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