Why Messy Merchant Data Could Make B2B Payments More Expensive

The mechanics of many merchants’ B2B payments have long been a source of frustration rather than transformation.

Negotiating interchange, switching processors or steering customers toward cheaper rails were the primary levers available to merchant finance teams, and the headaches of manual entry were simply accepted as part of doing business.

But in 2026, something fundamental is changing. The rules that govern B2B card payments, being rewritten by initiatives from Visa, Mastercard and other networks, are elevating data quality from a compliance footnote to a driver of profit and working capital.

While Level 2 transaction data, such as sales tax and purchase order number, has traditionally represented the good-enough middle-tier for B2B payments (a step above just date and amount), Visa’s launch of the Commercial Enhanced Data Program and related moves by Mastercard have put Level 3 and above as the new benchmark. That requires merchants to include line-item details, such as product descriptions, SKUs, unit prices and more, as the new benchmark.

This April is the official sunset of Level 2 for nearly all Visa commercial and small business cards, and other networks are on similar timelines. Money can move without data, but it will cost more, reconcile more slowly and invite scrutiny. For merchants willing to invest in automation and integrity, the reward is not just lower fees, but a more profitable, more scalable way to do business.

Read also: How Payments Automation Helps CFOs Keep Up With Their Own Data

The End of Good-Enough Data

Beginning in late 2025, Visa rolled out artificial intelligence-driven validation of what it now calls Product 3 data, a rebranding and tightening of what was previously known as Level 3. Mastercard has followed a parallel path with enhanced scrutiny under its Commercial Connect framework. These systems no longer check whether fields are populated; they verify whether the transaction math reconciles. Unit price multiplied by quantity, plus tax and freight, must equal the authorized total. Even minor rounding discrepancies can cause a transaction to fail validation.

From the networks’ perspective, the push toward data integrity is defensive and strategic. AI-powered spend management and agentic commerce require invoice-quality data to function. Enforcing that standard at the network level ensures consistency while feeding higher-quality data into fraud detection and analytics systems.

Zach Lynn, head of customer data and insights at Boost Payment Solutions, wrote in the PYMNTS eBook “Headlines That Will Shape the Close of 2025” that data exchange has become non-negotiable in the payments industry.

“In today’s environment, seamless, secure data flows between buyers, suppliers and financial institutions are essential,” Lynn wrote. “Whether it is enabling real-time reconciliation or supporting advanced analytics, the ability to move and leverage data is now table stakes for any organization serious about optimizing working capital.”

Until recently, commercial card transactions operated on an honor system. Merchants could pass along additional data, like tax totals, purchase order numbers and line-item detail, to qualify for lower interchange rates. In practice, much of that data was messy. Gateways auto-filled fields with zeros. Descriptions were generic. Arithmetic inconsistencies were common. The data existed, but it was rarely audited.

At first glance, the updated data requirements may sound like a compliance headache. For many merchants, they may end up becoming one. Failed validation can result in immediate downgrades to standard interchange rates, often increasing costs by 40% to 50% on affected transactions. But for merchants who adapt, the same system creates a clear, repeatable way to make more money without raising prices or volume.

See also: Why Smart CFOs Are Rethinking How Money Moves

How Automation Is Becoming a New Margin Lever

As the April transition deadline approaches for merchants, the networks’ technical updates to commercial interchange are evolving into a structural change in how value is distributed across the B2B payments ecosystem. Accuracy, once treated as overhead, is now a measurable asset. Payments, once a cost center, are becoming a place where disciplined merchants can outperform their peers.

“Payments are no longer a commodity,” Boost Payment Solutions Chief Revenue Officer Seth Goodman told PYMNTS in October. “They’re truly a strategic advantage when properly optimized.”

The merchants best positioned to benefit from this system share the common trait of automation. Specifically, they have direct integrations between their ERP or invoicing systems and their payment gateways. When line-item data flows programmatically from invoice to authorization without manual re-entry, the risk of arithmetic mismatch drops. What once seemed like an IT hygiene project now functions as a margin optimization strategy.

This is where the story turns from payments infrastructure to business strategy. Clean transaction data does more than reduce interchange. It accelerates reconciliation, shortens days sales outstanding and reduces disputes. For buyers using modern spend management platforms, it improves visibility and control, making verified merchants easier to work with. Over time, that ease translates into preference, faster approvals and repeat business.

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