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Featured Case Study

How to assess payment integrations for your ERP system

Featured Case Study

Debit card fees: where credit card compliance rules don’t apply

Featured Case Study

New Visa CEDP Level 3 requirements: what B2B merchants must do

Featured Case Study

5 things to look for when choosing the best payment processor for your business

How to assess payment integrations for your ERP system

ERP Payment Integration Assessment Guide: How to Evaluate Partners & Reduce Costs
TL;DR: ERP payment integration shapes reconciliation accuracy, cash flow visibility, security posture, and your team’s daily workload. This guide gives you a practical framework to evaluate partners across seven critical dimensions, understand hidden costs, compare integration methods, and make a decision that scales with your business.

Your Finance Team Is Bleeding Hours. Here’s Why.

Picture this: it’s month-end close. Your finance team is toggling between your ERP, a payment portal, and a spreadsheet — manually matching transactions, hunting down discrepancies, and re-keying data that should have flowed automatically. They’ve been doing this for years. It feels normal. It isn’t.

ERP payment integration shapes reconciliation accuracy, cash flow visibility, security posture, and your team’s daily workload. When it works well, it disappears into the background. When it doesn’t, it quietly taxes every financial process in your organization.

~35% reduction in reconciliation time with well-integrated ERP payment systems

~14 hrs/month returned to finance teams spending 40 hours on manual reconciliation

25% improvement in overall financial process efficiency

Source: Deloitte, “Crunch Time: Finance in a Digital World” (2024); Institute of Finance and Management mid-market benchmarks.

These are not aspirational figures. They reflect what happens when payment data flows directly into your general ledger without human intervention. And the inverse is equally true: poor integrations — connections that break during ERP updates, data syncs that lag behind reality, exception handling that becomes manual — compound in cost over time.

That compounding effect is why the assessment process deserves real rigor. This guide gives you the framework to do it right.

Seven Factors That Separate Good Integrations from Costly Ones

1. Seamless ERP Compatibility

Your payments partner should offer a proven integration with your specific ERP and version — whether that’s NetSuite, Sage, or another platform. Look for native connectors or well-documented APIs that push payment data directly into your general ledger, accounts receivable, and accounts payable without manual rekeying.

Not all connectors are equal. Some require heavy customization that effectively turns a pre-built integration into a custom project. Ask to see the integration working in an environment close to yours, and request references using a similar configuration. Reluctance here is a meaningful signal.

2. Automated Reconciliation

This is where much of the operational value lives. The integration should automatically match payments to invoices and flag exceptions — instead of forcing your team to review every transaction. Strong solutions handle partial payments, overpayments, credits, and refunds cleanly.

Straightforward matches are easy. The real test is how the system handles multi-invoice payments, split refunds, and edge cases without manual workarounds. Ask for a live demo using messy scenarios, not clean ones.

3. Security and Compliance

Any provider should meet PCI DSS requirements at minimum and support tokenization so raw card data never touches your ERP. Look for end-to-end encryption and mature fraud controls.

If you operate in a regulated industry, confirm that the provider understands your specific compliance environment and can map their controls to it. Ask about audit history and incident response practices — not just certifications. Certifications tell you what a company passed once. Practices tell you how they operate daily.

4. Industry Expertise

Payment workflows differ meaningfully across distribution, SaaS, manufacturing, and healthcare. A provider with experience in your vertical will configure faster and anticipate compliance nuances that generalists miss. Ask for case studies and references that reflect your industry and transaction patterns — not just their largest logo.

5. Payment Method Coverage

Your integration should support the payment types your customers and vendors expect: cards, ACH, bank transfers, and virtual cards. Just as important is how each method posts and reconciles inside the ERP. If adding a payment type creates manual journal entries or side processes, the integration is incomplete.

6. Real-Time Data Sync

Transaction status, confirmations, and cash position should update in your ERP as payments occur. This gives finance teams accurate visibility and allows support teams to answer payment questions without switching systems or waiting for batch jobs.

