Commercial Enhanced Data (CEDP) Optimization
If your business accepts commercial, corporate, or purchasing cards, you are likely paying interchange rates 30–60% higher than necessary.[1] Providing verified invoice-level data — once called Level 2 and Level 3 processing — can reduce those rates by up to 40%.[2] This guide explains exactly how the system works, what changed when Visa introduced the Commercial Enhanced Data Program (CEDP), and how to implement it correctly.
What Is Level 2 and Level 3 Data?
Every card transaction carries data. The card networks classify this data into three levels based on how much detail is included. The more detail you provide, the lower the interchange rate you qualify for on commercial card transactions.
Standard Transaction Data
The baseline data every card transaction carries: merchant name, transaction amount, date, and card number. This is what appears on a consumer's credit card statement. Every transaction qualifies at Level 1 by default, and it receives the highest (most expensive) interchange rate for commercial cards.
Summary Enhanced Data
Adds transaction-level summary fields on top of Level 1: the sales tax amount, customer code (like a PO number), and the merchant postal code. This gives the card-issuing bank enough information to verify the purchase was tax-compliant and linked to a business account. Level 2 qualification alone can reduce interchange by 0.30-0.50%.
Line-Item Detail Data
The most detailed tier. Includes everything from Level 2 plus full line-item detail for every product or service on the invoice: item description, quantity, unit of measure, unit cost, commodity code, extended amount, and discount applied. Level 3 gives issuing banks complete audit visibility and qualifies for the deepest interchange discounts — reductions of 0.50-1.00% or more compared to Level 1 rates.
Required Data Fields by Level
The specific fields required for each level are defined by the card networks. Missing even one required field can cause a transaction to downgrade to a higher interchange tier.
Level 2 Fields
Sales Tax Amount
Must be the actual tax; cannot be zero unless tax-exempt
Sales Tax Indicator
Flags whether tax is included, not provided, or exempt
Customer Code / PO Number
Buyer's reference number for reconciliation
Merchant Postal Code
ZIP code of the selling location
Level 3 Fields (per line item)
Item Description
Plain-text description of the product or service
Item Quantity
Number of units purchased
Unit of Measure
e.g., EA (each), HR (hour), BX (box)
Unit Cost
Price per individual unit before tax
Commodity Code
UNSPSC or merchant-defined product classification
Extended Amount
Quantity x unit cost for each line
Discount Amount
Any line-level discount applied
Visa's Transition from L2/L3 to CEDP
In October 2024, Visa launched the Commercial Enhanced Data Program (CEDP), replacing the legacy Level 2 / Level 3 interchange qualification framework for commercial card transactions. The old system relied on the merchant's gateway simply passing extra data fields. CEDP fundamentally changes how that data is verified and rewarded.
What Changed Under CEDP
Validation, Not Just Submission
Under the old system, gateways passed enhanced data fields and the transaction qualified if the fields were present and formatted correctly. Under CEDP, Visa actively validates the invoice-level data against the merchant's records. The data must be accurate, not just present.
Post-Authorization Data Submission
CEDP allows enhanced data to be submitted after the initial authorization, during the clearing process. This is a significant improvement because many B2B transactions finalize invoice details after the card is charged. Under the old system, late data submission often meant the transaction could not qualify.
Tiered Incentive Structure
CEDP introduces graduated interchange reductions based on the depth and accuracy of data provided. Merchants who provide richer, verified data receive deeper discounts. This replaces the binary qualified/not-qualified model of the legacy system.
Centralized Data Repository
Visa now maintains a centralized data store where enhanced commercial data is held and made available to issuers for expense management and reconciliation. This benefits both sides of the transaction: merchants get lower rates, and corporate cardholders get better reporting.
Key takeaway: CEDP raises the bar from "pass extra fields and hope they qualify" to "submit verified, accurate invoice data and receive predictable rate reductions." Merchants who were already doing L2/L3 well should see improved qualification rates. Merchants who were passing incomplete or dummy data will need to fix their data quality to continue receiving discounts.
How CEDP Verification Works
Understanding the verification flow helps you diagnose why transactions may not qualify and how to fix them.
Transaction Authorization
The cardholder presents a commercial/corporate/purchasing card. The merchant processes the authorization normally through their gateway.
Enhanced Data Submission
At settlement (or during clearing), the merchant's system submits enhanced data fields: tax amounts, line-item details, PO numbers, commodity codes, and other invoice-level information.
Visa Validates the Data
Visa's CEDP engine cross-references the submitted data against the merchant's registered information and checks for completeness, format correctness, and logical consistency (e.g., line items must sum to the transaction total).
