The CEDP Deadline Concrete Suppliers Missed

At CONEXPO-CON/AGG 2026 in Las Vegas, we asked every aggregates and concrete supplier we met: "Are you CEDP-compliant?"

The overwhelming response was: "What's CEDP?"

Out of dozens of conversations, we didn't find a single supplier who had fully implemented Visa's Commercial Enhanced Data Program—despite the fact that the October 17, 2025 verification deadline had already passed.

This isn't surprising. Visa quietly launched CEDP in April 2025 without the fanfare of previous interchange changes. And most processors didn't proactively inform merchants about the requirements.

The result: Aggregates suppliers are paying 30-40% more than necessary on B2B credit card transactions, simply because they're missing specific data fields on invoices.

Here's what you need to know about CEDP, why it matters for your margins, and how to achieve compliance in 2026.

What Is CEDP (Commercial Enhanced Data Program)?

CEDP is Visa's replacement for the traditional Level 2 and Level 3 interchange qualification system that's been in place for decades.

The Old System: Level 2 and Level 3 Data

Historically, commercial card transactions qualified for three interchange levels:

Product 1 (Highest Cost):

• Basic transaction data only
• Card number, amount, date
• Typical rate: 2.8–3.2%

Product 2 (Mid-Tier Cost):

• Enhanced data included
• Sales tax, customer code, purchase order number
• Typical rate: 2.2–2.5%

Product 3 (Lowest Cost):

• Line-item detail included
• Individual products, quantities, unit costs
• Typical rate: 1.8–2.0%

The New System: CEDP

Starting April 2025, Visa launched CEDP with stricter data quality standards and automated verification:

Key changes:

• Machine learning validates data quality in real-time
• "Verified" vs. "Non-verified" merchant status
• Immediate settlement for verified merchants
• Delayed incentive application for non-verified merchants
• 15 basis point (0.15%) incentive for CEDP-compliant transactions

Why Visa made this change:

Traditional Level 2/3 relied on processors correctly passing data without consistent validation. CEDP uses automated verification to ensure data quality, benefiting:

• Card issuers: Better transaction detail for corporate clients
• Cardholders: Enhanced expense tracking and reporting
• Visa: Reduced disputes and improved data accuracy

Why This Matters for Aggregates Suppliers

CEDP compliance directly impacts your processing costs on every B2B transaction—and for aggregates suppliers, B2B transactions are the majority of volume.

The 30–40% Cost Difference

Example: $20,000 ready-mix concrete order paid by corporate Visa card

Without CEDP compliance (Product 1):

• Transaction amount: $20,000
• Interchange rate: 2.95%
• Processing fee: $590

With CEDP compliance (Product 2/3 equivalent):

• Transaction amount: $20,000
• Interchange rate: 2.10%
• Processing fee: $420
• Savings: $170 per transaction (29% reduction)

Annual Impact

For a concrete supplier processing $5 million annually in commercial Visa cards:

Non-compliant scenario:

• $5M × 2.95% = $147,500 in annual fees

CEDP-compliant scenario:

• $5M × 2.10% = $105,000 in annual fees
• Annual savings: $42,500

That's $42,500 annually you're leaving on the table simply by not submitting specific data fields.

Why Most Aggregates Suppliers Aren't Compliant

During CONEXPO, we identified three common barriers preventing CEDP compliance:

1. Awareness Gap Most suppliers had never heard of CEDP. Processors didn't send notifications (or buried them in monthly statement inserts).

2. Manual Invoicing Many aggregates suppliers still use basic invoicing that doesn't capture required fields (tax amount broken out separately, customer codes, PO numbers).

3. System Limitations Some older payment terminals and invoicing software can't pass Level 2/3 data even if you collect it.

The common misconception: "My processor handles all that technical stuff."

Reality: Your processor can only pass data you provide. If your invoice doesn't include tax amounts separately itemized, CEDP qualification is impossible.

CEDP Timeline: What You Need to Know for 2026

Understanding the rollout timeline helps explain why you're likely non-compliant—and what changes are still coming.

April 2025: CEDP Launch

Visa officially launched CEDP and introduced the CEDP fee structure.

What changed:

• CEDP program became available
• Merchants could begin verification process
• 15 basis point incentive available for compliant transactions

October 17, 2025: Verification Begins

Visa began actively verifying merchant data quality using machine learning.

What this means:

• Every transaction now analyzed for data completeness
• Merchants classified as "verified" or "non-verified"
• Verified merchants receive immediate incentives
• Non-verified merchants receive delayed incentives (if any)

This is the deadline most suppliers missed. By October 2025, Visa expected merchants to have CEDP-compliant systems in place.

April 2026: Level 2 Incentives Sunset (Coming Soon)

This is the critical upcoming deadline.

What happens in April 2026:

• Traditional Level 2 interchange incentives completely eliminated
• Only CEDP-compliant transactions receive preferential rates
• Non-compliant transactions default to highest interchange levels

Translation: If you're not CEDP-compliant by April 2026, you'll pay full Product 1 rates on all commercial transactions going forward.