Ask specifically: is this real-time, near-real-time, or batch? The difference matters more than you’d think when a customer calls asking where their payment is.

7. Scalability

Confirm that the integration can support higher transaction volumes, additional entities or subsidiaries, new payment methods, and ERP upgrades without a redesign. Ask about the provider’s largest transaction environments and whether the same architecture supports both small and large customers.

A solution that works beautifully at 500 transactions per month but buckles at 5,000 is not a scaling partner — it’s a migration waiting to happen.

The Hidden Economics of Payment Integration

Integration quality is only half the financial equation. Many organizations focus on technical fit and overlook the long-term economics of processing, which can quietly erode the value of an otherwise strong integration.

Start by mapping the full fee structure across every payment type you use: card transactions, ACH, virtual cards, cross-border payments, chargebacks, refunds, and monthly platform fees. Understand what is bundled and what is add-on. Then ask a more operational question: does reconciliation reporting clearly separate gross amounts, fees, and net deposits inside the ERP? If fees are hard to map and reconcile, your team will spend time manually rebuilding what the integration should have delivered automatically.

Ask every provider: “Can you model my real costs using our actual processing mix and average ticket size, and show me how fees flow through ERP reporting?”

A partner who can do this demonstrates both transparency and maturity. The cheapest headline rate is not always the lowest operational cost once exceptions, support, and reconciliation effort are factored in.

The less visible costs

Also consider the less visible costs. What does it cost to add a new payment method later? What are the fees around failed payments and retries? Is there a separate charge for multi-entity or multi-currency support? These line items rarely appear in initial proposals, but they shape the total cost of ownership over a three-to-five-year horizon.

  • ▸Cost to add a new payment method later
  • ▸Fees around failed payments and retries
  • ▸Separate charges for multi-entity or multi-currency support
  • ▸Exception handling and support costs over time

Integration Methods: A Side-by-Side Comparison

Payment providers typically connect to ERPs through one of three methods, each with distinct tradeoffs in speed, flexibility, and maintenance burden.

Method Speed Flexibility Maintenance Best For
Native Connectors Fastest Limited Low Standard workflows, common ERP configs
Custom API Slowest Maximum High Unique workflows, heavy customization needs
Middleware / iPaaS Moderate Moderate Medium Balancing speed and flexibility

Strong partners can support more than one method and guide you toward the right fit based on your environment and resources. If a provider only offers one path, make sure it’s the right one for your team — not just the easiest one for them.

The Questions That Actually Matter

A solid evaluation goes beyond feature lists. It tests how the provider actually operates. Here are the questions that will separate strong partners from polished pitches:

1. Do you have a proven connector or API for our exact ERP version? Show us — in documentation, a demo, or references.

2. What is the realistic implementation timeline, and what internal effort will our team need to commit?

3. Walk us through how exceptions, refunds, failed payments, and chargebacks are handled in practice — not in theory.

4. What does your support model look like during and after launch? What are your response time SLAs?

5.When our ERP version upgrades, who maintains compatibility? What’s the typical lag?

6.Can we speak with reference customers who have similar volumes, configurations, and industry complexity?

7.What surprised your existing customers during implementation, and what would they change?

Scoring Framework: Compare Providers Objectively

Subjective impressions and slick demos can mislead. To compare options consistently, score each provider across seven dimensions. Assign weights based on your priorities — compatibility and automation carry the most weight for most organizations, while high-growth companies may weight scalability more heavily, and regulated businesses may weight security highest.

Rate each provider on a 1–5 scale per dimension, multiply by your chosen weight, and compare totals.

Dimension What to Test Weight Score (1–5)
ERP Compatibility Proven connector for your exact ERP version; native data flow into GL, AR, AP High
Reconciliation Automation Auto-matching payments to invoices; handling of partials, overpayments, split refunds High
Security & Compliance PCI DSS, tokenization, encryption, fraud controls, audit history, incident response High (regulated)
Total Cost & Fees Full fee structure across all payment types; clear gross/fees/net separation in ERP Medium–High
Payment Method Coverage Cards, ACH, bank transfers, virtual cards; each posts and reconciles natively in ERP Medium
Real-Time Data Sync Status and confirmations update as payments occur; no batch lag Medium
Scalability Higher volumes, additional entities, new methods, ERP upgrades without redesign Medium–High

Using a defined scoring model turns vendor selection from a subjective debate into a structured decision. It also creates an artifact you can reference later if stakeholders question the choice.

