CEDP stands for Commercial Enhanced Data Program, which is the new program Visa is launching to ensure that quality data is submitted for business and government transactions to qualify for better interchange rates. 

As part of CEDP, merchants must now verify that they are submitting quality data before their transactions will be eligible to qualify for the reduced rates.

Visa will now use machine learning to verify merchants and determine if they are sending quality transaction data. Once verified by Visa, a merchant’s transactions will be eligible for the reduced interchange rates. 

Visa will also continue monitoring data quality, and if Visa determines that a merchant’s transaction data quality no longer meets the requirements, merchants may no longer qualify for the reduced rates.

Yes, any merchant who changes their Merchant Service Provider or processor will need to go through the verification process with Visa again.

The current Level 2 and Level 3 programs focus on whether data is present, rather than ensuring that quality data is present. CEDP is designed to reward merchants who pass quality data with their transactions. 

Visa CEDP will increase the scope of transactions that qualify for Level 3 processing rates, and will eliminate the Level 2 tier of rates in April of 2026. (Mastercard Level 2 will remain at this time.)

The original date the changes were to go into effect was April 2025, however, that has been extended to October 2025. 

Visa transactions only at this time. 

PayTrace automatically identifies what type of transaction it is, based on whether payment is made with a consumer card or a Level 3 eligible card. If the customer uses a consumer card, our system will recognize that and won’t request additional data.

PayTrace recognizes what type of virtual card is being used (consumer card or Level 3 eligible card). If the card falls within one of the Level 3 programs, then the transaction will require all of the necessary interchange data required to comply with CEDP.  

Please review the PayTrace API Quick Reference Guide at the bottom of this page for information around what Visa is expecting regarding the required data elements. We will continue to update this guide as more details become available, so be sure to check back for the latest update.

The key feature we are releasing to help with submitting quality transaction data is the new PayTrace Product List feature. This feature will allow merchants to enter their full catalog of products. The data from the custom product lists will help to submit enhanced data with each transaction, and will help Visa verify that the information being submitted is accurate and of good quality.

The Enhanced Data page of the Virtual Terminal and the associated Product List feature allow merchants to input product and tax information that will help to submit enhanced transaction data to Visa and other card brands.

The goal of the new features is to help merchants submit quality transaction data and comply with Visa’s new Commercial Enhanced Data Program (CEDP) requirements.

This feature is not yet available but is prioritized for an upcoming release.

At this time, product lists can only be created in the Virtual Terminal. API support is planned for a future release.

No, there is no user-level permission for this feature.

These features are available to all users on an account who have permission to edit merchant information.

Yes.

The product list allows you to search for products on your list and add new ones. You can also edit existing products and change their priority by dragging and dropping them.

For each product, you'll need to enter a product label, a code, a commodity code, a unit of measure, and a cost per unit.

With the new CEDP requirements, we know that Visa’s large data set models will be looking for more detailed product information. We recommend using the new custom product lists feature to provide detailed product information.

The product lists will use tax rates based on the billing and/or shipping zip code provided in the transaction. There will still be an option for merchants to mark their company as tax exempt, however, that may impact whether the merchant qualifies for reduced rates. Visa recommends providing a tax between 0.1 and 22% or designating the transaction as tax exempt.

No, you are responsible for entering this information correctly.

Consistent with our current functionality, the transaction number will be used, if a PO is not provided.

PayTrace will populate the destination zip code with the billing zip code or the shipping zip code, if available.

PayTrace will address the Visa requirements for CEDP compliance, regardless of how a transaction is submitted. Merchants will not need to provide updates on a per-transaction basis. 

Yes, this can be accomplished by working with your Merchant Service Provider (MSP) or reseller. PayTrace needs to review the Visa CEDP Quality Data reports in order to assess whether merchants are submitting all required fields. Your MSP should have access to this information and can submit it to PayTrace for review at visacedp@paytrace.com.

PayTrace does not have access to the Visa CEDP Quality Data reports. Merchants will need to work with their Merchant Service Provider (MSP) or reseller to review the reports and identify transactions that are not meeting the requirements.