1.75% or 2.95%? Visa’s October changes will decide which rate your transactions qualify for. The difference is massive: on just $1 million in volume, that’s an $8,000+ swing in interchange fees.

Most businesses still focus on processor rates, but here’s the reality: 85%+ of your costs are interchange fees that have nothing to do with the processor. The real question is whether your transactions are qualifying correctly.

What Is CEDP?

Launched in 2025, Visa’s Commercial Enhanced Data Program (CEDP) is designed to ensure only merchants submitting accurate enhanced data (Level 2 and Level 3) qualify for reduced interchange fees on commercial, purchasing, and corporate card transactions.

CEDP isn’t about lowering processor costs — it’s a data validation program. Visa will verify that every required field is present, totals match, and line-item details are correct. Merchants submitting placeholder or inaccurate values will fail validation.

What’s Changing in October

Beginning October 17, 2025, Visa will use machine learning to review transaction data quality. Merchants will be classified as:

• Verified → Consistently submitting high-quality data, eligible for reduced interchange (as low as 1.75%).

• Non-Verified → Failing to meet standards, forced into higher interchange (as high as 2.95%).

• Inaccurate Data → Transactions clear at Standard 2.95%, even if you “thought” you were submitting Level 3.

This means if your data isn’t perfect, you don’t just miss out on Level 3 — you’ll downgrade to Standard at 2.95%.

Updated Interchange Rates Under CEDP

In exchange, Visa applies a 0.05% participation fee on qualifying transactions.

Key Dates to Know

• April 2025: 5 bps assessment markup went into effect.

• October 2025: Verified status becomes mandatory to access lower interchange.

• April 2026: Visa will eliminate Level 2 interchange (except for Commercial Fuel). Transactions that used to qualify for Level 2 will only qualify for Level 3 if the merchant is Verified and sending accurate data.

Why Most Merchants Will Fail

We’ve been reviewing Visa’s partial reports — and the findings are alarming. Many gateways that claim to automate Level 3 are still passing a high percentage of inaccurate data.

If that’s happening in your environment, you’re at risk of:

• Losing Verified status

• Being downgraded to Standard at 2.95%

• Paying thousands more each month in interchange fees

How to Stay Compliant

To protect your savings under CEDP:

1. Ensure System Readiness – Confirm your gateway or POS can capture and transmit true Level 2/3 data.

2. Work With Your Provider – Verify your transactions are set up properly to qualify.

3. Review Statements Regularly – Check for the 0.05% participation fee and ensure reduced interchange is applied.

4. Avoid Placeholder Data – Fake invoice numbers, tax amounts, or ZIP codes will get flagged.

Final Thoughts

Visa’s CEDP presents a major opportunity for B2B merchants to reduce processing costs — but only if your data is accurate.

This isn’t about negotiating processor rates. It’s about whether your transactions qualify correctly — at 1.75% or at 2.95%.

Now is the time to confirm your data is being passed accurately — before Visa’s October deadline locks you into higher costs.

Questions? Contact us today: 888 790 3450 or email info@ revolution-payments.com

Level III credit card processing is a more detailed way of accepting B2B and B2G transactions.  Businesses whos merchants accounts are properly set up can lower the interchange costs of accepting these cards by 30%-40% before your process tacks on their rate.

Interchange is the same for all processors and Level 1, Level II and Level III however when it comes to B2B and B2G transactions interchange will fall into one of four different interchange classifications.  The higher the level, the lower the interchange rate.

• Level 1
• Level 2
• Level 3
• Large Ticket

Level I Credit Card Processing

Level I processing usually refers to transactions that are done between businesses and consumers and includes basic payment details with the least amount of information. That being said, they can also be B2B and B2G transactions. When you process a commercial card without level 3 payment information it automatically clears at level 1, costing you significantly more.