Making the Decision

Choosing a payment integration partner is a decision you will live with for years. Before you sign:

  • ✓Run a proof of concept using your real workflows and data — not sample scenarios.
  • ✓Speak with reference customers and ask direct questions about delays, breakpoints, and support quality.
  • ✓Favor partners who demonstrate deep ERP integration expertise alongside payment capability.
  • ✓Require clear explanations of both technical behavior and economic impact.

Organizations that get this right do more than process payments efficiently. They shorten close cycles, improve cash flow management, and build a finance operation that can keep pace with growth.

The integration you choose today becomes the financial infrastructure you operate on tomorrow. Make it count.

Ready to assess your ERP payment integration?

Get a free integration assessment

Disclaimer: The information in this article is intended as a general guide for evaluating ERP payment integrations. Specific capabilities, costs, and timelines vary by provider, ERP platform, and business configuration. Always conduct your own due diligence and consult with your IT and finance teams before making integration decisions. Statistics cited are based on industry research and may vary by organization size and complexity.

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Debit Card Fee

Debit card fees: where credit card compliance rules don’t apply

debit-card-fees
Debit card fees: where credit card compliance rules don’t apply
TL;DR: Debit card transactions cannot be surcharged under any circumstances in the U.S., even when processed on credit rails. Most violations happen through system configuration errors, not intentional policy. Network audits often uncover violations months after implementation, requiring refunds to all affected cardholders. This guide explains why it happens, what it costs, and how to verify compliance now.

Card payments are no longer a competitive advantage—they’re infrastructure. And like most infrastructure, they tend to fade into the background once they’re working.

That’s precisely why debit card compliance remains one of the most common, and costly, blind spots in modern payment operations. Debit sits at an uncomfortable intersection of pricing strategy, network rules, and consumer protection. It looks simple at checkout, but it’s governed by rules that are far less forgiving than many businesses realize.

For finance leaders managing margin pressure and controllers responsible for regulatory adherence, the result is often the same: policies and systems that appear compliant on the surface, but quietly fall out of alignment at the transaction level. Unlike many compliance failures, this one rarely shows up at launch. It emerges later, through network audits, partner reviews, or acquirer inquiries, when exposure has already accumulated and remediation becomes unavoidable.

In this post, we’ll examine why debit card compliance continues to trip up otherwise disciplined organizations, and what that pattern reveals about how payment systems actually behave in the real world.

The rule that hasn’t changed

Despite years of innovation in payments, one principle has remained consistent across U.S. card networks:

Debit card transactions may not be surcharged.

This applies regardless of how the transaction is processed, whether it’s PIN-based, signature, keyed entry, or via a mobile wallet. Even when a debit card runs on credit rails, its classification does not change. From the network’s perspective, a debit card is always a debit card.

What makes this rule particularly unforgiving is that intent doesn’t matter. A general “card fee” or “non-cash adjustment” applied at checkout is still non-compliant if it affects debit transactions, even if the business’s stated goal is only to recover credit card costs.

Most violations don’t stem from deliberate policy decisions. They come from systems that apply fees broadly unless they are explicitly configured not to.

How violations actually happen

Consider a mid-sized retailer that introduces a 3% non-cash adjustment to offset rising interchange costs. Finance signs off. Implementation happens through the payment platform. Within weeks, the fee is live across all locations.

Transactions process smoothly. Customers don’t complain.

Three months later, a network compliance inquiry arrives. The system applied the fee to both credit and debit cards, and no one verified card-level logic before going live.

This is how most debit compliance issues emerge, not through edge cases or bad actors, but through perfectly functional systems behaving exactly as designed.

