Beware of Noncompliant CEDP Solutions

Visa's new Commercial Enhanced Data Program (CEDP) is the biggest processing rule change in the last 25 years. It changed the requirements that must be met to receive the lowest interchange rates on Small Business and Commercial Cards.

For years, many merchants achieved discounted interchange rates, which were known as Level 2 and Level 3 rates, by submitting transaction data that was, to put it charitably, creative. Gateways auto-filled data fields. Processors passed dummy invoice numbers. Even though the data was fabricated, it satisfied the technical requirements, and merchants received the interchange discounts.

Why Fake Data Worked—Until Now

Detailed transaction data is important because it helps prevent fraud. Credit card fraud is rampant—according to industry surveys, approximately 80% of organizations experienced payment fraud attempts last year. Real invoice information, item details, purchase order numbers—these create a verifiable trail that makes fraudulent transactions less likely.

Visa's CEDP is intended to eliminate the practice of using "fake data." It requires legitimate transaction data pulled from actual invoices and ERP systems.

The Dangerous Shortcut Some Processors Are Taking

Disturbingly, some processors and gateways have responded to CEDP by submitting randomized fake data in an attempt to achieve discounted interchange for their clients.

This is ill-advised.

Visa has invested billions in fraud detection and data analysis and is using AI-powered audits to verify authenticity. Their systems will catch on and start flagging randomized dummy data the same way they flag repeated or auto-fill values.

The consequences for merchants caught using noncompliant solutions include:

• Loss of interchange discounts retroactively
• Designation as a Non-Verified Merchant requiring a lengthy re-verification process
• Potential fines and penalties for systematic data manipulation
• Reputational risk with your acquiring bank

The Right Path: Legitimate CEDP Compliance

For a merchant, getting compliant isn't quick or easy, but it is achievable, and the effort is worth it. It requires integrating ERP data with payment workflows, testing the connection, validating the inputs, and becoming a Verified Merchant with Visa. Verisave is here to help.

Legitimate compliance requires:

1. Integrating ERP data with payment workflows so real invoice numbers, line item details, and purchase order information flow through to transactions
2. Testing the connection to ensure data is being captured and transmitted correctly
3. Validating the inputs to confirm the data meets Visa's accuracy requirements
4. Becoming a Verified Merchant with Visa through the official verification process

The investment in proper compliance pays dividends beyond just interchange savings. Accurate transaction data also supports better reconciliation, reduces disputes, and strengthens your overall payment infrastructure.

For a detailed look at what the CEDP changes mean for your business, see our analysis of CEDP enforcement and how B2B fees are affected.