Managing a B2B company is already a balancing act. With increasing overhead costs, aging technology, and new customer demands, the last thing you need to see is fee increases on your monthly merchant statement.
But many B2B companies are seeing just that, with many noting that their processing fees have been creeping up since last October. The reason? Visa’s shift to its Commercial Enhanced Data Program (CEDP) has fundamentally changed the way B2B transactions are priced, and many acquirers and processors are still working on changes to comply with the requirements.
As the April deadline for Visa to eliminate the Level 2 tier of B2B transactions approaches, here’s a timely reminder of what has changed, what’s coming next, and how B2B companies can take control of payment processing costs.
What Changed in October?
For years, B2B companies could save money on B2B and B2G transactions by providing "Level 2" or "Level 3" transaction data (like sales tax or PO numbers). Last October, Visa officially replaced the old Level 2/3 program with CEDP.
And while CEDP does effectively change what constitutes Level 2 and Level 3 data (more on that below), perhaps the biggest change that is causing B2B companies to see higher costs, is the fact that the data being submitted for transactions to qualify, is now being validated directly by Visa. Before October, companies could often qualify for lower rates just by filling in the boxes, if you will. There were limited quality checks, so companies that submitted "dummy" data like "123" for a SKU, would see the reduced Level 2 and 3 rates.
That doesn’t work anymore. Visa now uses AI and machine learning to verify that transaction data is accurate and descriptive. If the data is generic or missing, the transaction "downgrades," and companies will pay a higher processing rate.
However, the reverse is also true. When transaction data for qualifying commercial cards is complete and accurate for the purchase, companies are rewarded with lower rates.
A New Pain Point: Being "Non-Verified"
Since the October rollout, industry experts and B2B companies have reported some significant hurdles, with many businesses feeling the pressure of these stricter requirements. Some common issues include:
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Verification Confusion: Many businesses are struggling to understand if they are actually enrolled in CEDP.
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Rising Costs Confusion: Businesses are questioning why their previously qualified transactions are suddenly costing more.
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Visa Rejections: Analysts have noted that even small errors in a product description or tax amount can trigger a "Non-Verified" status from Visa’s AI-based review.
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Operational Friction: Manually entering line-item details for every single invoice/transaction is a time-consuming process that most teams can’t afford.
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The 1% Spike: Industry reports suggest that companies who fail the new verification process can end up paying roughly a full percentage point more in interchange fees than those who are verified.
The reality of CEDP is that there is no formal enrollment process as some might expect. Businesses submitting Level 2 and 3 transaction data are automatically being reviewed by Visa for verified status.
The reviews are ongoing and the end result of being “non-verified,” is that companies are paying more for the same transactions they’ve run for years. And providing incomplete or inaccurate data can now lead to "downgraded” transactions that eat into a company’s profits.
What’s Happening Next Month (April 2026)?
The CEDP transition is entering its final phase. In April, Visa is officially sunsetting the legacy Level 2 program.
Previously, Level 2 was a "middle ground" for savings that required less data to be submitted. Starting next month, that safety net is gone. To qualify for the best B2B rates moving forward, companies must meet the stricter CEDP "Product 3" standards. The good news is that transactions that previously qualified for Level 2 rates are now eligible for the better Product 3 rates that CEDP provides, as long as they include accurate data.
How PayTrace Helps with CEDP Compliance: The Product List Feature
We know that B2B companies don't have time to manually type in product descriptions, unit costs, and quantities for every single sale that goes through. That’s why we built the Product List feature.
Instead of manual work on every transaction, every time, the Product List allows companies to:
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Store Their Product Catalog: Save a list of all items sold—complete with descriptions, SKUs, and more—directly in the PayTrace system.
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Bulk Upload Lists: For companies with hundreds of products or more, the Product List Upload tool lets you import your inventory list via a CSV file in seconds, eliminating the need to enter them one by one.
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Comply with CEDP: When processing a sale, PayTrace uses the Product List to submit the enhanced transaction data that Visa requires.
Using the PayTrace Product List saves companies valuable time and resources, while also supporting the verification process that enables qualification for the lowest possible processing rates.
The Bottom Line
Visa's CEDP is here to stay. As your B2B payment experts, we are committed to continuing to help you submit quality transaction data that helps qualify for the best possible rates under the new program.
The April sunset of Level 2 means that companies that have already seen increased processing fees, could see another increase if they haven’t taken the appropriate steps to meet the new requirements. And companies that may not have yet seen any changes, will likely see increased fees, soon.
Make sure your business is ready by reaching out to our team today or logging into the Virtual Terminal to upload your product list today.