Why debit cards are treated differently

At checkout, debit and credit cards may look nearly identical. Operationally and legally, they are not.

Debit transactions draw funds directly from a customer’s bank account. Settlement is faster, fraud exposure is lower, and interchange rates are typically smaller. These transactions are also governed by Regulation E, which provides additional consumer protections.

Credit cards operate on a different economic model. They extend short-term credit, involve more intermediaries, and carry higher interchange to reflect greater risk and complexity. That distinction is why credit card surcharging is permitted in much of the U.S. and why debit surcharging is not.

Seen this way, debit rules aren’t arbitrary. They reflect how money moves, where risk resides, and how consumer protections are enforced.

Why compliance issues surface late

Debit surcharge violations are easy to miss because they rarely trigger immediate failure.

Debit transactions don’t decline. Networks don’t issue real-time warnings. Receipts often look identical unless you’re reviewing line-item detail. As a result, issues tend to surface only during audits, partner reviews, or network inquiries, often months after the first non-compliant transaction.

By then, exposure can be material.

When violations are identified, remediation is rarely optional. Networks typically require refunds to every affected cardholder, which can mean issuing thousands of micro-refunds across historical transactions. In repeated or systemic cases, merchants have even faced temporary suspension of card acceptance privileges.

Debit card must be excluded from surcharging

While credit card surcharging is permitted in most U.S. jurisdictions, it operates within a tightly defined framework. Network registration, disclosure requirements, brand-level application, and strict caps all exist to limit consumer confusion.

Crucially, debit cards (including prepaid and gift cards) must always be excluded, even when processed on credit rails. That single requirement introduces operational complexity many businesses underestimate, particularly as they scale across locations, platforms, and integrations.

Why cash discounting has gained traction

Cash discounting and dual-pricing models have emerged as alternatives to surcharging, though they carry their own trade-offs.

Rather than penalizing a payment method, these approaches reward one. The posted price remains consistent, and a clearly disclosed discount applies when cash is used. Debit and credit cards are treated uniformly, reducing the risk of inadvertently singling out debit transactions.

That said, dual-pricing introduces operational complexity. Pricing must be clearly communicated at point of sale. Staff training becomes critical to avoid customer confusion. Some jurisdictions impose additional disclosure requirements, and careful accounting is required to ensure discounts are properly recorded.

For businesses willing to manage these requirements, dual-pricing can offer more flexibility than surcharging, but it still requires deliberate design and ongoing governance.

Three things to verify now

Compliance isn’t a one-time configuration. It’s an ongoing condition that needs periodic verification, especially as systems, integrations, and pricing strategies evolve.

If your business applies any form of card-related fee or pricing adjustment, three checks are worth conducting now:

1. Verify debit transactions are fee-free

Pull a sample of recent debit transactions across multiple days and locations. Review line-item detail to confirm no surcharge, service fee, or non-cash adjustment appears. If your reporting doesn’t clearly distinguish debit from credit, that’s a visibility gap you can’t afford.

2. Test every payment flow with a debit card

Run real debit transactions across all environments where fees apply: in-store, e-commerce, mobile ordering, recurring billing. Compare receipts against identical credit card transactions. Any discrepancy in fee treatment indicates a configuration issue that needs immediate attention.

3. Confirm debit exclusions in platform settings

Most modern payment systems allow debit exclusions, but they’re not always enabled by default. Work with your payment provider or internal teams to confirm card-type detection is functioning correctly and applied consistently across all channels, especially after migrations, integrations, or processor changes.

If any inconsistencies surface, treat them as an operational priority. Debit compliance issues don’t resolve themselves, and exposure grows with every transaction.

The takeaway

Debit card compliance isn’t about memorizing rules. It’s about ensuring your pricing strategy and payment systems consistently reflect them as your business grows.

Companies that treat payments as governed infrastructure are far better positioned to scale without accumulating hidden risk. In an environment where compliance gaps surface slowly but carry real consequences, periodic verification isn’t overhead. It’s due diligence.

