Visa’s Commercial Enhanced Data Program (CEDP): What Replaced Level 2 and Level 3

The short answer: Visa has replaced its old Level 2 and Level 3 programs for business and commercial cards with the Commercial Enhanced Data Program (CEDP). Sending a tax amount and a PO number no longer earns a lower rate on Visa. To qualify now, you have to send complete, accurate line-item data on every transaction, keep that data accurate enough for Visa to rate you “Verified,” and pay a 0.05% participation fee.

For Orange County manufacturers, distributors, contractors, and B2B service companies that take a lot of business cards, this is the biggest change to commercial card costs in years. Here’s what changed, what it costs, and what to do about it.

What Were Level 2 and Level 3?

For years, businesses that accepted corporate, purchasing, and business credit cards could earn lower interchange rates by sending extra data with each transaction:

• Level 2 — the sales tax amount and a customer code or PO number.
• Level 3 — full line-item detail: product descriptions, product codes, quantities, unit prices, and freight.

Many gateways sent Level 2 data automatically, and some filled in Level 3 fields with generic or placeholder values just to qualify. That’s the practice CEDP was designed to end.

What Is Visa’s Commercial Enhanced Data Program?

CEDP is Visa’s replacement for those programs on U.S. commercial and small-business credit cards, including corporate, purchasing, business, and fleet cards. It rolled out in stages:

• April 2025: CEDP launched, and a participation fee began on transactions submitted with enhanced data.
• October 17, 2025: Visa’s new “Product 3” rates took effect, and the old Level 3 program was retired, except for fleet fuel-only transactions.
• April 2026: Visa’s Level 2 program was retired, again except for fleet fuel-only transactions. Level 2 data alone no longer earns a reduced rate on Visa.

What Does CEDP Cost?

Participating transactions carry a 0.05% (5 basis point) participation fee. In return, qualifying transactions get Product 3 interchange rates, which industry sources put at about 0.15% lower on eligible cards. The net benefit is roughly 0.10% on qualifying volume.

The catch is the word “qualifying.” If your data doesn’t pass Visa’s checks, you can end up paying the participation fee without getting the lower rate.

What Data Does CEDP Require?

Visa now checks the quality of the data, not just whether the fields are filled in:

• Real item descriptions — not your business name, a generic label like “services,” or a single character.
• Real product codes — a SKU, manufacturer part number, or the buyer’s product code. A merchant category code doesn’t count.
• Quantities, unit prices, and line totals for each item.
• Math that reconciles. Line items, tax, and shipping must add up to the total authorized amount.

Placeholder and templated data no longer qualifies. The data should come from your actual invoice, ERP, or POS.

What Does “Verified” Mean?

Every merchant starts as Non-Verified. Visa reviews submitted data for up to 45 days after each transaction. According to processor documentation, a merchant becomes Verified when at least 90% of its relevant transactions meet CEDP requirements over the previous 30 days. Verified merchants get the lower rates in real time. Non-Verified merchants may get adjustments later, once validation is complete. Bad data can also lead to transactions being reclassified at higher rates.

Does This Affect Mastercard?

No. CEDP is a Visa program. As of this writing, Mastercard still offers reduced rates for Level 2 and Level 3 data on its commercial cards. A business that takes both networks should keep sending complete data for both — the same line-item data that qualifies on Visa also covers Mastercard.

What Should B2B Businesses Do Now?

1. Pull a recent statement and look at your Visa commercial card transactions. Are they landing in Product 3 categories, or in standard commercial rates? Is there a CEDP participation fee line?
2. Ask your processor two questions: Are we enrolled in CEDP? And are we Verified or Non-Verified?
3. Check where your line-item data comes from. If your gateway is filling in generic descriptions or default product codes, you’re paying the fee without the benefit.
4. Connect your invoicing or ERP system to your gateway so real line items flow through automatically. Most modern B2B gateways support this.
5. Run the numbers. If only a small share of your volume is on Visa commercial cards, CEDP may not be worth the setup. If it’s a large share, it usually is.

If you’re not sure what you’re paying on business cards today, start with our guide to reading your merchant statement, or check your effective rate with the fee calculator.

Frequently Asked Questions

Does Visa still offer Level 2 rates?

No. Visa retired its Level 2 program in April 2026, except for fleet fuel-only transactions. Reduced commercial rates on Visa now come through CEDP and its Product 3 rates.

What is the CEDP participation fee?

A 0.05% fee on transactions submitted to the program with enhanced data.

What happens if my line-item data is generic?

Visa’s validation can mark you Non-Verified. You may pay the participation fee without getting the lower Product 3 rates, and transactions can be reclassified at higher rates.

Does CEDP apply to Mastercard or American Express?

No. CEDP is a Visa program. Mastercard still recognizes Level 2 and Level 3 data on its commercial cards.

Can DL Payments help us qualify?

Yes. We review how your gateway, invoicing, and ERP send transaction data, check whether you’re Verified, and show you whether CEDP is saving or costing you money.

Sources: Rainforest — Visa CEDP requirements · PNC — How Visa’s new data platform can help merchants · Finix — What the end of Level 2 & 3 means for B2B · Beacon Payments — Visa’s Level 2 interchange is sunsetting · Easy Pay Direct — Level 2 and Level 3 processing in 2026