Floor Limit


DEFINITION of '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.

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  2. Creditor

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    A card issued by a financial company giving the holder an option ...
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    1. A contractual agreement in which a borrower receives something ...
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    The act of providing funds for business activities, making purchases ...
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    The lowest acceptable limit as restricted by controlling parties. ...
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