Visa CEDP rates for Product 3 (formerly Level 3) range from 1.75% + $0.10 for Corporate and Purchasing cards to 2.70% + $0.10 for Small Business cards after the January 2026 increases.
Key Takeaways:
- Corporate/Purchasing cards: 1.75% + $0.10 (Verified) vs 2.05% + $0.10 (Non-Verified)
- Small Business cards: 2.70% + $0.10 after January 2026 (+65 bps increase)
- Level 2 now costs MORE than no enhanced data for Small Business cards
- Verified vs Non-Verified gap: 30 basis points = $3,000/month at $1M volume
- Level 2 programs have been retired (earlier than announced); Product 3 or nothing
That range matters. The difference between top and bottom of that spread can mean tens of thousands of dollars annually for merchants with significant B2B volume.
The Commercial Enhanced Data Program restructured commercial interchange into Product 3 tiers when it launched in April 2025. Then January 24, 2026 brought the first major rate adjustment: Small Business card rates jumped 65 basis points.
Current Product 3 Rate Structure (January 2026)
According to Visa's interchange schedules, Product 3 rates vary by card type and merchant verification status.
Corporate and Purchasing Cards
| Fee Program | Verified Rate | Non-Verified Rate |
|---|---|---|
| Corporate Credit Non-Travel Service | 1.75% + $0.10 | 2.05% + $0.10 |
| Purchasing Credit Non-Travel Service | 1.75% + $0.10 | 2.05% + $0.10 |
| Commercial Large Ticket | 1.30% + $35.00 | 1.60% + $35.00 |
These rates remained stable through the January changes. Corporate and Purchasing cards represent the best-case scenario for CEDP participants.
Business Cards (Tiered Structure)
Business cards use a tiered interchange model based on merchant characteristics:
| Tier | Verified Rate | Non-Verified Rate | Criteria |
|---|---|---|---|
| Tier 1 | 1.75% + $0.10 | 2.05% + $0.10 | Large merchants, high volume |
| Tier 2 | 1.85% + $0.10 | 2.15% + $0.10 | Mid-market merchants |
| Tier 3 | 1.95% + $0.10 | 2.25% + $0.10 | Standard qualification |
| Tier 4 | 2.00% + $0.10 | 2.30% + $0.10 | Lower volume |
| Tier 5 | 2.10% + $0.10 | 2.40% + $0.10 | Small merchants |
Your tier assignment depends on processing history and business profile. Most merchants fall into Tiers 2-4.
Small Business Cards (January 2026 Increase)
Small Business cards took the biggest hit in January. These rates apply to cards issued to businesses with under $5 million in annual revenue.
| Fee Program | Previous Rate | Current Rate | Change |
|---|---|---|---|
| Small Business Product 3 | 2.05% + $0.10 | 2.70% + $0.10 | +65 bps |
| Small Business Level 2 | 2.15% + $0.10 | 2.90% + $0.10 | +75 bps |
The 65 basis point increase on Product 3 hurts. But look at Level 2: at 2.90% + $0.10, it now costs more than submitting no enhanced data at all. Visa effectively made Level 2 a penalty rather than a discount for this card category.
The Level 2 Rate Problem
The January changes created an unexpected situation. Level 2 rates for Small Business cards exceeded standard commercial interchange.
| Data Level | Small Business Rate | Cost on $500 Transaction |
|---|---|---|
| No Enhanced Data | 2.65% + $0.10 | $13.35 |
| Level 2 | 2.90% + $0.10 | $14.60 |
| Product 3 (CEDP Verified) | 2.70% + $0.10 | $13.60 |
Read that again. Submitting Level 2 data now costs you $1.25 more per $500 transaction than submitting nothing. The participation fee makes it worse.
This is Visa's way of forcing the market toward Product 3 or out of enhanced data entirely. Level 2 has already been retired (earlier than the announced April 17, 2026 date), so merchants can no longer use it.
Verified vs Non-Verified Rate Differential
Verification status determines whether you get the published Product 3 rates or pay a premium.
| Card Type | Verified | Non-Verified | Monthly Penalty at $1M |
|---|---|---|---|
| Corporate | 1.75% + $0.10 | 2.05% + $0.10 | $3,000 |
| Purchasing | 1.75% + $0.10 | 2.05% + $0.10 | $3,000 |
| Business Tier 3 | 1.95% + $0.10 | 2.25% + $0.10 | $3,000 |
| Small Business | 2.70% + $0.10 | 3.00% + $0.10 | $3,000 |
That 30 basis point gap adds up fast. A merchant processing $10 million monthly in commercial volume pays an extra $30,000 per month without Verified status. Annually, that's $360,000 in avoidable cost.
How Rate Qualification Works
Visa assigns rates based on three factors: card type, data quality, and merchant status.
Card type is determined at the issuing bank. You cannot control whether a customer uses a Corporate card or a Small Business card.
Data quality is measured monthly against CEDP field requirements. Your acquirer receives reports showing compliance percentages by field.
