It’s Level 3 or Bust as Visa’s Interchange Shift Rewires B2B Data

As of Saturday (April 18), Visa’s Commercial Enhanced Data Program (CEDP) officially phased out its Level 2 interchange program, replacing the legacy incentive structures with a new interchange system that rewards one thing above all: high-quality, verifiable Level 3 data.

What was once an optional optimization for B2B card payments is now the primary pathway to cost efficiency. For CFOs and operators, the implications may be as immediate as the Level 2 sunset, and their consequences are not merely technical ones.

Transactions that previously qualified for discounted rates under Level 2 will now fall into higher-cost categories unless they meet stricter Level 3 standards. There is no longer a low-effort path to optimization. Transactions either meet the bar for verified, high-quality data, or they don’t. That distinction carries real financial weight.

In the end, the shift is less about payments than about preparedness. The companies that succeed will be those that recognize the moment not as a disruption to be managed, but as a catalyst for transformation.

Read more: Why Messy Merchant Data Could Make B2B Payments More Expensive 

A Structural Reset in Interchange Economics 

In a world where data drives value, the ability to capture, manage and leverage detailed transaction information becomes a defining capability.

CEDP does not simply require more data; it demands better data. Visa now validates transactions for completeness and accuracy, assigning merchants a “verified” or “non-verified” status that directly determines interchange rates.

Level 3 data has long been associated with large-ticket or specialized transactions, requiring detailed line-item information such as product descriptions, quantities, unit costs and freight charges. What has changed is its centrality. With Level 2 removed, Level 3—or more precisely, CEDP-validated Level 3—is now the only scalable way to achieve interchange savings in B2B card payments.

Legacy payment architectures are rarely designed for this level of precision. Data often originates in disconnected systems spanning enterprise resource planning (ERP) platforms, invoicing tools, procurement workflows and more, and must be stitched together before a transaction is processed. Each handoff introduces risk: missing fields, inconsistent formatting or incomplete records that can invalidate an otherwise eligible transaction.

Zach Lynn, head of customer data and insights at Boost Payment Solutions, wrote in the PYMNTS eBook “Headlines That Will Shape the Close of 2025” that data exchange has become non-negotiable in the payments industry.

“In today’s environment, seamless, secure data flows between buyers, suppliers and financial institutions are essential,” Lynn wrote. “Whether it is enabling real-time reconciliation or supporting advanced analytics, the ability to move and leverage data is now table stakes for any organization serious about optimizing working capital.”

Because Visa now evaluates data quality transaction by transaction, small errors can cascade into higher costs. Inaccurate data doesn’t just fail quietly; it actively erodes margin.

The result is a shift in priorities. Finance teams that once focused on negotiating processor rates must now invest in data governance, system integration and automation. Payment optimization becomes as much a technology problem as a financial one.

See also: The Riskiest Words in B2B: This Is How We’ve Always Done It 

From Cost Center to Strategic Lever

One of the less discussed implications of the Level 2 sunset is its effect on financial planning. Interchange has always been a variable cost, but it was also relatively predictable. Finance teams could model expenses based on historical qualification rates, assuming a stable mix of Level 1, Level 2 and Level 3 transactions. That assumption no longer holds.

Under CEDP, interchange becomes more dynamic. Rates fluctuate based on data quality, verification status and ongoing compliance. Transactions can be downgraded retroactively if data fails validation.

This introduces a new layer of volatility into forecasting. CFOs must now model not just transaction volume, but data performance—estimating how much of their payment flow will qualify for verified status versus standard rates.

For businesses that rise to the challenge, the rewards are tangible: lower costs, greater efficiency and a more scalable operating model. For those that do not, the consequences will be equally clear, reflected in higher fees and missed opportunities.

Looking ahead, if firms persist without the systems and processes to support high-quality data, they may face persistently higher costs and reduced flexibility particularly as concurrent innovations like artificial intelligence scale across the B2B space.

“If you don’t have well understood, well managed, well governed data, it’s going to be really hard to use AI,” Kathleen Pierce-Gilmore, senior vice president and global head of issuing solutions at Visa, told PYMNTS this week.

“I would put my whole life savings on the modernization of infrastructure,” Pierce-Gilmore added.