Interchange Optimization Cost Savings
We identify opportunities to improve efficiency and maximize transaction value.
Visa CEDP Updates
The Visa Commercial Enhanced Data Program (CEDP) is the most consequential structural change to commercial card interchange qualification in years. The April 2026 changes directly determine whether your business pays preferred or penalty rates on Visa commercial transactions.
Visa consolidated its legacy Level 3 programs into a single enhanced-data tier called Product 3 and introduced a Verified Merchant status system.
Verified Merchants
Merchants with a consistent record of clean, mathematically accurate submissions receive Verified status and the preferred Product 3 rate.
Unverified Merchants
Merchants whose data fails quality checks are classified as Unverified.
- Pay interchange approximately 90-115 basis points higher than merchants submitting no enhanced data at all.
- For a business processing $10 million annually in Visa commercial card volume, the gap can represent $65,000 to $90,000 per year
Visa designed the penalty specifically to eliminate the practice of submitting placeholder data to game legacy qualification logic.
Level 3 data is the most granular tier of transaction information a merchant can send when processing a commercial card payment. It functions as a digital invoice attached to the payment itself, giving the card network full visibility into:
- What was purchased.
- Quantity purchased.
- Price per unit.
In B2B payments, Visa and Mastercard define three processing levels. Each level requires progressively more transaction detail and unlocks progressively lower interchange rates in return for reduced fraud and dispute risk.
More verifiable invoice-level data means lower risk for the issuing bank, which translates to lower fees for the merchant.
Stricter Validation
Visa’s proprietary algorithm will verify the completeness and accuracy of your transaction data.
- Placeholders will no longer qualify.
- Generic text will no longer qualify.
Verified vs. Non-Verified
All merchants and partners will initially be classified as Non-Verified.
- Verified status is granted only after Visa confirms data accuracy.
- Verified status unlocks reduced interchange rates.
Downgrades
Inaccurate or incomplete data can:
- Impact more than a single transaction.
- Cause past transactions to be reclassified.
- Result in higher processing costs moving forward.
No New Fields Required
Visa is not requesting additional integration fields.
- Focus is on data accuracy.
- Not on data volume.
April 12, 2025
- Program launched.
- A participation fee of 0.05% applied to all CEDP transactions going forward.
- The program does not include Fleet fuel-only Level 2 and GSA Government Large Ticket transactions.
October 17, 2025
- Beginning of VCS transaction data validation and merchant data verification for submitted transactions.
- New CEDP interchange incentives go into effect.
- Deadline for merchants to correct identified enhanced-data errors and remain eligible for interchange discounts.
April 17, 2026
- End of previous Commercial and Small Business Level 2 interchange programs (except the Fleet fuel-only Level 2 program).
Unlock Greater Payment Savings
Many business-to-government (B2G) and business-to-business (B2B) merchants are leaving money on the table without realizing it.
Merchant account fees are a standard cost of doing business. However, the right solutions, gateways, and pricing can significantly reduce processing fees on your credit card transactions.
This is where meaningful payment savings can be achieved.
How Interchange Optimization Works
Lower Processing Costs Level 3 Data
Although interchange rates are set by card brands, many transactions can qualify for lower-cost categories. By leveraging Level 3 data, B2G and B2B businesses may reduce processing costs by up to 1.15% per transaction, creating valuable opportunities for long-term payment savings.
Optimizing Every Eligible Transaction
SRQ Processing helps B2G and B2B merchants secure the most favorable interchange rates available. By collecting additional transaction details that lower risk, our system identifies cards eligible for Level 3 optimization, helping businesses achieve lower processing fees and improved payment savings.
Understanding Interchange
Interchange is a rate and fee charged by credit card issuing banks to cover the costs and risks involved in handling credit and debit card transactions.
These rates are set by:
Visa
Mastercard
Amex
Discover
How Interchange Works
Interchange is present behind the scenes in every transaction, regardless of:
Card Brand
Processor
Merchant
Every processed transaction is routed to an interchange "bucket" with a specific rate and fee assigned to it.
There are hundreds of interchange categories based on factors such as:
Ticket Size
Card Brand
Transaction Details
Other Qualifying Factors
Let’s Get Connected
Speak with our team to learn how we can support your business to reduce processing fees.Â