Qualification Determination
Based on the depth and accuracy of the validated data, Visa assigns the appropriate interchange tier. More complete, verified data results in lower interchange rates.
Data Made Available to Issuers
Validated invoice data is stored in Visa's centralized repository and made available to card-issuing banks and corporate expense management systems for reconciliation.
Interchange Rate Reduction Potential
Commercial card interchange rates are significantly higher than consumer card rates. Providing enhanced data can reduce these rates dramatically. Here is a comparison of typical rates across qualification levels.
| Card Type | Level 1 (No Data) | Level 2 Data | Level 3 / CEDP | Savings |
|---|---|---|---|---|
| Visa Commercial | 2.70% + $0.10 | 2.40% + $0.10 | 1.90% + $0.10 | Up to 30% |
| Visa Corporate | 2.80% + $0.10 | 2.45% + $0.10 | 1.80% + $0.10 | Up to 36% |
| Visa Purchasing | 2.95% + $0.10 | 2.50% + $0.10 | 1.75% + $0.10 | Up to 40% |
| Visa Business | 2.65% + $0.10 | 2.35% + $0.10 | 1.95% + $0.10 | Up to 26% |
| MC Commercial | 2.65% + $0.10 | 2.30% + $0.10 | 1.85% + $0.10 | Up to 30% |
Rates shown are representative examples. Actual interchange rates vary by card product, merchant category, and transaction method. Consult the current Visa[1] and Mastercard[3]interchange fee schedules for exact rates.
Estimated Annual Savings by B2B Volume
The dollar impact of CEDP optimization scales with your commercial card volume. Even mid-sized B2B merchants can save tens of thousands per year.
| Monthly B2B Volume | Without CEDP | With CEDP | Annual Savings |
|---|---|---|---|
| $50,000 | $1,425/mo | $975/mo | $5,400 |
| $100,000 | $2,850/mo | $1,950/mo | $10,800 |
| $250,000 | $7,125/mo | $4,875/mo | $27,000 |
| $500,000 | $14,250/mo | $9,750/mo | $54,000 |
| $1,000,000 | $28,500/mo | $19,500/mo | $108,000 |
Estimates assume a blended commercial card rate of 2.85% without enhanced data and 1.95% with full CEDP qualification. Actual savings vary by card mix, transaction size, and data completeness.
Which Businesses Benefit Most
CEDP optimization delivers the highest ROI for businesses that regularly accept commercial cards. If a significant portion of your card volume comes from corporate buyers, government agencies, or institutional purchasers, you are the ideal candidate.
B2B Manufacturers and Distributors
High-ticket invoices paid with purchasing cards. Average transaction sizes of $1,000+ make even small rate reductions meaningful.
Government Contractors
Federal, state, and local agencies frequently use GSA SmartPay cards. These transactions are specifically designed to benefit from Level 3 data.
Wholesale and Supply Companies
High volumes of multi-line-item orders with commodity codes already tracked in inventory systems. CEDP data often maps directly from existing ERP fields.
Professional Services Firms
Law firms, consulting firms, and agencies billing corporate clients on retainer or project basis. Invoice data is already structured for client reporting.
Technology and SaaS Vendors
Enterprise software sales and recurring license fees paid by corporate procurement. Subscription billing systems can automate CEDP field population.
Medical and Industrial Suppliers
Hospital systems and industrial buyers pay with purchasing cards. Order details including product codes are typically available from the order management system.
Implementation Requirements
Qualifying for CEDP rates requires coordination between your payment gateway, processor, and back-office systems. Here is what needs to be in place.
Gateway and Processor Support
Your payment gateway must support enhanced data fields in the authorization and/or clearing message. Not all gateways pass Level 3 data correctly. Your processor must also be enrolled in Visa's CEDP program and be capable of submitting the enhanced data during settlement.
What to ask: "Does your gateway support Visa CEDP and Mastercard Enhanced Data? Can you pass line-item detail in the clearing record?"
ERP / Accounting Integration
The enhanced data fields — line-item descriptions, quantities, unit costs, commodity codes, tax amounts — must come from your invoicing or ERP system. Manual entry is impractical for most businesses. The most effective implementations pull this data automatically from systems like NetSuite, QuickBooks, SAP, or industry-specific ERPs.
What to ask: "Can your integration map our invoice line items to the required CEDP fields automatically?"
Commodity Code Mapping
Each line item requires a commodity code, typically using the UNSPSC (United Nations Standard Products and Services Code) classification. If your products do not already have commodity codes assigned, you will need to map your catalog to the appropriate codes. This is often the most time-consuming part of initial setup, but it only needs to be done once.