Not yet a Skyline Payments customer and want to learn more?

Get in touch today

Disclaimer: The information in this article is current as of January 2026 and based on U.S. card network rules and federal regulations governing debit card transactions. Payment processing rules and regulations may vary by jurisdiction and can change. Always consult with your payment processor, legal counsel, and compliance advisors for guidance specific to your business. This article does not constitute legal or financial advice.

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New Visa CEDP Level 3 requirements: what B2B merchants must do

Visa Level 3 Data Mandatory October 2025: Complete CEDP Compliance Guide Visa Level 3 Data Mandatory October 2025: Complete CEDP Compliance Guide Visa Level 3 Data Mandatory October 2025: Complete CEDP Compliance Guide
TL;DR: Starting October 2025, Visa’s new Level 3 interchange rates are live and Level 2 is being phased out (gone by April 2026). AI-powered systems now verify every transaction’s data quality. For B2B merchants processing $500K monthly, non-compliance could cost $60,000+ annually. This guide covers what changed, why it matters, and exactly what to do about it.

If you process B2B credit card transactions, October 2025 isn’t just another month on the calendar—it’s the moment your payment processing costs could silently skyrocket.

Visa’s Commercial Enhanced Data Program (CEDP) has officially entered its next phase, and the stakes have never been higher. Starting this month, new Level 3 interchange rates are in effect, and the traditional safety net of Level 2 processing is disappearing. For many B2B merchants, this could mean the difference between optimized payment costs and bleeding thousands of dollars monthly in unnecessary fees.

Here’s everything you need to know—and what you need to do about it.

What just happened in October 2025?

As of October 2025, Visa implemented two critical changes that fundamentally reshape B2B payment processing:

1. New Level 3 interchange rates are live

The discounted interchange rates that B2B merchants have relied on for years have been restructured. These new rates reward merchants who submit complete, accurate enhanced data—and penalize those who don’t.

2. Level 2 is on its way out

While Level 2 interchange rates won’t be fully discontinued until April 2026, Visa is systematically eliminating Level 2 as an interchange tier, pushing all B2B transactions toward the more rigorous Level 3 requirements.

The message from Visa is crystal clear: adapt to Level 3 data requirements now, or pay the price.

Understanding CEDP: The new rules of B2B payments

Visa’s Commercial Enhanced Data Program (CEDP) isn’t a minor policy tweak—it’s a fundamental reimagining of how B2B transactions are processed and priced.

The traditional system

For years, B2B merchants could qualify for reduced interchange rates by submitting varying levels of transaction information:

  • ○Level 1: Basic card information (highest rates)
  • ○Level 2: Additional data like tax amount, customer code, merchant tax ID (mid-tier rates)
  • ○Level 3: Detailed line-item data including product descriptions, quantities, unit costs, freight charges (lowest rates)

The system was forgiving. Submit some enhanced data, get some savings. Miss a few fields? You’d downgrade a level but still maintain reasonable rates.

The new reality: CEDP-powered processing

In the age of AI, Visa has introduced highly sophisticated verification and data-quality standards that rival the precision of a Swiss watchmaker.

Under CEDP, AI-powered systems now scrutinize every detail of enhanced data—no random selection, no manual spot checking, just algorithmic precision on every transaction, every time.

The system verifies:

  • •Invoice numbers and dates
  • •Item descriptions and product codes
  • •Quantities and unit costs
  • •Tax amounts and rates
  • •Freight and shipping charges
  • •Discount information
  • •Customer reference numbers
Here’s the critical difference: In the past, simply populating Level 3 data fields was often enough to secure better rates. Today, if your data doesn’t meet Visa’s quality and formatting standards, the transaction is flagged as non-compliant and automatically downgraded.
  • ✗Generic placeholders like “Misc Item” or “Service”? Downgraded.
  • ✗Incomplete tax information? Downgraded.
  • ✗Formatting errors in line items? Downgraded.

