data will default into higher-cost fee brackets, resulting in 0.5% to 1% higher interchange fees. However, there is a significant upside for verified merchants. While a 0.05% participation fee is applied to all CEDP transactions, the overall interchange rates for verified data have been reduced by roughly 7-10%. Large Ticket purchases see the most significant rate reductions, which is incredibly beneficial for wholesale auto transactions. For instance, under CEDP, the Corporate Large Ticket and Purchasing Large Ticket rates drop from 1.45% + $35 down to 1.30% + $35. HOW TO PREPARE YOUR DEALERSHIP TODAY Following Visa’s April 2026 Level 2 sunset, dealerships must take action to protect margins. Here is a step-by-step guide: 1. Audit Your Data Flows: Verify that your point-of-sale (POS), dealership management system (DMS) and payment gateway can capture all required Level 3 fields and transmit them accurately. 2. Automate Your Compliance: Relying on staff to manually enter line-item data can lead to validation errors. Modern payment gateways can automatically enrich Level 3 data, filling in missing invoice numbers, tax and remittance details to ensure full compliance before the transaction is submitted. Real-time compliance tools and built-in alerts help catch missing data instantly. 3. Educate Your Team: Train your accounting, finance and fixed-operations staff on the importance of quality data and how to spot errors. Visa monitors this status monthly, so maintaining high data quality is essential to keeping your verified status. 4. Re-Evaluate Surcharging: With the complexities of CEDP and the baseline costs of accepting business credit cards, this regulatory shift provides a compelling reason for dealerships to explore compliant surcharging programs, where permitted by law and card brand rules, to help offset B2B processing fees. Accepting commercial cards is vital to your dealership’s operations, whether you act as a parts distributor, wholesaler or fleet servicer. By upgrading your payment technology and ensuring CEDP compliance, you can avoid unexpected penalties and secure the lowest possible interchange rates for your business. Visit prioritycommerce.com to learn more. What will tomorrow look like? hubinternational.com Scan the QR code to learn more. It may not be what you expected. With HUB, you have a partner who is committed to supporting and protecting you, assisting to align business and personal goals to protect your profits and drive organizational vitality and resilience. Risk & Insurance | Employee Benefits | Retirement & Private Wealth David W. Alligood, Senior Vice President Office: 225-218-2410 david.alligood@hubinternational.com 19
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