Visa’s new program vexes merchants

Core Insights - Visa's new Commercial Enhanced Data Program (CEDP) has led to unexpected higher interchange fees for many merchants, as they were unprepared for the changes implemented in October [1][2][4] - The program requires merchants to provide more detailed data to qualify for lower interchange fees, which has resulted in many merchants struggling to meet these new requirements [3][6] Group 1: Visa's New Program - Visa's CEDP, effective from October 17, demands more data from merchants, which is crucial for financial institutions and intermediaries in combating credit card fraud [4][5] - The program has three levels of interchange fees, with level three requiring the most data and offering the highest discounts, while level one serves as the base rate [5][6] Group 2: Merchant Challenges - Many merchants, including large clients processing billions annually, are facing difficulties in adjusting to the new data requirements, leading to increased fees [3][4] - Historically, merchants received level three discounts even with minimal data submission, but the new program aims to eliminate this practice, making it harder to achieve the same discounts [6][7] Group 3: Communication Issues - There has been poor communication from Visa regarding the new program, leaving merchants and consultants without clear guidance, which has contributed to the challenges faced [7]