Visa has rolled out a major update in how it treats enhanced data for commercial, business, and small-business card transactions. The Commercial Enhanced Data Program (CEDP) replaces the older Level 2, Level 3, and “Large Ticket” interchange incentive programs.

This change is both an opportunity and a risk: do it right and you save more—miss a step and costs can rise.

Get our free downloadable Merchant Action Plan to guide your team through every step of preparation.

What is CEDP?

• Purpose: To improve the quality, consistency, and usefulness of the transaction data submitted in commercial/business card transactions. Visa wants better data for fraud prevention, reconciliation, compliance, etc.
• Replaces:
  • Level 2 and Level 3 interchange programs (and certain legacy “Large Ticket” structures).
  • Over time, many of the older programs will be phased out.

Visa CEDP Key Differences At a Glance

Data validation: presence vs accuracy/validation

Tiers: Level 2 / Level 3 vs unified Product 3

Participation fee: none vs 0.05%

Verified Status: No Real-Time Impact vs Verified Real-Time Benefit

Timing: Old Rates Phase Out 10/17/25 Level 2 Ends 4/2026

Key Changes Under CEDP

• Data validation: presence vs accuracy/validation;
• Tiers: Level 2 / Level 3 vs unified Product 3;
• Participation fee: none vs 0.05%;
• Verified status: what it means;
• Timing (when old rates phased out).

Visa’s CEDP Detailed Differences

Feature	Old Approach (Level 2 / Level 3)	Under CEDP
Data Quality & Validation	Mostly presence of enhanced fields; some leniency with incomplete or placeholder data.	Data must be accurate, complete, non-static; Visa (via VCS = Visa Commercial Solutions) will validate transaction data and ongoing merchant compliance. Merchants are classified as Verified or Non-Verified.
Interchange Rates & Financial Incentives	Reduced interchange fees when submitting enhanced data, but benefits could be uneven.	Lowered interchange rates for compliant (verified) merchants; a participation fee (0.05%, i.e. 5 basis points) on all qualifying enhanced-data volume. Net savings possible, but only if the data passes validation. As Forbes put it: “CEDP represents a fundamental shift in how interchange savings are earned. Instead of simply checking the box by including enhanced fields, merchants now need to provide consistent, validated data to unlock real benefits — otherwise they risk paying more despite the program’s promise of savings.”
Program Structure & Tiers	Separate Level 2 and Level 3 tiers; some programs for large ticket, small business, etc.	Consolidation into a unified “Product 3” category for commercial/small business card enhanced data. Level-2 largely being phased out.
Verification & Status	No formal “verified vs non-verified” status impacting whether benefits apply in real time. Some leniency or delayed penalties.	Merchants will be classified. Verified merchants get real-time benefit; non-verified ones may see delayed incentives or retroactive adjustments. Consistency in submitting good data over time is required to maintain status.

Data Quality & Validation

Old Approach (Level 2 / Level 3)

Mostly presence of enhanced fields; some leniency with incomplete or placeholder data.

Under CEDP

Data must be accurate, complete, non-static; Visa (via VCS = Visa Commercial Solutions) will validate transaction data and ongoing merchant compliance. Merchants are classified as Verified or Non-Verified.

Interchange Rates & Financial Incentives

Old Approach (Level 2 / Level 3)

Reduced interchange fees when submitting enhanced data, but benefits could be uneven.

Under CEDP

Lowered interchange rates for compliant (verified) merchants; a participation fee (0.05%, i.e. 5 basis points) on all qualifying enhanced-data volume. Net savings possible, but only if the data passes validation. As Forbes put it: “CEDP represents a fundamental shift in how interchange savings are earned. Instead of simply checking the box by including enhanced fields, merchants now need to provide consistent, validated data to unlock real benefits — otherwise they risk paying more despite the program’s promise of savings.”

Program Structure & Tiers

Old Approach (Level 2 / Level 3)

Separate Level 2 and Level 3 tiers; some programs for large ticket, small business, etc.

Under CEDP

Consolidation into a unified “Product 3” category for commercial/small business card enhanced data. Level-2 largely being phased out.

Verification & Status

Old Approach (Level 2 / Level 3)

No formal “verified vs non-verified” status impacting whether benefits apply in real time. Some leniency or delayed penalties.

Under CEDP

Merchants will be classified. Verified merchants get real-time benefit; non-verified ones may see delayed incentives or retroactive adjustments. Consistency in submitting good data over time is required to maintain status.

