A preview of the changes coming to help qualify transactions for reduced Level 3 rates under Visa’s new Commercial Enhanced Data Program (CEDP)
As previously posted, Visa has announced its new Commercial Enhanced Data Program (CEDP). The goal of the program is to improve the quality of the data that is submitted to qualify B2B and B2G transactions for discounted processing rates.
Our team has been working closely with Visa and the processing networks to ensure our platform is in compliance before the new program goes into effect. As your B2B payment experts with more than 20 years of experience in helping merchants qualify for Level 2 and 3 rates, we are committed to continuing to help merchants submit quality transaction data that helps qualify for the best possible rates under the new program.
So let’s take a look at what’s changing.
New Merchant Verification Process
The first big change is that Visa will now use machine learning to verify merchants and determine if they are sending quality transaction data. Once verified by Visa, a merchant’s transactions will be eligible for the reduced interchange rates. Visa is using a 30-day “look-back” period to evaluate the data. So merchants may see a difference in the qualification level while going through the verification process.
Visa will also continue monitoring data quality, and if Visa determines that a merchant’s transaction data quality no longer meets the requirements, merchants may no longer qualify for the reduced rates.
PayTrace will continue to submit the fields required for CEDP on behalf of our merchants to help them qualify for the reduced interchange rates, but is also introducing new features to help ensure the accuracy and integrity of the information submitted.
New Product Lists
The key feature we are releasing to help with submitting quality transaction data is the new PayTrace Product List feature. This feature will allow merchants to enter their full catalog of products. The data from the custom product lists will help to submit detailed enhanced data with each transaction, and will help Visa verify that the information being submitted is accurate and of good quality.
We will also create standard product lists that are based on a company’s Merchant Category Code (MCC). The goal of these standard lists is to help streamline the data process and save merchants time. Merchants can either opt to use the standard product lists, or create their custom product lists based on their own specific products and services.
As the B2B payment experts, PayTrace will continue to enhance our solutions to help merchants qualify for Level 3 interchange rates with Visa and streamline the verification process.
Next Steps
The new product list feature is expected to be available to merchants in August of this year. Once released, we will communicate to all of our partners and merchants encouraging them to enter their full catalog ahead of the October date that Visa has communicated for CEDP. So keep an eye on your email inbox and subscribe to our blog to stay informed.
Where to go with questions
As the new program is rolled out, we're here to help ensure our merchants are sending quality data to the networks to help qualify for the best B2B rates, and we will continue to provide updates to our partners, integrators, and merchants. But as each processor’s participation and enforcement of CEDP may vary, please first check with your Merchant Service Provider and/or processor with any questions.
