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Understanding Visa's CEDP Program and How NMI Helps You Stay Compliant

Updated

Overview

Visa has launched the Commercial Enhanced Data Program (CEDP) to modernize Level 2 and Level 3 data programs for commercial and small business credit cards. As of April 2025, CEDP provides interchange incentives to merchants that submit accurate, verifiable enhanced data. This article explains what the program means for you and how NMI’s Level III Advantage helps you comply effortlessly.

What is Visa’s CEDP?

CEDP is Visa’s new standard for enhanced data, replacing legacy Level 2 and Level 3 interchange programs by April 2026. Merchants that submit high-quality invoice-level data validated by Visa Commercial Solutions (VCS) can earn up to 15 basis points in interchange reductions.

Visa's Key Dates:

  • April 12, 2025 – CEDP launches with a 0.05% fee on applicable transactions
  • October 17, 2025 – Data validation and merchant verification begins; new rates take effect
  • April 17, 2026 – Legacy Level 2 programs sunset (excluding Fleet Fuel L2)

How NMI Supports CEDP Compliance

NMI’s Level III Advantage feature allows merchants to populate and submit enhanced data automatically, helping them qualify for lower interchange rates under CEDP.

Note: Starting October 2025, Visa will refer to Level 3 data as "Product 3" in their documentation. However, NMI will continue to use the name Level III Advantage for our service. 

Benefits of Level III Advantage

  • Cost Savings: Access lower interchange rates by submitting enhanced B2B/B2G data
  • Automation: Auto-fill stock or dynamic values across all transactions
  • No Coding Needed: Works regardless of how the transaction is initiated (API, Virtual Terminal, etc.)

What Partners Need to Do

  1. Confirm processor support: Log in to the Partner Portal and use the Processor Matrix to verify that the merchant’s processor supports Level III data.
  2. Enable Level III Advantage: In the Partner Portal, activate the Level III Advantage value-added service for the merchant account.
  3. Educate merchants:
    • Let them know about Visa’s new CEDP program
    • Clarify that NMI’s product remains unchanged
    • Explain how the Automatic Level III Template can help them stay compliant

What Merchants Need to Do

To stay compliant with CEDP and receive interchange incentives, merchants should ensure that their enhanced data is accurate and complete. This includes providing clear item descriptions, accurate subtotals, and confirming that all line items add up to the total transaction amount.

  1. Configure their Automatic Level III Template:
    • Log into the Merchant Portal, then go to Settings > Transaction Options > Automatic Level III
    • Complete all applicable fields as accurately and thoroughly as possible
    • Save the template
  2. Understand dynamic fields:
    • Some fields can use dynamic data from each transaction:
      • Fields like Order ID, PO Number, and Order Date can auto-populate
      • Fields like Product Cost and Tax Amount can reflect the actual transaction values
    • The gateway will only add data if the field is blank—it will never override what the merchant provides manually or via API
  3. Review acquirer feedback: Acquirers will provide monthly verification reports to help correct any data issues