Tax Calculation Accuracy
The sales tax amount must be accurate and consistent with the line-item totals. Under CEDP, Visa validates that the tax figures are logically correct. Sending a zero tax amount on a transaction that should be taxed, or a tax amount that does not match the line-item math, will prevent qualification.
Mastercard Enhanced Data vs. Visa CEDP
Both networks offer interchange reductions for enhanced commercial data, but they differ in their approach. Here is how the two programs compare.
| Feature | Visa CEDP | Mastercard Enhanced Data |
|---|---|---|
| Program Name | Commercial Enhanced Data Program | Enhanced Data (L2/L3 framework retained) |
| Validation Method | Active validation by Visa against merchant records | Format and field-presence checking at processor level |
| Data Submission Timing | Authorization or clearing (post-auth supported) | Must be included in the clearing message |
| Centralized Data Store | Yes, Visa hosts and distributes to issuers | No centralized repository; data passes through to issuer |
| Interchange Tiers | Graduated based on data depth and accuracy | Binary: qualifies at enhanced rate or standard rate |
| Max Rate Reduction | Up to 40% on purchasing cards[2] | Up to 35% on commercial/corporate cards[3] |
| Required Fields | Similar to legacy L3 with stricter accuracy requirements | Standard L2/L3 field set with formatting requirements |
Practical note: Most B2B merchants accept both Visa and Mastercard commercial cards. Your CEDP implementation should be designed to satisfy both networks' requirements simultaneously. Since Visa's CEDP requirements are stricter, meeting them typically means you will also qualify for Mastercard's enhanced rates automatically.
Common Pitfalls That Cause Downgrades
Many merchants believe they are submitting enhanced data but are not actually qualifying for reduced rates. These are the most frequent causes of interchange downgrades on commercial card transactions.
Sending Zero or Placeholder Tax Amounts
Passing $0.00 for the tax field when the transaction is taxable, or using a dummy value like $0.01, will fail CEDP validation. The tax amount must reflect the actual sales tax charged on the invoice.
Missing or Generic Commodity Codes
Using a single default commodity code for all line items signals that the data is not genuine. Each product or service category should have an appropriate UNSPSC code mapped in your system.
Line Items That Do Not Sum Correctly
If the line-item extended amounts (quantity x unit cost) do not add up to the transaction total minus tax and discount, the data fails validation. Rounding errors are a common source of this mismatch.
Missing Customer Code or PO Number
The customer code field is required for Level 2 qualification. If your customer does not provide a PO number, use an internal reference number such as the invoice number. Leaving this field blank downgrades the entire transaction.
Truncated Item Descriptions
Some gateways truncate the item description field at too few characters, resulting in meaningless text. Ensure descriptions are clear enough to identify the product or service. 'Widget A' is better than 'WDG'.
Settling After the Qualification Window
Transactions must be settled within the network's required timeframe (typically within 2 days of authorization for Visa). Late settlement causes automatic downgrades regardless of data quality.
Gateway Not Actually Passing the Data
The most common problem: the merchant assumes their gateway supports enhanced data, but the gateway is silently dropping the fields. Always verify with your processor that the enhanced data fields are actually appearing in the clearing record.
How PaySec Automates CEDP Optimization
PaySec handles the complexity of enhanced data submission so you can focus on your business instead of interchange tables and data field mappings.
- -Automatic card type detection. Our gateway identifies commercial, corporate, and purchasing cards at the point of authorization. When a commercial card is detected, the system triggers the enhanced data workflow automatically — no manual intervention required.
- -ERP data mapping. PaySec integrates with major ERP and accounting platforms to pull invoice line items, tax amounts, PO numbers, and product codes directly from your existing records. No duplicate data entry.
- -Pre-submission validation. Before submitting enhanced data to the network, our system validates that all required fields are present, properly formatted, and mathematically consistent. This catches the errors that cause downgrades before they happen.
- -Commodity code library. PaySec maintains a searchable UNSPSC commodity code library and helps you map your product catalog during onboarding. Once mapped, codes are applied automatically to every transaction.
- -Dual-network compliance. Our system formats and submits enhanced data to meet both Visa CEDP and Mastercard Enhanced Data requirements simultaneously, ensuring you qualify for the lowest available rate on every commercial card transaction.
- -Qualification monitoring dashboard. Track your CEDP qualification rate in real time. See which transactions qualified, which downgraded, and exactly why — so you can fix data issues at the source rather than discovering them on next month's statement.
Average Client Results
94%
CEDP qualification rate
0.85%
Average rate reduction
32%
Lower commercial card costs
Ready to Optimize Your B2B Interchange?
PaySec automates CEDP and enhanced data submission so every commercial card transaction qualifies for the lowest available rate. See how much you could save.