If your business processes commercial credit card payments, qualifying for Level 3 interchange rates can produce significant savings. However, starting October 17, 2025, Visa is changing the rules with its new Product 3 category under the Commercial Enhanced Data Program (CEDP).

Here’s what you need to know to keep qualifying for those optimal rates

Why Level 3 Data Matters

Level 3 data adds transparency and reduces risk by sending Visa detailed purchase information such as line items, tax, and product codes. Because these transactions are considered lower risk, Visa rewards merchants with reduced interchange fees.

Product 3 continues this benefit but raises the bar for what information must be submitted and how it is validated.

What’s Changing with Product 3?

Visa is streamlining the Level 3 program into Product 3, which applies to commercial card transactions.

The biggest change is real-time validation. Visa will immediately check each transaction to confirm the required data is present, properly formatted, and mathematically accurate. If anything is missing or incorrect, the transaction will not qualify for Level 3 savings.

What You Must Include in Each Transaction

To qualify, every eligible Visa commercial transaction must include at least one valid line item containing:

• -Product description
• -Product code
• -Quantity
• -Unit of measure
• -Unit cost
• -Tax amount
• -Line item discount (if applicable)
• -Line item total (must match the math)

How Real-Time Validation Works

Visa’s system checks your data in real time, confirming:

• -Field format (e.g. numeric, alphanumeric, decimal points)
• -Arithmetic accuracy (unit price x quantity – discount = line total)
• -Completeness (no required fields left blank)

If validation fails, the payment still processes, but you’ll pay standard interchange rates instead of Level 3 rates.

Qualified vs. Non-Qualified Merchants

Under CEDP, Visa also classifies merchants based on data quality:

Qualified (Verified) Merchant: If 90% or more of your recent Visa commercial transactions pass validation, you are considered verified. This status allows you to receive real-time Level 3 rates at settlement.

Non-Qualified (Non-Verified) Merchant: If you fall below that threshold, you will not receive real-time Level 3 rates. Instead, you may only get rebates after clearing if the data later validates, or the transaction may downgrade permanently to a higher rate.

This distinction means accuracy and consistency are just as important as providing the data itself.

What Businesses Need to Do Now

• 1. Review your setup to confirm it can pass the required Level 3 fields.
• 2. Ensure your product descriptions and codes are meaningful and not generic.
• 3. Verify that tax and surcharge amounts are included correctly.
• 4. Test your transactions early to confirm they pass validation.
• 5. Work with your provider to understand how they manage defaults or missing fields.

How UTA Can Help

At United TranzActions, we are working directly with Visa and Merchant Acquirers to implement these requirements. Whether you use our virtual terminal or API, our platform will:

• -Validate card eligibility before Level 3 data is sent
• -Automate formatting to align with Visa rules
• -Validate totals in real time
• -Support merchants in achieving and maintaining qualified status for the best interchange savings

Bottom Line

What’s certain is that real-time validation will be enforced, and your ability to qualify depends entirely on meeting the updated standards. Need help getting ready? We're here to walk you through it.

Gain the certainty of a partner who understands the process and can guide you through every requirement.

Mark Tapia
Vice President Business Development
mtapia@unitedtranzactions.com
800.858.5256 ext 3028.
Direct: 786.264.7028.