Visa’s (NYSE: V) Commercial Enhanced Data Program (CEDP), launched this month, introduces a new and improved method for transaction data capture, validation, and utilization of commercial credit card payments in the United States. Designed to address longstanding issues with data accuracy and completeness in business-to-business (B2B) transactions, CEDP replaces outdated legacy programs like Level 2 and Level 3 data submissions. This program is exclusively for commercial cards, excluding consumer and debit transactions, and applies to both in-person and card-not-present (CNP) environments (please see last week’s WHF article on VAMP for consumer card discussion).
Let us explain
CEDP is an interchange optimization framework that mandates the submission of descriptive, validated transaction data for all U.S.-based Visa commercial and small business credit card purchases. Key elements include:
Benefits for Stakeholders
Implementation and Compliance
To participate, merchants and processors must update their systems by October 2025 for initial rollout, with full enforcement by mid-2026. Compliance involves:
Challenges and Future Outlook
While CEDP streamlines B2B payments, challenges include upfront integration costs for smaller merchants. Nonetheless, early adopters report 15-20% improvements in transaction approval rates due to better data hygiene. Looking ahead, CEDP is the foundation for AI-powered insights, potentially expanding to international markets.