The financial impact: real numbers

This isn’t theoretical. Let’s look at a B2B merchant processing $500,000 monthly in corporate card transactions:

Scenario 1: Compliant Level 3 data

Interchange rate: ~1.95% + $0.10 per transaction

Monthly interchange cost: ~$9,800

Scenario 2: Non-compliant data (downgraded to standard commercial rate)

Interchange rate: ~2.95% + $0.10 per transaction

Monthly interchange cost: ~$14,800

Monthly difference: $5,000

Annual difference: $60,000

For a business processing $500,000 monthly, non-compliance with Level 3 requirements could cost $60,000 annually in unnecessary interchange fees. And that’s a conservative estimate—actual rates vary by card type and merchant category.

The Hidden Multiplier Effect

Beyond direct interchange costs:

  • ▸Processor markup fees often scale with interchange, compounding your costs
  • ▸Cash flow impact reduces profit margins on every transaction
  • ▸Competitive disadvantage if competitors are compliant and you’re not
  • ▸Time and resources spent investigating downgrades and fixing data issues

1 What Level 3 data actually requires

Level 3 data is comprehensive—and that’s by design.

Required fields:

Order-level information:

  • •Purchase order number
  • •Merchant tax ID
  • •Customer reference or code
  • •Tax amount and rate
  • •Freight/shipping amount
  • •Duty amount (if applicable)
  • •Destination zip code
  • •Invoice date

Line-item information (for each product/service):

  • •Item description (meaningful, not generic)
  • •Product code or SKU
  • •Quantity
  • •Unit of measure
  • •Unit cost
  • •Extended line amount
  • •Discount amount (if applicable)
  • •Tax rate and amount

What “quality data” actually means:

Submitting the fields isn’t enough. The data must be:

Accurate

Numbers must match your actual invoice. Tax calculations must be correct. Line items must add up properly.

Specific

“Office Supplies” won’t cut it. Visa wants “HP LaserJet Toner Cartridge – Black, Model CF287A.” Use manufacturer SKUs or specific part numbers, not generic placeholders.

Complete

Every field should contain real data. Don’t use default values like “0” or “N/A” unless genuinely applicable.

Properly formatted

Follow Visa’s requirements for dates, amounts, and text fields. Inconsistent formatting triggers AI flags.

Common mistakes that trigger downgrades:

  • ✗Generic item descriptions: “Services rendered,” “Products,” “Miscellaneous items”
  • ✗Missing or incorrect tax information
  • ✗Placeholder product codes: Using “00000” or “N/A” instead of real SKUs
  • ✗Incorrect line-item math: Extended amounts that don’t match quantity × unit cost
  • ✗Missing customer reference data
  • ✗Inconsistent formatting: Mixing date formats, incorrect decimal places
  • ✗Copy-paste errors: Same description for multiple different items
Visa’s AI checks all of this automatically, and it’s far less forgiving than any human reviewer.

2 The timeline: What’s coming next

What’s already happened:

  • ○October 2024: CEDP launched with light enforcement and data quality monitoring
  • ○April 2025: Visa began actively verifying merchant data accuracy using AI-driven systems
  • ✓October 2025: New Level 3 interchange rates took effect—financial impact of non-compliance significantly increased

What’s coming soon:

April 2026:

Visa will completely discontinue Level 2 interchange rates, expand qualifying BINs, and enforce Level 3 requirements across a broader range of commercial cards.

After April 2026

There won’t be a “middle tier.” You’ll either qualify for Level 3 rates or pay standard commercial rates—and the gap between those two will be substantial.

The window is closing

While April 2026 might seem far away, you need compliant systems and processes now. It takes time to upgrade payment systems, train staff, and test data submissions. Every day you delay means paying higher rates.

3 Action plan: What to do right now

1. Audit your current setup

Talk to your payment processor, gateway provider, IT, and accounting teams. Determine what level of data you’re actually submitting and how many B2B transactions qualify for Level 3 rates. Request a downgrade report from your payment provider showing where and why transactions are being downgraded.

