What Merchants Need to Know: Visa’s Updates to Level 2 and Level 3 Pricing

Background: What is CEDP?

Visa launched the Commercial Enhanced Data Program (CEDP) in April 2025 to replace its previous Level 2 and Level 3 interchange incentive programs. Under CEDP, Visa requires merchants to pass complete, accurate, and descriptive line-item data for commercial card transactions. Before qualifying for the discounted interchange fees, Visa validates the data in real time, looking for legitimate data that provides value to commercial cardholders. Merchants that consistently meet these standards are classified as “verified” and qualify for lower interchange rates under the new “Product 3” category. Those who remain unverified pay higher interchange rates.

Why Was the Program Started?

CEDP was originally designed to:

• Help merchants qualify for lower interchange rates by submitting detailed transaction data.
• Support small business and commercial card issuers with better data for expense management and reporting.
• Encourage higher data standards across the payments ecosystem.

Related content: Big Changes to Visa’s Level 2 and Level 3 Incentive Program

What’s Changing in 2026?

Since launching CEDP, Visa has noticed two main issues:

1. Many merchants received CEDP rates without meeting the required data standards.
2. The incentive rate for small business credit cards did not maintain balance across the payments ecosystem.

To address these issues, Visa is making the following changes:

1. Stronger Verification
   • Visa will check transactions more carefully so only those that meet the rules will receive the CEDP incentive rates.
   • Merchants may see extra verification steps and possible delays as Visa checks data quality of data submitted.
2. Interchange Rate Adjustments
   • Effective January 24, 2026: Level 2 and CEDP rates for Small Business credit products will be increased.
   • CEDP rates for Commercial products will not change.

What’s Next?

• April 2026: Level 2 interchange programs will be phased out for Small Business and Commercial credit products.

If You are a Wind River Payments Merchant

If you are a current Wind River Payments customer, there are no actionable steps that need to be taken at this time. If you will be impacted, you should have already heard from your Relationship Manager to discuss how the changes may affect you. We will continue to ensure our customers recieve the lowest rates possible.