January 2026 Processing Rate and Rule Changes

2026 begins with an early set of rate changes.

Each year in April and October, the card brands update processing rates and rules. Sometimes, changes occur at other times of the year as well. Below is a summary of the changes going into effect January 2026 that will impact the broadest number of merchants.

Visa

Interchange and Network Fees

Commercial Enhanced Data Program (CEDP) – US

In April 2025, Visa announced changes to Level 2 and Level 3 interchange qualification for US domestic Small Business and Commercial Card products. Effective October 17, 2025, Visa began validating Level 2 and Level 3 data for accuracy. Transactions that do not contain accurate data will not qualify for Level 2 or Level 3 interchange rates, and any merchant that does not pass accurate Level 2 or Level 3 data will be designated as a "Non-Verified Merchant."

To become eligible for Level 2 and Level 3 interchange rates, a Non-Verified Merchant will need to correct any data errors and go through a verification process with Visa. For more information see our Verisave CEDP Compliance Hub.

Effective January 23, 2026, Visa is increasing the rates for Business Level 2 and qualifying Business Product 3 transactions for Small Business Cards.

After this change goes into effect, Small Business Card Business Level 2 transactions will pay Business Product 1 rates. If Product 3 data standards are met, there will be a 25bps discount off Product 1 rates, but these rates are 65bps higher than the Product 3 rates introduced in October 2025.

CEDP Product 3 rates for Corporate and Purchasing Cards remain unchanged.

Level 2 Retirement (Already in Effect)

Update: Visa retired Level 2 programs earlier than the originally announced April 17, 2026 date. Commercial and Small Business Level 2 interchange programs have been sunset except for Fleet fuel-only Level 2 program which is excluded from CEDP and remains in place. Level 2 no longer applies for Corporate and Purchasing Cards, and the following rates are now in effect:

For a comprehensive guide to preparing for CEDP changes, see our CFO's guide to Visa CEDP and the Level 2 sunset.

Mastercard

Interchange and Network Fees

Effective January 1, 2026, the Undefined Authorization Not Allowed Fee increased to 0.30% with a minimum of $0.05.

This fee applies when authorization requests contain undefined or invalid data elements. Merchants should work with their processors and payment gateways to ensure all authorization requests are properly formatted to avoid this fee.