Floor Limit

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.

The term originates from when most credit card transactions were done manually rather than electronically. It was a way to ensure that the credit was available to the consumer before the transaction was completed.


Investment dictionary. . 2012.

Look at other dictionaries:

  • floor limit — ➔ limit1 * * * floor limit UK US noun [C] COMMERCE ► the largest amount of money you can spend using a credit card or bank card without a store needing permission from your bank or credit card company: »Payment is guaranteed for all sales above a …   Financial and business terms

  • floor limit — noun An amount above which a credit card sale must be authorized by the card company, varying from one shop, etc to another • • • Main Entry: ↑floor …   Useful english dictionary

  • Floor limit — A floor limit is the amount of money above which credit or debit card transactions must be authorised. The limit can vary from store to store. Floor limits do not apply to certain types of debit card (such as Visa Electron and Solo), as these… …   Wikipedia

  • Floor limit —   An ISO term. A card transaction limit beyond which an authorisation is required …   International financial encyclopaedia

  • floor limit — / flɔ: ˌlɪmɪt/ noun a highest sale through a credit card that a retailer can accept without having to get authorisation from the bank that issued the card …   Dictionary of banking and finance

  • Zero-Floor Limit — A retail authorization system in which all of a merchant s credit or debit transactions must be checked against the card s outstanding balance due and/or any Warning Bulletin listings about past due or over limit accounts before processing. Floor …   Investment dictionary

  • limit — See price limit, position limit, and variable limit. The CENTER ONLINE Futures Glossary See trading limit. Bloomberg Financial Dictionary A contract s maximum price advance or decline from the previous day s settlement price permitted in one… …   Financial and business terms

  • Limit state design — (LSD) refers to a design methodology used in structural engineering. The methodology is in fact a modernization and rationalization of engineering knowledge which was well established prior to the adoption of LSD. Beyond the concept of a limit… …   Wikipedia

  • floor — n 1 a: a main level space (as in a stock exchange or legislative chamber) distinguished from a platform or gallery b: members of an assembly took questions from the floor c: the right to address an assembly the senator from Utah has the floor 2 …   Law dictionary

  • Floor sanding — is the process of removing the top surfaces of a wood floor by sanding with abrasive materials. A variety of floor materials can be sanded, including timber, cork, particleboard, and sometimes parquet. Some floors are laid and designed for… …   Wikipedia

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