• Merchant Name
• Transaction Amount
• Transaction Date

Level II Credit Card Processing
Level II processing information is similar to level I but has some additional detail. Level III eligible transactions can/will clear at level II if there are some level 3 requirements missing.  Level II interchange lowers your interchange cost by about .50%

Rember, tax exempt transactions are not eligible for the level II savings. The tax amount must between  0.1% and 30% for MasterCard and 0.1%-22% for Visa

• Merchant Name
• Transaction Amount
• Tax Amount (Between 0.1%- 31% for MC and 0.1-22% for Visa
• Customer Code or PO number
• Transaction Date
• Merchant Zip Code

Level III Credit Card Processing

To receive level III interchange rates a transaction must include level I and level II payment detail with the addition of the fields below.

• Merchant Name
• Transaction Amount
• Customer Code
• Transaction Date
• Ship From Postal Code
• Destination Postal Code
• Order Number
• Invoice Number
• Freight Amount
• Line Item Detail of Purchase

To qualify to receive level III interchange rates you need  a payment gateway or technology that can support the additional line item requirements.  Level III payment detail looks like information you would typically find on an invoice.

In addition to the sending level III detail, your processing will need to set you up with a cost plus merchant account. Otherwise your transactions will not clear at the lowest possible rate. I have seen so many businesses set up for level 3 rates but because their merchant account was not set up properly was not get 100% of the benefits.

Previously credit card terminals did not support level III.  This was before Revolution Payments optimization service that can automate level III rates regardless of the payment device, software or ERP.

FYI, if you process authorizations the transaction must be settled within 2 days otherwise it will not qualify for level III interchange

Large Ticket Processing!

Visa Commercial Product Large Ticket

Large ticket interchange rates are a way to save even more on your B2B and B2G credit card transactions. Note: Only transactions that have level III detail included will clear at the high ticket rates. If anything is missing, you will 2.7% to over 3% for the same transaction.

Visa- Purchasing Card-Non GSA / Corporate
transaction greater than or equal to $7,755.56

Visa Purchasing Card-Non GSA Prepaid transaction
greater than or equal to $2,908.00

Visa GSA Purchase Card-Transaction must be greater than $5,557.14.

Industries Not Eligible: Travel and Entertainment – Airlines/Passenger Transport (MCC 3000-3299, 4511), Car Rentals/Auto Rental (MCC 3351-3500, 7512), Hotels/Lodging (MCC 3501-4010,
7011), Passenger Railways (MCC 4112), Cruise Lines (MCC 4411), Travel Agents (MCC 4722) Restaurants (MCC 5812, 5814), High Risk Direct Marketing (MCC 5962, 5966, 5967), and
Truck and Utility Trailer Rentals (MCC 7513).

MasterCard

Transaction amount must be $10,000.00 or
greater.

Industries Not Eligible: Travel and Entertainment – Airlines/Passenger Transport (MCC 3000-3299, 4511), Car Rentals/Auto Rental (MCC 3351-3500, 7512, 7513, 7519), Hotels/Lodging
(MCC 3501-3999, 7011), Passenger Railways (MCC 4112), and Restaurants (MCC 5812).

Have questions about Level I, Level II, and Level III Credit Card Processing then give us a call at 888 790 3450. We are also offering no obligation level III interchange audits. Level III interchange experts for over 15 years.

Almost any processor can set you up to accept government purchase cards however, if your goal is to accept government purchase cards at the lowest possible interchange rate, its very important to make sure your processor understands interchange as it relates to government p cards.

Government Purchase cards qualify at 1 of 3 different interchange levels, level 1, level 2 and level 3. The different levels are based on additional information you include with your transactions.

Accept government purchase cards without level 3 processing information, you will always pay roughly 1% more than the best rate you can receive from a processor.  Level 3 processing was initially created to help the government manage spending/employees using government issued credit cards.  Visa and MasterCard created special level 3 processing interchange rates as a way to encourage government vendors to enter more information (level 3 detail) which showed up on the governments banks statement.

Level 3 processing is similar to information you would find on an invoice, PO#, product descriptions etc. Basically the who, when and how.  Level 3 processing detail does not automatically show up on your customers bank statement.  This only happens when they have a special P-card program set up. As long as level 3 detail is processed with your government purchase cards, and non government commercial transactions, you save roughly 1% on interchange fees.