Visa CEDP Timeline

April 12, 2025

• Program launch
• Participation fee begins
• Merchants begin sending enhanced data

October 17, 2025

• Product 3 rates go live
• Old Level 3 program sunset for many eligible cards

April 2026

• Level 2 programs mostly retire (except exceptions)

Timeline: What to Know & Key Deadlines

• April 12, 2025 — Program launched; fee (0.05%) applied to Level 2/3 volume.
• October 17, 2025 — Product 3 interchange rates go into effect; Level 3 as understood under old program sunsets for many eligible card types. Merchants need to have corrected data before then to fully benefit.
• April 2026 — Most Level 2 programs are retired (except some exceptions, like “fleet fuel-only Level 2” programs)

Download Red Maple’s Free Merchant Action Plan

Stay Compliant and Cut Costs Under Visa’s CEDP

Get Red Maple’s Step-By-Step Guide

• Audit current data flows
• Check POS/gateway readiness
• Engage payment processors
• Monitor and maintain Verified status
• Train internal teams
• Prepare for October 17, 2025 and April 2026 deadlines

Download the Merchant Action Plan

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What It Means for Merchants: Risks & Opportunities

Opportunities

• Lower costs per transaction for those who can meet the new data standards.
• More predictable interchange benefits if data quality is good.
• Improved reconciliation, fraud prevention, and compliance benefits from richer, validated data.

Risks / Challenges

• Transactions with missing fields, placeholder/default values, or errors may lose benefits, be downgraded, or see delayed incentives.
• There’s a participation fee (0.05%) which reduces the net gain. If data doesn’t validate, that fee may not be offset.
• Backend systems, POS, gateways, ERP systems, etc., may need updating to capture all required fields, flag correctly, handle verification feedback.
• If a merchant loses “verified” status (e.g. due to inconsistent data), the interchange benefit can be lost or reduced.

What to Watch Going Forward

• How strictly merchants will be monitored and reclassified based on data errors.
• How processors will implement the changes, especially smaller ones: whether they’ll help merchants get compliant, whether there will be surprise costs or delays.
• Whether there will be changes or clarifications in Visa’s error-codes / what counts as “valid” data (e.g. tax-exempt transactions, default or “zero” tax fields, etc.). Some sectors may have peculiar issues.
• How interchange cost savings compare in practice vs theory, once the new rates, verification delays, and participation fee are all baked in.

Conclusion

Visa’s CEDP is the most significant overhaul to enhanced interchange data rules in years. Merchants that implement the steps in our free Merchant Action Plan can lower costs, avoid retroactive adjustments, and stay ahead of deadlines.

FAQs

• 

  What exactly is Visa’s CEDP?

  Visa’s Commercial Enhanced Data Program (CEDP) is a new framework that replaces older interchange incentive programs such as Level 2, Level 3, and “Large Ticket.” It requires merchants to provide complete, accurate, and validated transaction data on commercial card transactions. Visa will classify merchants as Verified or Non-Verified, which determines whether they qualify for real-time interchange savings.

• 

  How is CEDP different from Level 2 and Level 3 programs?

  Under Level 2/3, merchants could earn interchange savings by including additional data fields, even if those fields weren’t always complete or accurate. With CEDP, Visa now validates the data submitted.

• 

  What are the key deadlines I need to know?

  • April 12, 2025 – CEDP launched; a 0.05% participation fee applies to qualifying transactions.
  • October 17, 2025 – New Product 3 interchange rates take effect; the old Level 3 program sunsets for many card types.
  • April 2026 – Most Level 2 programs retire (except certain “fleet fuel-only” programs).
• 

  What are the risks if I don’t comply?

  If merchants submit incomplete, placeholder, or static data, they risk:

  • Losing interchange benefits or experiencing delayed incentives.
  • Paying the 0.05% participation fee without offsetting savings.
  • Being downgraded to Non-Verified status, which further reduces benefits.
  • Facing higher costs if backend systems and processes aren’t updated.
• 

  How can merchants prepare for CEDP?

  To protect margins and take full advantage of CEDP:

  • Audit your data flows to ensure required fields (tax, line item detail, shipping, etc.) are captured.
  • Update POS/gateway/ERP systems to handle accurate and complete enhanced data.
  • Work with your payment processor to confirm they support Product 3 and can monitor data quality.
  • Test transactions before deadlines and monitor your Verified status regularly.
  • Train finance, IT, and operations teams so the whole organization understands the new requirements.

