If your business accepts a lot of corporate or government credit cards, a major change is happening in the payments industry. Depending on how you handle transactions, this could either increase your costs—or help you save significantly.
What Is CEDP?
CEDP stands for Commercial Enhanced Data Program. It’s Visa’s new system for determining which B2B transactions qualify for lower interchange rates.
Why Visa Introduced CEDP
For years, Visa offered lower rates through Level 2 and Level 3 processing, as long as merchants submitted extra transaction data like:
- Sales tax
- Invoice numbers
- Purchase order numbers
- Line item details
However, many systems auto-filled this data with generic or inaccurate information just to qualify for lower rates.
While this helped merchants save money, Visa determined that the data wasn’t actually reducing risk—so they created CEDP to fix that.
What’s Changing Under the New Rules
With CEDP:
- Visa will verify the accuracy and completeness of submitted data
- Merchants will be labeled as “verified” or “non-verified”
- Only verified merchants will qualify for the lowest interchange rates
Starting April 1, Visa is officially retiring Level 2 and Level 3 programs, making CEDP the only path to savings for B2B transactions.
How This Impacts Your Processing Costs
- Provide accurate, detailed data → Lower rates (up to ~1% savings)
- Skip or submit incomplete data → Higher rates than before
In short, ignoring CEDP could cost you more than what you were paying under the old system.
Why Virtual Terminals & Integrations Matter
Most physical credit card terminals can’t capture the detailed data required for CEDP.
To qualify, many B2B merchants will need to use:
- Virtual terminals
- Payment gateways
- ERP integrations
- Invoicing platforms
These systems allow you to enter and send the required transaction details properly.
Pro Tip
If you process a high volume of corporate or government cards, now is the time to review your setup. The right system can help you capture the required data without adding a lot of extra work—and unlock real savings.
If you want to start saving up to 1% on your processing fees, let’s take a look at your current setup.
Call Electronic Money Company at 505-296-2847 for a quick review. We’ll help you understand CEDP, set things up correctly, and make sure you’re getting the lowest possible rates.
No pressure—just a simple conversation to see where you can save.
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Other topics you might be interested in: Avoid Costly Mistakes: Download our free report, 5 Mistakes to Avoid When Choosing a Credit Card Processor
