FLOOR LIMIT

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion


HI


Can anybody explain to me what is the difference between floor limit and card limit I find in textbook but I did not get the corrcetmeaning.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:FLOOR LIMIT

    A floor limit is a limit which retailers set before they check that the transaction is not from a stolen card etc.

    Example, shop sets a floor limit of £1,000 and a customer buys a plasma TV for £1,200.

    The retailer would phone the card company to check the card is not stolen or there is a built in system which checks this when your card is swiped - which explains why sometimes it can take a while to approve!

    Hope that helps!

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