New rules for B2B Merchants using automated software that is adding in level 2 and level 3 data.
Visa is set to make a significant shift in how enhanced transaction data is handled. As part of its April 2025 Association Updates, Visa will be leveraging Artificial Intelligence (AI) to evaluate the quality of enhanced data at the Level 2 (L2) and Level 3 (L3) stages. Therefore, this update is poised to change the landscape for merchants and acquirers alike. Visa’s data-driven evaluation aims to ensure higher standards and consistency.
One of the most notable changes is the introduction of AI to assess the quality of the enhanced data submitted with transactions. Traditionally, data quality was manually checked. However, with the incorporation of AI, the evaluation process will become more automated and consistent. Consequently, this means that every piece of enhanced data—from detailed item descriptions to tax amounts and freight charges—will be scrutinized more rigorously than ever before. Visa’s data-driven evaluation will make sure every detail is up to par.
With the new system in place, all enhanced data must meet Visa’s precise quality and formatting standards. If the data does not comply, it will be flagged as non-compliant. This non-compliance tagging is crucial because it directly affects the interchange qualification process. Therefore, transactions with flagged data may face higher processing fees, making compliance not just a matter of accuracy but also of cost efficiency. Visa’s data-driven evaluation will play a crucial role in maintaining these standards.
For merchants and acquirers, these changes are a call to action. The new requirements mean that existing processes and systems may need an upgrade to ensure that all enhanced data submissions are accurate and fully compliant. Failure to meet these standards could result in higher fees due to non-compliance, potentially affecting a business’s bottom line. Visa’s data-driven evaluation will be essential to avoid these fees.
By enforcing these higher standards, Visa aims to improve overall data integrity. Indeed, accurate and well-formatted data not only helps in processing transactions smoothly but also plays a significant role in fraud detection and risk management. Consequently, improved data integrity leads to better insights, reduced disputes, and overall streamlined operations. Visa’s data-driven evaluation will be key in achieving this.
The shift to an AI-driven evaluation process is designed to bring more objectivity and consistency to the assessment of transaction data. This change will likely reduce errors associated with manual reviews and could ultimately lead to more efficient and secure payment processing. For businesses, this means fewer headaches over disputed data submissions and a more transparent process for managing interchange rates. Visa’s data-driven evaluation will make the entire process more reliable.
As the April 2025 deadline approaches, it is essential for merchants and acquirers to review their current data submission processes. Therefore, evaluate whether your systems are capable of meeting the new enhanced data requirements. Consequently, upgrading your systems or adjusting your workflows now could save you from costly penalties and higher fees in the future.
Ensure that your teams are aware of these upcoming changes. Thus, training sessions and clear guidelines on data formatting and quality can go a long way in helping your business adapt to these new requirements. Consequently, staying ahead of the curve will not only ease the transition but also maintain your competitive edge in a rapidly evolving payment landscape.
Visa’s decision to employ AI for enhanced data evaluation marks a significant step toward a more robust and efficient interchange system. By raising the bar for data quality, Visa is setting a new standard that could redefine how transactions are processed industry-wide. Visa’s data-driven evaluation will be at the heart of this transformation.
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Visa is introducing AI to evaluate enhanced transaction data quality, ensuring that all data meets strict quality and formatting standards. Therefore, non-compliant data will be flagged, which may lead to higher processing fees.
The AI-driven process will automate data quality assessments, reducing manual errors and inconsistencies. However, it also means that merchants and acquirers must ensure their data submissions are accurate and complete to avoid penalties.
Transactions with data that fail to meet Visa’s quality standards will be tagged as non-compliant. Consequently, this could result in higher interchange fees, impacting overall processing costs.
Businesses should review and potentially upgrade their data submission systems, invest in staff training, and ensure clear guidelines are in place for accurate data collection and formatting.
What benefits does Visa expect from these updated data requirements?
The enhanced requirements aim to improve overall data integrity, streamline payment processing, and bolster fraud detection measures, ultimately leading to more efficient and secure transactions.
The post Visa’s Data-Driven Evaluation Changes for 2025 appeared first on Customized Payment Processsing Solutions.
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