July 23rd, 2025

Effective October 18, 2025 Visa is making changes to its commercial card interchange programs for enhanced data. These changes are designed to improve data quality and streamline interchange incentives for level 2 and level 3 transaction types (now referred to as “product 2” and “product 3” transactions). If you participate in these programs, your ability to qualify for the most favorable rates will depend on the quality of the data you submit.

What is Level 2 / Level 3 Data?

Traditionally, Level 2 and Level 3 interchange programs have allowed businesses to realize interchange savings by providing enhanced transaction data for transactions initiated on eligible commercial cards, such as Corporate, Purchasing, and Business Credit cards, used for company purchases.

Level 2 (L2) transactions include sales tax information.
Level 3 (L3) transactions include product and line-item details from the corresponding invoice.

What changes is Visa making to Level 2 / Level 3?

On October 18, 2025, Visa’s existing Level 3 program will be replaced with the new Commercial Enhanced Data Program (CEDP) and new Product 3 interchange rates.
The core of the CEDP is to ensure the exchange of high-quality, invoice-level data over the network.
Visa will conduct daily data quality reviews on all eligible transactions and perform recurring merchant data quality verification.
While the underlying data field requirements for commercial level 2 and level 3 data will not change, their accuracy and completeness will be subject to stricter validation.
New interchange rate modifications associated with CEDP will become effective.

CEDP at a Glance

To evaluate data quality, Visa will utilize AI/ML tools to verify criteria are met for individual transactions submitted with the CEDP indicator (populated by Tabapay). Visa’s tools will also review transactions in aggregate to assess the use of repeated or generic data. If a transaction fails to meet standards, it will be downgraded to a level 1 transaction.

Preparing for CEDP

Checklist for clients currently sending product 2/product 3 data with Tabapay:

Reach out to your account manager to confirm that you would like to continue sending product 2/product 3 transactions to Visa with Tabapay.
Schedule a transaction review call with your account manager to discuss data quality feedback from Tabapay.
Complete verification with Visa through Tabapay by submitting transactions for final review.

Please note that enrollment in CEDP is not restricted to the October deadline although it is highly recommended.

FAQs

What data do I need to provide to send product 2 and product 3 transactions?

Please see the Level 2 and Level 3 page on our developer portal.

I’m interested in sending level 2/level 3 data with Tabapay but I don’t currently – what are my next steps?

Review the participation requirements for the program and confirm you meet the criteria.

Contact your account manager to express your interest or email [email protected].

What can I do to become a verified merchant?

Visa has asked for 500 sample transactions to evaluate the data quality of a merchant.

For clients who are currently sending level 2/level 3 data through Tabapay we will send these transactions to Visa on your behalf ahead of the October implementation date for review.

If you are not currently sending level 2/level 3 data through Tabapay please reach out to your account manager for next steps.

If a merchant does become verified, will Visa still review transactions for data quality?

Yes, Visa will still spot check using AI/ML for data quality. Verification status can be revoked and reinstated.

How are the fees associated with Visa Level 2/Level 3 changing?

Visa will assess a 5 basis points (bps) fee for all CEDP-processed transactions. This fee applies to all Level 2 and Level 3 Commercial transactions (Corporate, Purchasing, Business) and to all transactions where CEDP is requested, regardless of whether they qualify for optimal interchange or are reclassified.

How will the interchange rates change on October 18, 2025?

For the U.S. Region, several existing Visa Corporate and Purchasing credit fee programs are being rebranded and will have updated rates:

Visa Commercial Credit – Fuel, Product 3: Rebranded from "Commercial Credit – Fuel, Level 3". The rate will change from 1.90% + $0.10 to 1.75% + $0.10.
Visa Corporate Credit – Non-Travel Service, Product 3: Rebranded from "Corporate Credit – Non-Travel Service, Level 3". The rate will change from 1.90% + $0.10 to 1.75% + $0.10.
Visa Purchasing Credit – Non-Travel Service, Product 3: Rebranded from "Purchasing Credit – Non-Travel Service, Level 3". The rate will change from 1.90% + $0.10 to 1.75% + $0.10.
Visa Commercial Credit Large Ticket: This program will see its rate change from 1.45% + $35.00 to 1.30% + $35.00.

New Business Credit Product 3 Fee Program: This is a new program impacting Visa Business credit purchase transactions that provide Level 3 data. It introduces five tiers with new rates:

Business Credit Product 3 – Tier 1: 1.75% + $0.10
Business Credit Product 3 – Tier 2: 1.90% + $0.10
Business Credit Product 3 – Tier 3: 1.95% + $0.10
Business Credit Product 3 – Tier 4: 2.05% + $0.10
Business Credit Product 3 – Tier 5: 2.10% + $0.10

How does a merchant’s verification status impact interchange?

Only verified businesses will receive Product 3 rates at the time of capture. Visa continuously verifies businesses based on the quality of their submitted line item data. If an unverified merchant sends Level 3 data with the CEDP indicator, they will initially be assessed at card-present or card-not-present rates. However, they may receive a lagged interchange adjustment if their data quality is deemed sufficient by Visa.

How will the interchange fees appear in my reporting?

If you are a verified merchant, Visa will automatically charge the new discounted rate.

If you are an unverified merchant, Visa will charge the level 1 interchange rate, then evaluate the transaction data to see if it qualifies. After 10-15 days, if the transaction qualifies for level 2/level 3, an exception will be posted in the Tabapay exception report and Tabapay will pass on the rebate for the interchange difference. Please look for the "CEDP Lagged Interchange" exception description in the report.

Can you provide an example of a field that will have enhanced scrutiny?

The "Item Description" field will be reviewed using ML to ensure the field text is sufficiently specific. This field cannot be blank, contain a single character, or contact merchant name.

Repeating the same text in "Item Description" across transactions may also flag transactions to be ineligible for the incentive.

If the tax amount is provided, it must represent the actual amount collected at the time of the transaction; tax estimation is not allowed. For U.S. transactions, when submitted on taxable non-fuel commercial card transactions, the local tax amount that is greater than zero must be between 0.1% and 22% of the source amount.

Will Mastercard’s level 2/level 3 process also be changing?

No. These changes are a new program Visa is launching; the process for submitting level 2/level 3 transactions to Mastercard will remain the same. Mastercard reviews data quality upon receipt of flagged transactions and determines whether or not to grant level 2/level 3 rates. More details regarding Mastercard can be found here on our developer portal.