Most merchants discover that fields they assumed were being sent actually aren’t—and fixing this alone can save thousands.

2. Evaluate your tech stack

Your ability to submit compliant Level 3 data depends on your systems. Key questions:

  • •Is your payment processor CEDP-capable and updated?
  • •Does your ERP sync properly with your payment system?
  • •Are you manually keying data or using outdated software?

If yes to the last question, it’s time to upgrade or add integration tools. Automate and validate as much as possible—manual processes are error-prone and don’t scale.

3. Clean up your data at the source

Even perfect systems can’t fix bad input. Review:

  • •Product catalogs: Accurate descriptions, codes, and prices
  • •Customer information: Complete billing and shipping details
  • •Invoices: Full line-item detail with proper tax calculations

Clean data at the source means better qualification rates and lower fees.

4. Get your team aligned and monitor continuously

Train your sales and finance teams on what quality data looks like and why it matters. Run test transactions, review reports monthly, and flag downgrades immediately.

CEDP compliance isn’t a one-time project—it’s an ongoing process. Work with payment providers and tech partners who understand Level 3 optimization and can help you stay compliant as requirements evolve.

Why Visa is making these changes

Before dismissing this as a revenue grab, understand Visa’s rationale:

Corporate card transparency

Finance teams need detailed data for automated reconciliation, audit compliance, fraud detection, and spending analysis—not hours matching receipts to statements.

Reducing risk and disputes

Complete transaction data significantly reduces chargebacks. When cardholders and their companies can see exactly what was purchased down to individual line items, there’s less confusion and fewer contested charges.

Industry standardization

For years, merchants submitted wildly inconsistent data quality. CEDP enforces standards that benefit the entire payment ecosystem.

Understanding Visa’s motivations doesn’t pay your bills, but it does explain why these requirements are here to stay.

The bottom line

Visa’s CEDP program and the October 2025 interchange changes aren’t going away. The era of “close enough” enhanced data submission is over.

For B2B merchants, the choice is clear: invest the time and resources to comply with Level 3 requirements, or pay thousands—potentially tens of thousands—more annually in unnecessary processing fees.

The good news? This is entirely within your control. With the right payment systems, processes, and attention to data quality, you can qualify for the best possible interchange rates and turn CEDP compliance into a competitive advantage.

Don’t let compliance cost you thousands in processing fees

Get your free Level 3 audit today

Disclaimer: The information in this article is current as of October 2025 and based on Visa’s announced CEDP requirements and publicly available interchange documentation. Payment processing rules and rates may change. Always consult with your payment processor and financial advisors for guidance specific to your business. For the most current information, visit Visa’s official commercial payment resources at visa.com.

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5 things to look for when choosing the best payment processor for your business

Choosing the Best Payment Processor
Selecting the right payment processor can make or break cash flow for small and mid-sized businesses (SMB) that rely on invoiced payments rather than in-person sales. Unlike retail transactions, invoice payments often involve larger amounts, longer payment cycles, and higher processing fees—challenges that generic payment solutions aren’t built to handle.

The best payment processor does more than move money—it integrates with your accounting systems, reduces administrative work, and helps you get paid faster. Here are five critical factors every SMB should evaluate before choosing a B2B payment processor.

1
Seamless integration with your existing accounting system

One of the biggest pain points for SMBs is the manual work required to reconcile payments with their accounting records. The best payment processor will integrate directly with popular accounting platforms like QuickBooks and NetSuite, automatically syncing transaction data and eliminating the need for double entry.

When payments are processed, transaction details should flow automatically into your accounting system, including customer information, invoice numbers, and payment amounts. This integration not only saves hours of manual work each month but also reduces errors and provides real-time visibility into your cash flow.

Look for processors that offer:

  • ✓Native integrations with your current accounting software
  • ✓Automatic Invoice and deposit reconciliation
  • ✓Real-time synchronization of payment data
  • ✓Detailed reporting that matches your accounting needs
  • ✓Cost recovery options like credit card surcharging or cash discounting programs
Time-Saving Impact: The time saved on reconciliation can be reinvested in growing your business rather than managing administrative tasks. Many businesses report saving 8-15 hours monthly when switching from manual reconciliation to automated integration.