Insist on Level 3 processing and cost plus pricing.  This will clear your transactions at a lower interchange rate, level 3 interchange rate vs level 1.  Commercial/Purchase cards are the only cards you will accept that have three different interchange rates.

If you have any questions relating to how to accept government purchase cards , about level 3 processing or whether or not your accepting these cards correctly, give us a call

888 790 3450

GSA Vendors

Why pay 2.65% vs 1.85%

to process a Government P-card?

With the many challenges facing contractors today, it’s no wonder so many are relying on their banks or existing credit card processors  to set them up to accept Government P-cards.

It’s regrettable that many in the contracting industry are unaware of the advantages available for accepting these cards correctly

To support acceptance of corporate & Government P-cards, MasterCard & Visa have reduced interchange rates associated with these cards if  Level-3 payment data is included in the credit card transaction.  These special rate can reduce a contractors processing costs by up to 40%.

This savings is available for any size ticket, HOWEVER savings can be further increased for contractors by enrolling in the special GSA Smartpay “Large Ticket” program.  This qualifies your  transactions of $5,984.61 and above at 1.2%

Statics show us that at least 3 out of 5 GSA schedule vendors have not been set up to accept Purchase cards correctly. Most have been set up to accept standard consumer credit cards vs commercial and purchase cards. This is unknowingly cutting into a vendors profit margin, on average by 1%-1.5%

One reason this is often overlooked is that Level 3 processing reclassifies a portion of the interchange fees businesses pay to accept credit cards, that is not related to the rates processors charge.

Interchange goes back to the bank that issued the credit card and amounts to 75%-90% of a businesses total expense for accepting credit cards

Credit card processors receive no incentive for offering you level 3 processing, nor are they required to make sure contractors are properly set up to accept credit cards in the most efficient and economical matter.

Revolution Payments developed technology to help contractors meet the requirements for qualifying for the reduced Visa & MasterCard processing rates.

This new revenue can easily add 1%-1.5% to your bottom line without having to increase your sales volume.

Most processors have the best intentions

Even if your processor has the best intentions and honestly trying to do a good job for you, their inexperience when it comes to setting your account properly to accept Government P-Cards may be driving your costs up.

Setting up a merchant account to accept commercial and government credit cards is different than setting up a traditional retail merchant account.

Questions?  Give us a call at 888-790-4350

Or visit www.revolution-payments.com  and click the Free Rate Quote tab at the top for your confidential analysis and rate review.

You can also email a recent statement to info@revolution-payments.com

Revolution Payments

A leading advocate and Level 3 credit card processor for government contractors and suppliers

Visa and MasterCard use “interchange fees” to determine how much you pay the card issuing banks each time you accept a credit card transaction.

What most  banks and processors  may not have told you is that for B2B, Commercial or government purchases, interchange rates fall into one of 3 interchange categories — Level 1, Level 2, and Level 3 – with 1 being the highest rates and 3 being the lowest.

Revolution Payments offers is a proprietary payment solution, and here’s how it works: For all credit card transactions … whether processed online or entered manually on your PC or mobile … our system automatically attaches details to every transaction that update all your credit card orders to Level 3 interchange rates

On average, businesses that use the Revolution Payments Gateway to process their credit card orders lowers interchange on average by 1.0% to 1.5%.

You could try to manually add the necessary Level 3 details to get interchange rebates to each credit card order you accept. But it’s pretty complex, with over 400 different interchange rates based on industry, method of card acceptance, type of card used, and size of purchase!

The Revolution Payments Gateway automates the Level 3 processing updating of credit card payments – making the complex incredibly simple, with virtually 100% accuracy. There are no hidden fees. Approval and set-up are quick and easy. Customer service and support are unduplicated in the industry.

The first step is to call me toll-free 888-790-4350 for a free, no-obligation rate quote and to see if you qualify for this under-publicized system for reducing your credit card processing fees. Or get your free rate quote online here: www.revolution-payments.com/free-rate-quote-request/