# Understanding the Visa Commercial Enhanced Data Program (CEDP)

Payments fundamentals

The Visa Commercial Enhanced Data Program (CEDP) is a new interchange structure that will replace the current Level 3 program in the U.S. on **October 18, 2025**. This update has important implications for businesses using the interchange+ (IC+) pricing model, especially those that accept commercial cards like Corporate, Purchasing, and Business Credit.

CEDP introduces Product 3 interchange rates, which offer reduced network costs for merchants that meet specific data submission and verification standards.

### Timeline of key changes 

- **April 2025:** Visa introduces a new scheme fee on Level 2, Level 3, and Large Ticket transactions.
- **October 2025:** CEDP, and Product 3 interchange rates replace the existing Level 3 program.
- **April 2026:** Visa will discontinue the Level 2 interchange program.

## Current interchange savings programs: Level 2 and Level 3 

### Level 2 data requirements 

To qualify for Level 2 interchange savings, businesses must submit limited but specific transaction data depending on the card type:

| 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 2 discontinuation 
> 
> Visa will discontinue the Level 2 interchange program in April 2026.

### Level 3 data requirements (required for Product 3 under CEDP) 

To qualify for Level 3 interchange savings and Product 3 rates under CEDP, you must submit all the Level 2 requirements, **and** all the following 12 fields for each transaction:

| Field | Description |
| --- | --- |
| Discount amount | Total transaction-level discount |
| Freight or 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 | For example, "each", "box", "hour" |
| Unit cost | Cost of each unit of item |
| Discount for each 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 in the request |

### Important reminders 

- All commercial card types and applicable MCCs must meet these requirements to qualify for Level 3 or Product 3 rates.
- Sales tax is not mandatory for Level 3 qualification. Merchants in states without sales tax can still qualify by submitting all other required fields.
- “Filler” data is no longer acceptable. Visa now enforces data quality standards. Submitting blank fields, zeros, or placeholder text will disqualify transactions from lower rates.

### Visa CEDP: What's changing? 

- Product 3 interchange rates offer lower costs than current Level 3 rates.
- Business Credit cards are now eligible for these savings. Previously, they qualified only for Level 2.
- A new scheme fee applies to all transactions that submit Level 3-style data.

## Who qualifies for Product 3 interchange rates? 

### Verification process 

To be eligible for Product 3 rates, businesses must:

- Submit accurate and complete Level 3 data (as listed above).
- Undergo a Visa verification process, based on data quality.

### Key details 

- Verification may take up to three months, provided that submitted data consistently meets Visa’s standards.
- Unverified businesses can still earn Product 3 rates for each transaction, if each submission passes Visa’s data checks.
- Visa may rebalance interchange rates retroactively, which can take up to two months.

### Ongoing monitoring 

- Visa will continue to monitor data quality.
- If quality drops, Visa will issue a warning before removing verified status.

## Data quality best practices 

Visa has outlined the following guidelines to help businesses avoid common data quality issues:

| Field | Do | Don't |
| --- | --- | --- |
| line_item[product_name] | Use specific product names, especially for subscriptions. | Use generic names, blanks, repeated business names, single characters. |
| line_item[product_code] | Use actual SKUs or meaningful descriptors. | Submit tax code, card product, or random data. |
| line_item[tax][total_tax_amount] | Provide correct tax or zero where appropriate. | Provide incorrect, uniform tax values that don't match jurisdiction rules. |

## Large Ticket transactions 

Visa also offers Large Ticket interchange rates for high-value transactions that use:

- Visa Corporate cards
- Visa Purchasing cards

The rates feature:

- A higher flat fee
- A lower percentage-based interchange fee

## CEDP benefits for businesses 

- Lower processing costs with Product 3 rates.
- Expanded eligibility, including Business Credit cards.
- Granular transaction evaluation, even for unverified merchants.
- Opportunity to opt out of CEDP. Contact your processor or Visa representative.

## What should you do now? 

- Audit your current data submission process to ensure you comply with Level 3 fields.
- Start sending full line-item data if you don't already.
- Work with your processor to monitor the CEDP verification process.
- Train your teams to avoid filler or generic data. Visa is enforcing stricter standards.

## Related articles

- [Visa CEDP: Run a sale with enhanced data on the Self-Care Portal](https://support.payroc.com/en-US/core-products/payroc-gateway/web-portal/virtual-terminal/visa-cedp-run-a-sale-with-enhanced-data-on-the-self-care-portal.md)
- [Visa CEDP: Add or edit enhanced data for an existing transaction on the Self-Care Portal](https://support.payroc.com/en-US/core-products/payroc-gateway/web-portal/virtual-terminal/visa-cedp-add-or-edit-enhanced-data-for-an-existing-transaction-on-the-self-care-portal.md)
- [Visa CEDP: Add enhanced data to a subscription on the Self-Care Portal](https://support.payroc.com/en-US/core-products/payroc-gateway/web-portal/repeat-payments/visa-cedp-add-enhanced-data-to-a-subscription-on-the-self-care-portal.md)

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From [Payroc Support](https://support.payroc.com/en-US/payments-fundamentals/cedp/understanding-the-visa-commercial-enhanced-data-program-cedp). Every page is listed in [llms.txt](https://support.payroc.com/llms.txt).