About Red Maple

Red Maple has specialized in expanding the capabilities of Microsoft Dynamics 365 since 2003. Globally deployed by 500+ companies, Red Maple’s patented (US Patent No. 10,853,818) payment solutions for Finance & Operations (F&O), Business Central (BC) as well as Sales (formerly Customer Engagement) and Field Service. Additions such as card present, card not present, ACH, wallet payments, Level II/III processing, surcharging, PCI 4.0 validated, and omnitoken capabilities are a few of the robust features.

The post Visa’s CEDP: What It Means for Merchants + Free Action Plan Download appeared first on Red Maple.

We were thrilled to participate in the MSDW Dynamics 365 BC & NAV AR Payment Automation Showcase, where we demonstrated how Red Maple’s innovative solutions empower businesses to streamline accounts receivable processes and enhance payment automation.

During the event, attendees saw firsthand how our tools:

• Simplify AR automation to boost efficiency and reduce manual errors,
• Seamlessly integrate with Dynamics 365 Business Central and NAV.
• And provide unparalleled control and security for payment processes.

At Red Maple, we specialize in helping businesses save time, improve cash flow, and strengthen security—all while making payment automation simple and effective.

If you missed the showcase, we invite you to discover how Red Maple’s solutions can transform your AR operations by watching the video below and downloading the bonus software comparison guide.

Download Your Free Software Comparison PDF

Ready to discover which software will best meet your needs? Download the AR & Payment Automation for Dynamics 365 BCNAV solutions to compare top platforms: iSolutions, PayFabric, Paystand, PayTrace, and Red Maple. We look forward to helping you optimize your AR operations and automate your payment processes.

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One of the most popular and effective ways to promote your business, learn about industry trends, network and build relationships with vendors and customers is through trade shows and conferences.  At Red Maple, we regularly attended the National Retail Federation show each January in New York as well as several other technology and retail industry shows.  The last big event we participated in as an exhibitor live was the NRF conference in January 2020 in New York City.  Soon after that, everything changed and shifted. When COVID-19 swept across the country in early 2020, the trade show industry came to a screeching halt. From large corporations to non-profits to professional organizations and associations, thousands of groups had to cancel or postpone their trade show, conference or convention.

Many industries and organizations made a pivot, moving events online with virtual conferences, meetings and even smaller “trade shows” taking center stage online throughout 2020 and into 2021.  This past year, more groups started hosting live events again with COVID safety protocols and often smaller attendance, some by design and others by necessity.

As we move into a new year and new challenges with the pandemic has left many groups many are wondering what the trade show/event landscape will look like in 2022 and beyond.

1. Smaller, more focused events: This is one trend that you could see across many industries. Instead of large, broad-based conferences, there will be smaller more focused events. As businesses face struggles with staffing and logistics, they need events that provide a strong ROI. Trade shows will be more focused on the needs of its customers. In addition, some associations will bring their show on the road with shorter, smaller events in various cities. This will make it easier for attendees to get there.
2. Safety and sustainability: According to experts at BizBash, which is a news organization that covers the event industry, many event organizers and planners are requiring COVID vaccinations and/or testing for participants and that has helped the event industry host more in-person events. That is a trend that is expected to continue as well as more safety standards such as contactless check in and digital badges. In addition to COVID safety, sustainability is also a top priority for the industry.  This renewed focus is due to two main factors: November’s United Nation’s Climate Change Conference and the Joint Meetings Industry Council’s Net Zero Pledge.  As we move into 2022 and beyond, more events will focus on promoting eco-friendly events with COVID related safety policies and procedures.
3. Experiences and incentives:  For many reasons, those who attend conferences, conventions and trade shows are going to be more discerning about which events they will attend. Many companies and organizations now have time restrictions and limited financial resources. Because of that, event organizers are focusing on more meaningful experiences that truly offer benefit to their attendees. Instead of big, flashy experiences, they will be more smaller gatherings that are more focused and intentional To motivate people to attend in person event, there needs to a key incentive: worthwhile schedule of events that offer true opportunities to connect with others in the industry; interactive and informative sessions and again – special experiences.
4. Hybrid events are here to stay: Chances are you participated in at least one virtual event or conference since the pandemic began in early 2020.  Then as events started to pivot back to in person, many groups began organizing hybrid events – a mix of in-person and virtual sessions. Offering a virtual aspect at an event also broadens the potential audience reach as those who could not swing the travel can now participate from the comfort of their office or home.

