DEFINITION of '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 limit refers to the limit above which credit or debit transactions require authorization - when that limit is zero, all transactions require authorization, regardless of their size.

BREAKING DOWN 'Zero-Floor Limit'

The zero-floor limit is especially applicable in situations where the merchant does not have physical access to the customer's credit card, such as online and mail-order merchants. In such cases, the floor limit is always zero. Authorization is provided electronically through the debit or credit card's issuer.

  1. Standard Floor Limit

    The amount of money that can be charged in a transaction before ...
  2. Authorized Amount

    Authorized amount is a sum that a merchant transmits to a credit ...
  3. Card Recovery Bulletin

    A paper listing of lost, stolen, past-due, over-limit, counterfeit ...
  4. Authorization Date

    The month, day and year when a credit card transaction is approved ...
  5. Per Transaction Fees

    An expense a business must pay each time it processes a customer’s ...
  6. Merchant Agreement

    A contract between a business and a credit card service provider.
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