Visa’s Commercial Enhanced Data Program (CEDP) introduces stricter requirements for Level 2 and Level 3 transaction data. Under legacy programs, merchants could qualify for interchange discounts by submitting placeholder data; CEDP eliminates the workaround. Visa will now use machine learning to verify that data is complete and correct before applying discounts to a merchant’s interchange rate.
What Data Fields Are Now Required Under CEDP?
To qualify for discounted rates, you must include valid information for the following fields:
- Unit cost before discounts
- Discount amount (for the total invoice or individual line items)
- Freight or shipping amount
- Customs or duty amount, if applicable
- Item commodity/product code
- Item description
- Quantity
- Unit of measure (e.g., “each” or “per pound”)
- Line-item totals
- Line-item detail indicator
- Sales tax indicator and amount
Validating CEDP Data
Placeholder data (e.g., blank text, default values, or a string of zeroes) will no longer be accepted.
Line-item math must all add up. For instance, Unit Price x Quantity must match up to the Line-Item Total. Visa will use machine learning algorithms to validate this data after each settlement batch is submitted.
What Happens if Data is Missing or Can’t Be Validated?
If data is wrong, mismatched, or incomplete, the transaction may be downgraded and will not qualify for the reduced processing rate. Merchants are expected to maintain accuracy rates of 90% or higher to retain Verified Merchant status.
If errors are detected after initial approval, Visa can retroactively reclassify it and remove the discount.
Common Errors that Disqualify CEDP Transactions
Error codes on disqualified transactions include:
- Duplicate purchase found
- Source amount does not equal the aggregated value of line-item totals, taxes, invoice-level shipping, or invoice-level discount
- Product code must not be blank
- Destination country code is not a valid ISO code
- Purchase order date is invalid
- Time of purchase is invalid
- Unit of measure must not be blank
- Line-item description is blank/generic
Start Saving More with CEDP-Optimized Transactions
Transitioning to CEDP means cleaning up how you collect and submit transaction data. By ensuring your systems populate these fields accurately, you can protect your discounted interchange rates and avoid retroactive downgrades.
Curbstone helps merchants streamline their data submission processes and stay compliant with evolving payment standards. To start optimizing your processing, contact us today.