Whether you are planning to attend an event in person, virtually or participate in a hybrid event, there are a few key steps to take to choose the best events for your company or organization and to ensure you are getting a good return on your investment.

1. Budget: Determine what your budget is for a trade show or conference. Include travel costs, meals, special client dinners etc. If you are planning on being an exhibitor, determine your budget for booth space, marketing materials, videos, etc.
2. Goals and objectives: What is your overall goal for attending the conference?  Are you promoting a product or service, planning a launch, or is more geared toward training and education? Once you determine the main goal for attending a conference, set some measurable objectives. For example: return with 10 qualified leads.
3. Make a list: Once you have determined your overall goals, make a list of potential events that will help you reach your goals and objectives. Then research the events: their focus, date and location, programming, exhibitors, attendees etc. Create a spreadsheet to compare the events and determine which you can attend
4. Review the schedule of events: Review what is on the agenda of the different trade shows/events/conferences on your list. What topics are they covering? Who are the speakers, panelists/presenters? What opportunities are there for networking and meeting with prospective clients or partners?
5. Check attendee List: Find out who else will be attending the conference, including who will be exhibiting. Are they from companies or organization that are potential clients, partners or vendors?  Are the speakers or presenters, experts in your industry who can provide strong educational or training opportunities?

The good news is that the event industry has adjusted well to the ongoing challenges of the pandemic and have made changes and improvements that could bring more meaningful and rewarding experiences for you and your team members.

The post How are trade shows going to change in 2022 appeared first on Red Maple.

You can’t click on any news story today without seeing online businesses around the world getting locked-up by ransomware and financially ruined by cybercriminals. From the Microsoft Server attacks in March to the SolarWinds Corporation breaches last year, strikes against e-commerce are at an all-time high. Online retailers are getting hit harder than any other industry.

Cyberattacks “increased significantly” during the pandemic, according to the Global Security Report. The reason – new and inexperienced retailers were forced to move online because of the pandemic, and their customers followed them.

While retailers make attractive targets for hackers, there are three steps you can take to increase business identity theft protection and to make your online store a harder target for thieves.

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While coronavirus warnings from the Centers for Disease Control and Prevention are keeping many people out of brick and mortar stores this holiday, new studies show they are moving online to buy gifts and are expected to ring up record sales. According to the newest McKinsey report, half of Americans plan to spend more money online than they do shopping in-store this holiday season.

That means holiday e-commerce will add up like never before. Adobe Analytics predicts COVID-19 will drive online holiday spending to $189 billion, or 33% more than last year. In a recent press release, Adobe went even further, predicting $200 billion of online spending if the flu season also keeps people out of stores. The surge in e-commerce isn’t expected to end with the noisemakers on New Year’s Eve. Nearly half of all consumers plan to keep shopping on their computers, tablets, and smartphones post COVID-19.

Retailers who focus on their customer’s health and connect with them on a personal level are sure to have good tidings this season and a happy New Year.

Here are five tips to maximize your holiday sales safely:

Engage

Experts say retailers can capitalize on the pandemic that’s keeping shoppers homebound by engaging with them. Retailers should be offering discounts, free shipping, subscription deals and reward programs. Engagement helps build a loyal customer base and can capture critical customer data to make future sales more personalized. The store Kohl’s has mastered the art of capturing returning customers by offering Kohl’s Cash with every purchase that can only be used on future dates. When retailers make shoppers feel valued, in control and rewarded, they are more likely to become return customers.

Retailers can also engage with their customers by giving them empathetic messages on receipts, emails, and text messages. It’s a great way to tell shoppers how your business is keeping them safe and healthy in your physical stores, and that they’re also appreciated when they are shopping remotely.

Visually engage online shoppers. While many merchants know to re-decorate or change products in the front of their brick-and-mortar stores, they are not used to doing the same thing with their online store. But now more than ever it is important for retailers to update their online stores with new images and videos for the changing seasons, holidays, and trends so it stays fresh and appealing.

Simplify & Focus on Safety

Retailers can keep online customers coming back with simple, seamless shopping streams and secure check-out processes. Ensure the shopping experience is consistent, reliable, and safe. With cybercrime expected to top $12 billion this year alone, merchants must be able to accept and process credit card payments online securely. The software company Red Maple offers a safe and effective solution called StagedPay.