2
Expertise in high-volume B2B transactions

Most payment processors are designed for small retail transactions, but B2B companies often deal with invoices of $20,000, $50,000, or even higher amounts. Processing these large transactions requires specialized expertise and different risk management approaches.

The best payment processor for high-volume B2B transactions will offer:

  • ✓Higher per-transaction limits without special approvals
  • ✓Understanding of B2B payment timing and cash flow patterns
  • ✓Experience working with your specific industry’s payment challenges
  • ✓Appropriate underwriting processes that don’t flag legitimate business transactions

Processors with B2B expertise understand that a $30,000 transaction from an established customer carries different risks than 300 separate $100 retail purchases. They’ll have streamlined processes for large transactions and won’t subject your funds to unnecessary holds or delays.

Red flag: Be cautious of processors that require manual approval for transactions over $10,000 or treat all high-value transactions as potentially fraudulent. This can severely impact your cash flow and customer relationships.

3
Level 3 processing capabilities

Credit card processing fees can quickly eat into profit margins, especially on large B2B transactions. Level 3 processing, also known as commercial card optimization, can significantly reduce these costs by providing additional transaction data that qualifies your payments for lower interchange rates.

Level 3 processing requires sending detailed line-item information such as product descriptions and quantities, tax amounts, and merchant tax ID. While this requires more work on the backend, the fee savings can be substantial. For large B2B transactions, Level 3 processing can reduce credit card fees by 0.5% to 1.5% per transaction, which adds up quickly on high-volume payments.

Cost Savings Insight: The best payment processor will make Level 3 processing easy by automatically pulling this data from your accounting system and formatting it properly for card networks. They should also help you identify which transactions qualify and ensure you’re maximizing your savings opportunities.

4
Tools to improve DSO and cash flow

Days Sales Outstanding (DSO) is a critical metric for B2B companies, measuring how quickly customers pay their invoices. The best payment processor won’t just process payments when they arrive—they’ll help you get paid faster and more predictably.

Look for processors that offer:

  • ✓Multiple payment options to make it easier for customers to pay
  • ✓Automated payment reminders and follow-up sequences
  • ✓Partial payment capabilities for large invoices
  • ✓Recurring payment setup for subscription or contract-based services
  • ✓Real-time payment tracking and customer communication

The right processor will also provide detailed reporting on payment patterns, helping you identify which customers consistently pay late and which payment methods result in faster collection. This data enables you to make informed decisions about credit terms and collection strategies.

Industry insight: Companies that offer multiple payment methods typically see 15-25% faster payment collection compared to those accepting only checks or single payment types.

5
Exceptional customer service and support

Payment processing issues can directly impact your cash flow and customer relationships, making reliable support absolutely critical. The best payment processor will provide knowledgeable support when you need it most.

Look for processors that offer:

  • ✓A support team that actually picks up the phone
  • ✓Dedicated account managers who understand your business
  • ✓Technical support for urgent payment issues
  • ✓Transparent fee structures without hidden costs

A payment processor that views your success as their success will go beyond basic transaction processing to help you optimize your payment workflows and improve collection rates. They should be willing to work with you to customize solutions that fit your specific industry and business model.

Making the Right Choice for Your Business

Choosing the best payment processor for your SMB requires looking beyond just processing rates and transaction fees. The right solution will integrate with your existing workflows, provide exceptional support, handle your transaction volumes professionally, optimize your processing costs, and actively help improve your cash flow.

Key Evaluation Steps:

  • →Request demonstrations that show real integration capabilities
  • →Ask about their experience with businesses similar to yours
  • →Understand exactly what support you’ll receive as a customer
  • →Evaluate how each processor addresses the five key areas outlined above

The best payment processor becomes a strategic partner in your business growth, not just a vendor that moves money around. Choose wisely, and your payment processing solution will support your business success for years to come.

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