As a payments marketing expert deeply entrenched in Visa and Mastercard interchange dynamics, I’m excited to spotlight how medium-to-large businesses can tap into the efficiency and cost savings of the new Commercial Enhanced Data Program (CEDP) to maximize margins and streamline B2B transactions.
What’s Changing with CEDP?
CEDP, launching in phases from April 2025, replaces legacy Level 2 and Level 3 interchange incentive programs. It sets a higher bar for transaction-data quality—think line-item details, taxes, purchase order numbers, and more—to unlock better interchange rates.Priority CommerceNMIStripe Support
Why It Matters to Your Business
- Lower interchange rates.
Businesses that submit clean, verified data can enjoy rate reductions—around 7–10% lower, depending on spend category. For example, some Product 3 rates drop from 1.90% + $0.10 to 1.75% + $0.10, while large-ticket purchases fall from 1.45% + $35 to 1.30% + $35.Merchant Cost Consulting+1 - Minimal participation fee.
There’s a small 0.05% CEDP participation fee per transaction, which is easily outweighed by the overall savings.DefaultMerchant Cost Consulting - Verification unlocks future savings.
Starting October 2025, Visa will validate merchants’ transactional data using machine learning. Verified merchants receive immediate savings; unverified ones may face delays or adjustments.RedbridgeStripe SupportNMI
CEDP Roll-Out Timeline at a Glance
|
Date |
Milestone |
|
April 12, 2025 |
CEDP launches. Participation fee (0.05%) begins. Legacy Level 2/3 start to sunset.Priority CommerceNMIVerisave |
|
October 17, 2025 |
Visa starts merchant verification and applies new, reduced Product 3 rates.RedbridgeStripe SupportNMI |
|
April 17, 2026 |
Legacy Level 2 is fully sunset (except for certain fuel programs).RedbridgePriority Commerce |
How Medium to Large Businesses Can Save
- Ensure rich Level 3 data capture. Your invoicing should include itemized details, quantity, tax, and shipment—not just totals.
- Work with a CEDP-ready processor. Platforms that automate or affirm enhanced data qualify faster—like those offering real-time enrichment.paytrace.netPriority Commerce
- Submit clean data consistently. Clean data submission means faster verification and brand-new interchange rates.
- Track your status. Ask your acquirer or processor if you’re “verified.” If not, you can still qualify for Product 3 rates—though rebates may lag or require adjustment.
Final Word
Through strategic submission of enhanced B2B data and proactive verification, medium-to-larger merchants can turn the CEDP into immediate and meaningful savings. With a small participation fee and major tailwinds from interchange reductions, your bottom line stands to gain—and FortivoPay’s hosted pages and pay-page optimization can help you get there gracefully.