CEDP Data Requirements: What You Need to Submit

CEDP compliance requires specific data fields on every commercial card transaction. Here's what you must capture.

Required Fields (Minimum for CEDP)

Transaction-Level Data:

• Customer code or business name
• Sales tax amount (separated from base price)
• Purchase order number or reference number
• Customer zip code
• Merchant tax ID
• Summary commodity code

Example: Ready-Mix Concrete Invoice

Non-compliant invoice:

Ready-Mix Concrete Delivery
Total: $20,000

CEDP-compliant invoice:

Customer: ABC Construction (Code: ABC001)
PO Number: PO-2024-1234
Merchant Tax ID: 12-3456789

Ready-Mix Concrete: $18,500.00
Sales Tax (8.1%): $1,500.00
Total: $20,000.00

Ship-to Zip: 78701
Commodity Code: 32731 (Ready-Mix Concrete)

Enhanced Fields (For Maximum Savings)

Line-Item Detail (Product 3 equivalent):

• Item description
• Unit of measure
• Quantity
• Unit cost
• Extended amount
• Product codes

Example: Enhanced Line-Item Invoice

Item 1: 3000 PSI Ready-Mix Concrete
  Quantity: 10 cubic yards
  Unit Cost: $150/yard
  Extended: $1,500.00

Item 2: Delivery/Pumping Service
  Quantity: 1
  Unit Cost: $500
  Extended: $500.00

Subtotal: $2,000.00
Sales Tax (8.1%): $162.00
Total: $2,162.00

Common Data Collection Mistakes

Mistake #1: Tax Included in Base Price

• ❌ Wrong: "Total: $20,000 (includes tax)"
• ✅ Right: "Subtotal: $18,518.52, Tax: $1,481.48, Total: $20,000"

Mistake #2: Missing Customer Code

• ❌ Wrong: Billing to "John Smith"
• ✅ Right: Billing to "ABC Construction" with customer code

Mistake #3: No Purchase Order Reference

• ❌ Wrong: Invoice #12345 with no PO
• ✅ Right: Invoice #12345, PO #ABC-2024-567

Mistake #4: Combined Commodity Coding

• ❌ Wrong: "Construction Materials"
• ✅ Right: "32731 Ready-Mix Concrete, 32732 Aggregates"

How to Achieve CEDP Compliance

Getting CEDP-compliant requires updates to both your invoicing process and your payment processing systems.

Step 1: Audit Your Current Invoicing

Review a recent commercial card invoice and check:

☐ Is sales tax shown as a separate line item? ☐ Do you collect/record customer codes or business names? ☐ Do you capture purchase order numbers? ☐ Is your merchant tax ID included on invoices? ☐ Do you record ship-to zip codes? ☐ Do you use commodity codes for products?

If you checked fewer than 5 boxes, you're likely not CEDP-compliant.

Step 2: Update Your Invoicing Software

Work with your accounting or invoicing system provider to:

Add required fields:

• Customer code field (required)
• PO number field (required)
• Sales tax calculation (separated)
• Ship-to zip code field
• Commodity code dropdown

Configure tax handling: Most systems can calculate tax but need configuration to:

• Show tax as separate line item
• Break out state vs. local tax (if applicable)
• Apply correct tax rates by delivery location

Step 3: Configure Payment Processing Integration

Your payment system must be able to:

Receive CEDP data from invoices:

• API connection between invoicing and payment systems
• Automatic data mapping (invoice fields → CEDP fields)
• Real-time data validation before transaction

Pass data to Visa network:

• Gateway supports Level 2/3 data transmission
• Processor is CEDP-enabled
• Terminal firmware updated (if using physical terminals)

Verify this by asking your processor:

1. "Is our account enabled for CEDP?"
2. "Can our current system pass Level 2/3 data?"
3. "What fields are required for our industry?"

Step 4: Train Staff on Data Collection

Your team handling orders and invoicing must:

Always collect:

• Customer business name and code
• Purchase order number (even if customer doesn't provide—create reference)
• Delivery/ship-to zip code
• Proper product descriptions (not just "materials")

Sample training scenario:

Incorrect: Customer calls, orders "10 yards," you invoice as "Concrete - $2,000"

CEDP-compliant: Customer calls, you ask:

• "What's your business name and PO number for this order?"
• "Delivery address and zip?" Then invoice as: "3000 PSI Ready-Mix Concrete, 10 CY, delivered to 78701, PO #ABC-123"

Step 5: Monitor CEDP Qualification Rate

Request monthly reports from your processor showing:

CEDP metrics:

• Total commercial card transactions
• CEDP-qualified transactions
• Qualification percentage
• Average interchange rate (should decrease as qualification improves)

Target: 80%+ CEDP qualification within 90 days of implementation

If you're below 80%, common causes are:

• Missing tax amount on some invoices
• Incomplete customer codes
• PO numbers not being captured consistently

Verified vs. Non-Verified Merchant Status

Visa classifies merchants into two CEDP categories based on data quality consistency.