Merchant status (Verified, Non-Verified, Non-Participating) is assigned based on data quality history. Achieving 90% compliance over 30 days earns Verified status. Dropping below resets you to Non-Verified pending review.
The practical reality: you control data quality. That's your lever for rate optimization.
The Fake Rate Promise
Some vendors promise to maintain your pre-January rates through creative data submission. They claim their systems generate compliant data that passes Visa audits, keeping you at lower interchange.
Here's what they don't tell you.
When Visa announced CEDP, the industry assumed the era of fake data was over. The program exists specifically because merchants and processors were plugging in dummy numbers to trigger rate discounts they hadn't earned. Visa closed that loophole with AI-powered validation.
But the fakers adapted. Some now use "randomized" data generators that produce values statistically similar to real transaction data. The numbers look legitimate to basic validation.
Visa's audits keep improving. Machine-generated data has detectable patterns. When those patterns get flagged (and we believe they will), the consequences extend beyond rate adjustments. Program abuse penalties apply.
We've seen this cycle before. Merchants who relied on placeholder data five years ago now face the fallout under CEDP enforcement. The sustainable approach uses authentic data, even when compliance requires real investment.
Rate Impact by Transaction Volume
Understanding your exposure requires mapping rates to your actual volume.
Monthly Cost Comparison (CEDP Verified vs Non-Compliant)
| Monthly B2B Volume | Corporate Card | Business Card Tier 3 | Small Business Card |
|---|---|---|---|
| $100,000 | $1,850 vs $2,150 | $2,050 vs $2,350 | $2,800 vs $3,100 |
| $500,000 | $9,250 vs $10,750 | $10,250 vs $11,750 | $14,000 vs $15,500 |
| $1,000,000 | $18,500 vs $21,500 | $20,500 vs $23,500 | $28,000 vs $31,000 |
| $5,000,000 | $92,500 vs $107,500 | $102,500 vs $117,500 | $140,000 vs $155,000 |
The differential scales linearly. At $5M monthly Small Business card volume, non-compliance costs $15,000 per month or $180,000 annually.
When Product 3 Does Not Make Sense
Not every merchant benefits from CEDP participation. The math depends on your card mix.
If your commercial transactions are predominantly:
- Travel industry MCCs (airlines, hotels, car rentals): Excluded from Product 3
- Restaurant MCCs (5812, 5814): Excluded from Product 3
- Fleet single fuel-only: Excluded from CEDP
For these merchants, the 0.05% participation fee applies with no rate benefit. Opt out of enhanced data submission instead.
Rate Planning After Level 2 Retirement
Update (March 2026): Level 2 programs have been retired earlier than the announced April 17, 2026 date. That rate category no longer exists (except Fleet fuel-only). Merchants must now choose:
Option A: Upgrade to Product 3
- Requires full line-item data submission
- ERP and gateway integration needed
- Captures best available rates
Option B: Submit no enhanced data
- Simpler operationally
- Standard commercial interchange applies
Option A: Upgrade to Product 3 The decision matrix favors Product 3 for merchants with significant B2B volume and the technical capability to submit compliant data. For others, clean exit from enhanced data programs makes more financial sense than partial compliance.
Calculating Your Optimized Rate Strategy
Follow this process to determine your best path:
-
Pull card mix data. What percentage of your commercial transactions are Corporate, Purchasing, Business, and Small Business cards?
-
Assess current compliance. Are you achieving 90% data quality? Check your acquirer's monthly CEDP report.
-
Model the scenarios. Use the rate tables above to calculate cost at Verified, Non-Verified, and Non-Participating status.
-
Factor in implementation cost. ERP integration runs $15,000-75,000. One-time cost against ongoing savings.
-
Make the call. If Product 3 compliance saves more annually than implementation costs, invest. If not, exit enhanced data programs cleanly.
For merchants processing $1M+ monthly in B2B, Product 3 compliance almost always wins the math. The January 2026 rate increases widened the gap between compliance and non-compliance.
Frequently Asked Questions
What is the Visa CEDP rate for Corporate cards? Corporate and Purchasing cards pay 1.75% + $0.10 with Verified status, or 2.05% + $0.10 without. These rates remained stable through January 2026. Corporate cards offer the best CEDP economics.
How much did Small Business card rates increase? Small Business Product 3 rates increased 65 basis points in January 2026, from 2.05% to 2.70%. Level 2 rates jumped 75 basis points to 2.90%, making Level 2 more expensive than submitting no enhanced data at all.
Is Level 2 cheaper than Level 3 for CEDP? No. After January 2026, Level 2 rates for Small Business cards (2.90%) are higher than standard commercial rates (2.65%) and significantly higher than Product 3 (2.70%). Level 2 no longer makes financial sense for any card type.
How much does CEDP Verified status save? Verified merchants save 30+ basis points per transaction compared to Non-Verified. At $1M monthly B2B volume, that's $3,000+ per month. At $10M monthly, it's $30,000+ per month in pure interchange savings.