In brick-and-mortar stores, it’s just as critical that your point of sale PIN pads are sanitized, easy to use and secure.

To learn more about how to ensure your credit card processing is safe and secure online and in person, click here for three tips to prevent theft and fraud.

Also, make sure consumers can find you on the world’s largest search engine, Google. Your website should be optimized with key words so that your business shows up whenever someone conducts a relevant search. Merchants should set up business listings on Google, Facebook, Yelp, and other social media platforms.

Connect

Consider marketing your website where your target customers are – on social media. Connect with them by offering peer support, how-to-videos, reviews, and recommendations. Retailers can use new social interactions such as live chats to create an interactive and immersive experience for customers.

Reply to your followers as quickly as possible with thoughtful answers and thanks. Consider offering rewards or discounts to customers who reach out and share your posts. Also remember to share their content, when appropriate, to build and improve relationships.

With the data you collected from membership and loyalty programs, you can also text or alert customers when they get near your store (also called geofencing) about sales and new items.

Get personal

What’s your story? Retailers who share their backstory, as well as their business’s vision, purpose and passion can often increase sales, customer loyalty and profitability. Make your brand more human by adding personal touches to your online presence about your struggles and accomplishments. A study by Mintel also shows 29% of consumers share their support of ethical companies on social media, while 58% say buying ethically produced products makes them feel good.

And merchants can use the newest technology to personalize the shopper experience. When retailers make product recommendations based on predictive analytics or by reviewing what is in a consumer’s cart, it can drive up conversion rates by 40%. Technology can also show customers what clothing items look like on virtual models with different body shapes and sizes, allowing them to see what it might look like on them.

Intelligent chatbots can engage customers with a merchant’s chat service to get personal questions answered. The technology can also be integrated with customer loyalty experience. For example, REI shoppers who buy a tent will get messages about how to set it up and take care of it, with suggestions about other complimentary items to buy.

Provide great service

With the growing concern for health and safety, online stores must cater to their customers online by providing great service. By offering your customers curbside service, you are providing the best of both worlds; safe shopping and getting the product immediately. Retailers must have an easy and convenient online ordering and inventory system so that customers know how to get their items quickly.

A new trend for retailers in this area is “click and collect” shopping with curbside pickup. That shopping method is expected to jump this holiday season by 60% according to eMarketer. In this model, customers buy something online and then choose a location to pick up their purchase, instead of having it delivered to their home. This allows customers to check the quality of their product and return it immediately if there are any problems. In a study, the International Council of Shopping Centres found that 61% of shoppers who used the click and collect model also went into the physical store and purchased more goods.

Retailers who focus on shoppers’ health and safety concerns and go all out to engage and personalize service are sure to earn loyalty and more e-commerce business well into 2021.

The post I’ll be home for Christmas…shopping. <br/><span class="kn-sub-title">The top five tips for retailers to make this season’s sales safe, merry, and bright.</span> appeared first on Red Maple.

Due to the coronavirus pandemic, e-commerce has become one of the most popular ways to shop. Experts predict online sales will top an unprecedented $630 billion this year. Another report shows online thieves will steal 1.9% of that, or more than $12 billion. The online shopping – and fraud – trends have been fueled by the pandemic, which forced many stores to shut down with more people isolating at home and shopping online. As e-commerce sales skyrocket, more cybercriminals are trying to steal a piece of the pie. That means any business getting into or expanding e-commerce must also deal with increased threats.

Red Maple offers a safe and effective solution so you can securely accept and process credit card payments. Click here to learn more about Advanced Credit Cards for F&SCM.

Online retail is more vulnerable to theft than brick-and-mortar businesses. E-commerce retailers are attacked an average 206,000 times a month, according to the online security company Signal Sciences. While most breaches are prevented, about 27% are successful. The damages add up quickly. The Merchant Risk Council says online payment fraud costs businesses 1.8% of revenue. For every dollar of fraud from chargebacks, e-commerce businesses lose an extra $2.94 for processing fees, investigations, legal fees, and security software. Fraud also impacts customers who often blame the seller for problems. The good news is that you can follow five best practices to secure your business and bottom line.

Red Maple offers a patented solution to protect your customer’s personal information from hackers. Click here to learn more about StagedPay.

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