In credit card purchases, the maximum amount the merchant can charge to the buyer's card without getting authorization. For a charge above the floor limit, the merchant must obtain authorization from the card issuer. A zero floor limit means every credit card transaction has to be authorized. The floor limits usually come into effect where swiping the card is not possible for any reason and the transaction is not completed electronically. Otherwise, in all credit card transactions conducted over phone lines (by using a magnetic card reader), the merchants typically prefer to obtain electronic authorizations even for small amounts. In case of debit cards, all transactions have to be authorized. also called fallback limit (in the U.K.)
Related information about floor limit:
- Floor limit - Wikipedia, the free encyclopedia
A floor limit is the amount of money above which Visa transactions must be authorised. The limit can vary from store to store. Floor limits do not apply to certain ...
- What is floor limit? definition and meaning
Definition of floor limit: In credit card purchases, the maximum amount the merchant can charge to the buyer's card without getting authorization. For a charge ...
- Floor Limit Definition | Investopedia
A purchase amount over which further authorization is needed by the merchant. The floor limit is a predetermined limit set by the merchant and the creditor.
- Zero-Floor Limit Definition | Investopedia
Floor limit refers to the limit above which credit or debit transactions require authorization - when that limit is zero, all transactions require authorization, ...
- Credit Card Processing Floor Limit
Dec 26, 2009 ... Credit Card Processing Floor Limit Floor limit is the amount above which credit card transactions must be authorized before being processed.
- Standard Floor Limit - Credit Cards
A standard floor limit is a kind of limit set in place on credit or debit card purchases with a merchant. The limit is a specific dollar amount.
- What is Credit Card Processing Floor Limit | Paynet Systems
Floor limit signifies the payment amount above which credit or debit card transactions must be authorized before being processed. It varies from business to ...
- Floor limit: Definition from Answers.com
Floor Limit Largest credit card a retail merchant may accept without obtaining authorization by the card issuer.