Visa’s Level 2 and Level 3 Programs Are Changing: Meet CEDP
Last updated at 10.07.25
A new era of B2B payments has arrived, bringing opportunities. Visa is retiring its long-standing Level 2 and Level 3 interchange programs and introducing the Commercial Enhanced Data Program (CEDP), a modern standard designed to reward merchants and partners who provide accurate, detailed transaction data.
Beginning October 17, 2025, Visa will start validating transaction data under this new program. Merchants and partners who adapt quickly and meet these standards can unlock reduced interchange rates, stronger data transparency, and lasting operational efficiencies. With Level 2 set to sunset in 2026, now is the moment to get ahead and turn compliance into a competitive advantage.
What’s Changing?
Here are the key updates Visa has announced:
Level 3 Data Validation (October 17, 2025) Visa will begin validating all Level 3 transactions before granting lower interchange rates. Merchants and partners will also be charged a 0.05% participation fee on program transactions.
Sunsetting Level 2 (April 2026) Visa will completely retire the Level 2 program. CEDP will become the sole path to interchange savings for B2B payments
What CEDP Means for Merchants & Partners
CEDP raises the bar for transaction data accuracy. Here’s what you need to know:
Stricter Validation Visa’s proprietary algorithm will verify the completeness and accuracy of your transaction data. Placeholders and generic text will no longer qualify.
Verified vs. Non-Verified All merchants and partners will initially be classified as Non-Verified. Only after Visa confirms your data is accurate will you be upgraded to Verified status, which unlocks reduced interchange rates.
Downgrades Inaccurate or incomplete data doesn’t just impact a single transaction; it can cause past transactions to be reclassified and downgraded, resulting in higher costs as we advance.
No New Fields Required Visa is not requesting that merchants and partners send additional integration fields. The focus is on data accuracy, not data volume.
Examples of Visa’s Data Standards
Visa has made clear that “good enough” data will no longer pass validation. For instance, when it comes to the Item Description (item_data#item_description), merchants and partners must provide detailed and meaningful information about the product or service. Using a merchant name, a generic label, or a single character as the description will not meet the new requirements.
Similarly, the Product Code (item_data#merchant_product_code) must reflect a legitimate identifier, such as a SKU, a manufacturer’s code, or a buyer’s product code. Erroneous or irrelevant information, like a merchant category code (MCC) or a card product identifier, will not be accepted. These updates highlight Visa’s commitment to ensuring that transaction data is accurate, descriptive, and useful.
Key Dates to Remember
There are two milestones every merchant should keep in mind. On October 17, 2025, Visa will begin validating Level 3 transaction data for accuracy. Only merchants and partners who submit accurate and complete data will qualify for CEDP rates. Then, in April 2026, Visa will sunset Level 2 entirely, making CEDP the only path to reduced interchange costs.
How Finix Can Help
At Finix, we’re working closely with Visa to ensure our customers are fully prepared for these changes.
If you use Finix’s low-code solutions, you’ll benefit from updates we’re rolling out to pass compliant data to Visa automatically. That said, we still recommend reviewing the data your team enters to confirm that it is complete and descriptive.
For merchants and partners who have built their own integrations, preparation will require a deeper review. You’ll need to audit your data flows to confirm all the necessary fields are being submitted correctly and meet Visa’s new validation standards.
We recognize that these changes may require updates to your integration. Finix is here to help you stay compliant and continue unlocking savings with Visa’s new interchange structure.
Visa’s Commercial Enhanced Data Program represents a new era for B2B payments; one where accuracy and transparency drive savings. Merchants and partners who prepare now will be well-positioned to reduce costs and strengthen their operations, while those who don’t risk incurring higher fees and unexpected downgrades.
Finix is committed to guiding you through every step of this transition. Let’s schedule a time to discuss your integration and ensure you’re ready ahead of October 17, 2025.
Get Ready for CEDP with Finix
Visa’s Commercial Enhanced Data Program isn’t just a compliance requirement; it’s a chance to unlock lower interchange costs and strengthen your payments operations. But preparation is key.
At Finix, we’re here to help you stay ahead of these changes. Whether you’re using our low-code solutions or running a custom integration, our team will guide you through CEDP requirements, ensure your data meets Visa’s validation standards, and position your business to capture every possible savings opportunity.