Navigating Visa's New Interchange Rules: What B2B Businesses Must Know

Understanding Visa’s New Rules for B2B Payments

Visa has recently introduced its Commercial Enhanced Data Program (CEDP), bringing significant changes to interchange rates for B2B payments. These new regulations tie interchange rates directly to verified, real transaction data—encouraging suppliers to commit to higher standards of data integrity. This shift is monumental for suppliers who’ve long navigated a landscape marred by data inaccuracies.

Dean M. Leavitt, founder and CEO of Boost Payment Solutions, emphasizes that "for quite some time, many in the industry have been modifying their data submissions (often referred to as stuffing data) to qualify for better rates.” With the CEDP, only genuine data pulled directly from supplier invoices will now suffice. This not only combats the longstanding issues of poor data, but it also enforces accountability throughout the B2B payments ecosystem.

Why Accurate Data Matters

The implications of CEDP go beyond mere compliance. Companies that successfully transition to submitting high-quality, verified data can benefit from a reduced interchange rate of up to 15 basis points compared to the previous Level 3 rates. Conversely, those who fail to meet these exacting standards risk incurring interchange fees that could be nearly one percentage point higher. This change introduces a critical pivot point for suppliers, as margins in the commercial payment space have always been razor-thin.

The Role of AI in Streamlining Transactions

A key ally in adapting to these new rules is artificial intelligence. Boost has integrated AI into its operations to automate the validation of transaction data and improve overall accuracy. Leavitt states, “We’re using AI in diverse ways for this CEDP initiative. By enhancing our data processes, we can significantly mitigate manual workload associated with exception handling.” AI is not only assisting in data validation, but it's also speeding up product launches and ensuring suppliers experience a smoother transition through the regulatory changes.

Preparing for Upcoming Changes in 2025

With the CEDP set to be enforced as of October 2025, businesses must prepare proactively. Some players in the B2B payments space have already begun this transition, while others face uncertainty. "We’ll discern who has been diligent in adapting over the next few months," Leavitt explains. A transition plan is essential—not just for compliance's sake, but for the ongoing financial health and operational efficiency of these businesses.

Future Trends in B2B Payments

As the CEDP begins to take root, suppliers need to consider the broader implications for financial strategy and cash flow management. The program is a significant step toward re-establishing trust and transparency in commercial payments. With B2B payments estimated to exceed $120 trillion worldwide, ensuring that every transaction is legitimate and accurately reported can bolster confidence in the marketplace as a whole. Investing in technology and partnerships that enhance data submission processes is no longer optional—it's a necessity for survival and success in an increasingly fast-paced world.

Final Thoughts: The Path Forward

The CEDP is more than just a regulatory requirement; it sheds light on the evolving landscape of B2B payments. By understanding these changes, suppliers can not only comply with new requirements but also optimize their operations and enhance profitability.