Why use CEDP with Cybersource

  • Maximize your B2B transaction value with enhanced data processing capabilities 
  • Lower Costs: Reduce interchange fees
  • B2B Optimized – Designed specifically for business-to-business payment scenarios
  • Easy Integration – Seamless implementation through Cybersource REST APIs

Key Dates

April 12, 2025 – Visa CEDP launches

October 17, 2025 – Data validation and merchant verification begins; new rates take effect

Jan 24, 2026: Visa increasing Product 3 & L2 interchange rates for Business credit cards

April 17, 2026 – Legacy Level 2 programs sunset 

Boarding guide

Key Benefits

Compliant transactions receive deeper incentives vs existing programs (L3/LTI)*
Note: Deeper incentives only apply to L3/LTI transactions. L2 transactions continue to receive L2 rates until April 2026.

Supported Processors

 

Processors compliant with L2/L3 are supported

Merchants

 

To stay compliant with CEDP and receive interchange incentives, merchants should ensure that their enhanced data is accurate and complete. This includes providing clear item descriptions, accurate subtotals, and confirming that all line items add up to the total transaction amount.

 

Acquirers

 

•Must support Visa CEDP flag and updated data formats.

•Responsible for submitting enhanced data and managing merchant verification.

•Must process adjustment transactions (TC20/TC10) for interchange corrections.

CEDP program benefits

Eligible Products

All U.S. Business & Commercial Credit Cards

Data Requirements

Both tax and invoice-level data required for all (former L2 & L3)

 

Incentives & data quality checks

Periodic  adjudication; incentives tied to quality
Verified merchants receive incentives at settlement

Why CEDP

Interchange incentives to align with the quality of data for commercial transaction data.

 

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  • Commercial Cards are business-focused payment cards issued on the Visa network that allow companies to manage expenses, pay suppliers, and control employee spending. They are distinct from consumer credit or debit cards because they include tools designed specifically for business operations, reporting, and financial oversight. Businesses use commercial cards to make purchases on behalf of the company or small business. Examples include Corporate, Purchasing, or Business Credit cards.
  • Enhanced data, also known as Level 2 and Level 3 data, provides more detailed information about a transaction beyond the basic transaction amount and date. This can include: 
    • Level 2 Data: Sales tax amount, customer code, and invoice number. 
    • Level 3 Data: Line-item details (unit cost, quantity, product code, description), freight/shipping amount, invoice-level discounts, and other detailed purchasing information. This data is crucial for corporate and government entities for expense reconciliation, auditing, and managing their card programs. 

Visa CEDP was introduced to further enhance the quality of commercial transaction data. It replaces older programs like Visa's Level 2, Level 3, and Large Ticket (Non-GSA) interchange programs. By validating data accuracy using machine learning, Visa aims to provide better insights for card program managers and streamline transaction reconciliation for businesses.

The main benefit for merchants who participate and consistently submit accurate enhanced data is the potential for reduced interchange rates. Merchants can qualify for lower processing fees on eligible B2B and B2G transactions. This program also promotes better data quality, which can improve reconciliation processes for their commercial clients.

Visa CEDP is primarily for U.S. domestic Small Business and Commercial Credit product transactions. Merchants who process payments using these types of cards and are capable of submitting Level 2 and Level 3 data are eligible to participate.

The program launched on April 12, 2025, with the participation fee applied from that date. The new Visa CEDP interchange incentives and official VCS transaction data validation began on October 17, 2025. For L2 transactions , qualifying data automatically brings the transaction into Visa CEDP and earns L2 rates till Apr 2026 regardless of the Visa CEDP flag. For Level 3 (now called Product 3) and large ticket transactions, the Visa CEDP flag must be set for the merchant to be assessed for the incentive rate. 

No, certain transactions like Fleet fuel-only Level 2 and GSA Government Large Ticket transactions are excluded from Visa CEDP.

Visa CEDP will replace the existing L2, L3 and LTI Program with more comprehensive invoice data requirements for procurement spending, Fleet purchase, T&E spend, shipping and courier services etc.

To qualify for the interchange incentive on eligible small/medium business (SMB) and commercial cards, your merchant services provider(s)must set the Visa CEDP flag onL3 and Large Ticket transactions in addition to supplying complete and accurate data. Your agreement with your merchant services provider determines how the interchange incentive is handled.

Yes, if your merchant services provider permits, you can select transactions for Visa CEDP submission. However, the best practice and most streamlined process is to supply complete data on all SMB, Commercial, and large ticket transactions. If your merchant services provider allows participation in interchange incentives, this approach will allow you to earn interchange incentives on more transaction volume.

No, the data must be supplied with the transaction.

CyberSource as a gateway brings in value add & we will be using the best logic to derive some of the data internally. This is based on the data that you are already populating & that's why we don't need any new fields.

Your merchant services provider receives monthly reports summarizing data quality for your organization. Your processing statement may also provide helpful information. For example, if you are seeing a significant number of Standard transactions, it may indicate a problem in qualification.

To ensure compliance and qualify for the lower rates, merchants should:

1.Ensure their systems can capture and transmit accurate Level 2 and Level 3 data.

2.Address any data quality errors identified by Visa / acquirer.

3.Verify that line-item arithmetic (total amount, unit cost, quantity, tax, shipping, discounts) is accurate. 

4.Populate all required data fields correctly (e.g., proper format for dates, product codes, descriptions).

  • Participant Merchants: These are Merchants that are currently participating in one of the enhanced data programs L2/L3/Generic Fleet. Participation is indicated if the Merchant has had at least one transaction within the reporting period with a Fee Program Indicator (FPI) of 156, 173, or 271. The report would include the Merchant’s card acceptor ID, and any error codes associated with their transactions.
  • Potential Interchange Opportunities: These refer to Merchants who are currently sending some amount of enhanced data with their transaction but have some errors and are not yet participating in the enhanced data program incentive. By improving the quality of their data, these Merchants may have the opportunity to benefit from interchange improvements. Interchange fees are the fees charged by card-issuing banks during a credit or debit card transaction. Reducing errors can potentially lower these fees, thus reducing the cost of card acceptance.

Yes, each item or service associated with the transaction should be represented separately in a Level 3 data format. In this case, each item or service would be documented in a separate TC50 PURCHL Line-Item Detail record.

Yes, the tax amount is indeed a necessary component in qualifying for Level 3 transactions.