Visa’s recently announced Commercial Enhanced Data Program (CEDP) can help reduce processing rates for participating merchants in the U.S. In this blog, we will explain CEDP and how it can benefit your business.
What is Enhanced Data?
Enhanced Data (also known as Level 2 and Level 3 data) was introduced decades ago to provide commercial card program managers with insights into the products and services that were being purchased with credit cards.
How is Enhanced Data used?
Corporate end-users can import Enhanced Data into their backend systems as well as deliver data directly to endpoints. This enables automatic transaction expense reconciliation, providing the ability to scan for cardholder misuse or abuse, gain insights to adjust corporate policies and provide information to assist with card program auditing.
What was being done before CEDP?
In 2020, the Visa Data Quality Program (VDQP) was launched, which began to validate the enhanced data received with commercial transactions against the published data field requirements. The new CEDP replaces the VDQP program.
What does CEDP do?
CEDP takes this data to a higher level by incorporating machine learning to assist with validating the quality of the enhanced data provided by commercial transactions. Merchants that provide accurate enhanced transaction data can achieve Interchange Incentives.
What are Interchange Incentives?
Interchange Incentives are rewards to merchants for the accuracy of the enhanced data. Accurate data improves the overall quality of the data within the ecosystem, which provides value to B2B clients.
What are the rewards of CEDP?
Small business and commercial merchants who submit accurate and validated Level 3 commercial card data will receive rate reductions:
- Commercial Fuel Product 3 will be reduced from 1.90% + $0.10 to 1.75% + $0.10
- Corporate Non-Travel Product 3 will be reduced from 1.90% + $0.10 to 1.75% + $0.10
- Purchasing Non-Travel Product 3 will be reduced from 1.90% + $0.10 to 1.75% + $0.10
- Corporate Large Ticket will be reduced from 1.45% + $35 to 1.30% + $35
- Purchasing Large Ticket will be reduced from 1.45% + $35 to 1.30% + $35
What are the benefits of CEDP?
The program will help some small business and commercial merchants in the U.S. by reducing processing fees.
Is this an optional or mandatory program?
It is optional.
When does the CEDP go live?
The program will go live in October 2025.
In our next blog, we will take a deeper dive into the CEDP and what it means to your business.
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