To reduce credit card processing fees under Visa’s new Commercial Enhanced Data Program (CEDP), merchants must provide clean, complete, and verifiable transaction data when submitting batches for settlement.
Under legacy programs, data was not validated; dummy data could slip through the cracks and qualify merchants for Level 2 / 3 processing discounts. CEDP tightens the rules; merchants can only receive discounts when their submitted data passes Visa’s validation checks.
To make sure you qualify for the lowest possible processing rates under CEDP:
1. Audit Your Current Transaction Data
Start by reviewing how you’re handling Level 2 and Level 3 data. Ask your processor for your Transaction Detail Report. This will provide detailed transaction-level data; highlight invalid entries; and provide CEDP-specific error codes. Check for missing fields, placeholder values, or patterns in declined transactions. This will show you where your current approach is falling short of new CEDP standards.
2. Confirm Your Technical Setup
If your ERP or POS already supports Level 3 transactions, it will likely support CEDP, though some configuration changes may be needed.
Get started by:
- Talking with your software provider about any required system updates
- Reviewing declined transactions and error codes with your acquirer
- Fixing any submission gaps before asking your acquirer to enable your CEDP flag
3. Submit Complete and Accurate Level 3 Data With Each Settlement
If you’ve participated in legacy Level 2 or Level 3 programs, you’re already familiar with the required data fields. (Find a refresher here.)
Expect Visa to start verifying this information when you send it in. Eliminate dummy data and train your finance and IT teams on any necessary procedures to keep data consistent and complete.
4. Maintain Verified Merchant Status
You don’t have to submit an application to become a Verified Merchant. Visa will assign your organization verified status when at least 90 percent of your qualifying transactions over a rolling 30-day period pass verification.
If you become un-verified, you will automatically become re-verified when your quality scores go back above the 90 percent threshold.
5. Monitor and Improve Data Quality
CEDP doesn’t typically require changes to your reporting cycles, but frequent reconciliation helps ensure you’re capturing every available discount and avoiding post-settlement reclassifications that can eat into savings. Regularly audit your transaction data to identify inaccuracies and take action when needed to protect your Verified Merchant status.
6. Prepare for the Sunset of Level 2 Program
Visa will retire their Level 2 interchange program in April 2026. After that, Level 3 CEDP data will be the only path to interchange discounts for B2B transactions. Transitioning now protects you from unexpected increases down the line.
Get Started with CEDP
The new rules are stricter, but the opportunity to save is substantial.
Curbstone can help you:
- Audit your current transaction data
- Transition away from legacy Level 3 processing
- Align with CEDP standards to capture maximum discounts
Contact us when you’re ready to get started.