Verified Merchants

Requirements:

• 80%+ of transactions CEDP-compliant
• Consistent data quality for 90+ days
• All required fields properly formatted

Benefits:

• Immediate interchange incentives (applied to transaction)
• Daily settlement at discounted rates
• Lower dispute rates
• Enhanced merchant reputation

Non-Verified Merchants

Characteristics:

• Less than 80% CEDP compliance
• Inconsistent data quality
• Recently started CEDP implementation

Limitations:

• Delayed incentive application (if eligible)
• Manual review required for incentives
• Higher effective rates until verified
• May face qualification uncertainty

How to achieve verified status:

Most aggregates suppliers can reach verified status within 3-4 months by:

1. Implementing proper invoicing (month 1)
2. Training staff on data collection (month 1-2)
3. Monitoring and adjusting processes (month 2-3)
4. Achieving 80%+ compliance consistently (month 3-4)

What Happens If You Don't Become CEDP-Compliant

Starting April 2026, the consequences of non-compliance become significantly more expensive.

Before April 2026 (Current State)

Non-compliant merchants still receive:

• Some Level 2/3 benefits (if data partially complete)
• Blended qualification across transactions
• Gradual incentive reduction

Effective rate: 2.5%-2.8% (depending on partial data quality)

After April 2026 (Post-Sunset)

Non-compliant merchants will pay:

• Full Product 1 interchange rates
• No Level 2/3 benefits
• Maximum commercial card rates

Effective rate: 2.9%-3.2% on all commercial transactions

Annual cost increase example:

For $5M in commercial card volume:

• Current (partial compliance): $137,500/year
• Post-April 2026 (no compliance): $157,500/year
• Additional cost: $20,000/year

CEDP and Product 2/3 Optimization Together

CEDP compliance is part of a broader fee optimization strategy that includes traditional Level 2/3 data optimization.

The complete approach:

1. CEDP compliance (15 basis points = 0.15% savings)
2. Product 2 qualification (50-80 basis points = 0.5-0.8% savings)
3. Product 3 line-item detail (80-120 basis points = 0.8-1.2% additional savings)

Combined savings potential:

• Starting rate: 2.8%
• After CEDP + Product 2/3: 2.0%-2.2%
• Total reduction: 0.6-0.8% (21-29% savings)

On $5M volume: $30,000-$40,000 annual savings

Frequently Asked Questions

Q: Does CEDP only apply to Visa cards?

Yes, CEDP is a Visa-specific program. However, Mastercard has similar Level 2/3 data requirements, so implementing CEDP compliance generally satisfies Mastercard's requirements as well.

Q: Will my processor automatically make me CEDP-compliant?

No. Your processor can only transmit data you provide. If your invoices don't include required fields, your processor cannot pass CEDP data even if their systems support it.

Q: Can I become CEDP-compliant without changing processors?

In most cases, yes—if your current processor supports Level 2/3 data transmission. However, some legacy processors may require you to upgrade systems or switch to a CEDP-enabled processor.

Q: What if my customers don't provide purchase order numbers?

Create internal reference numbers. As long as you have a unique identifier linking the payment to an order/delivery, this satisfies the PO requirement.

Q: Does CEDP apply to small transactions under $1,000?

CEDP benefits apply to commercial card transactions of any size. However, the percentage savings are more impactful on larger transactions. On a $500 transaction, 0.6% savings = $3; on a $20,000 transaction, 0.6% savings = $120.

Key Takeaways

The October 2025 CEDP verification deadline has passed, but it's not too late to achieve compliance and capture savings starting now.

What we learned at CONEXPO:

• 95%+ of aggregates suppliers had never heard of CEDP
• Most are unknowingly paying 30-40% more on B2B transactions
• Processors aren't proactively helping merchants achieve compliance
• April 2026 deadline will eliminate remaining Level 2 benefits

Next steps before April 2026:

1. Audit your current invoicing (do you collect required fields?)
2. Check processor CEDP capability (can your system pass the data?)
3. Update invoicing templates (add customer codes, PO, separated tax)
4. Train staff on data collection (make it standard procedure)
5. Monitor qualification rate (target 80%+ within 90 days)

Or: Get a 15-minute review to understand your current CEDP status and create a compliance roadmap specific to your business.

The aggregates industry operates on tight margins. Leaving $30,000-$40,000 on the table annually because of missing invoice fields isn't just inefficient—it's unnecessary.

Related Articles:

• The $143,000 Mistake: Why Aggregates Suppliers Are Afraid to Surcharge (And How to Do It Right)
• How Non-Compliant Surcharging Gets Aggregates Suppliers Fined by Visa and Mastercard
• Why Your Processing Statement is Designed to Confuse You (And What to Look For Instead)
• How Aggregates Suppliers Can Reduce Credit Card Processing Fees

Ready to achieve CEDP compliance? Get a 15-minute compliance review to identify what fields you're missing and create a 90-day implementation plan.