transmit complete Level 3 data with every transaction.
- Test validation: Process test transactions to confirm data passes Visa's validation checks.
- Monitor verification status: Track your merchant status regularly and address any validation failures immediately.
- Train your team: Ensure staff understand the importance of accurate data entry for every commercial card transaction.
How Nuvei supports CEDP compliance
Nuvei helps businesses achieve verified merchant status through our integrated payment platform and ERP partnerships. Our approach focuses on accurate data capture from your existing business systems.
Most businesses already collect Level 3 data in their ERP or order management systems. The challenge is transmitting this information correctly to Visa during payment processing. Nuvei bridges this gap through direct ERP integrations that automatically extract and format transaction data.
Our ERP VAR and ISV partnerships enable seamless data flow from your business systems to the payment infrastructure. This eliminates manual data entry errors and ensures consistent formatting across all transactions.
The platform handles tax-exempt transactions correctly, a common source of validation failures. Government and institutional buyers require specific data formatting that our system applies automatically based on transaction type.
We provide technical guidance throughout the implementation process and ongoing support to maintain verified status as your business scales.
Get your free CEDP technical assessment
While this overview covers the essentials of CEDP, successful implementation requires detailed technical planning. Every business has unique ERP systems, data workflows, and integration requirements that affect CEDP compliance.
The technical details matter:
- Which specific Level 3 fields your payment gateway currently captures
- How your ERP or order management system structures transaction data
- Whether your current processor supports CEDP validation
- What data quality threshold you need to maintain for verified status
How verification status impacts your monthly cash flow
Nuvei offers a complimentary CEDP technical assessment to help you understand exactly what's required for your business. Our payment specialists will:
- Evaluate your current payment infrastructure and data capture capabilities
- Identify specific gaps between your current setup and CEDP requirements
- Map your ERP data fields to Visa's validation requirements
- Provide a detailed implementation roadmap with timeline estimates
- Calculate your potential savings with verified merchant status
This assessment is free and includes a written technical report you can share with your team.
Next steps
CEDP represents the new standard for commercial card processing. Verified merchants save significantly on every transaction through lower interchange rates. Non-verified merchants pay 44 to 51 percent more for the same transactions.
The April 2026 deadline approaches quickly. Businesses that act now have time to implement proper data capture, test their systems, and achieve verified status before higher rates apply.
Request your free CEDP technical assessment to evaluate your current data capture capabilities and develop a compliance plan tailored to your business systems.
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