Floor Limit Meaning

The largest amount of money you can spend using a credit card or bank card without a store needing.

Floor limit meaning.

Floor limits were of more significance when most credit card merchants processed transactions by taking a physical imprint of the card rather than electronically swiping the magnetic. The floor limit is a predetermined limit set by the merchant and the creditor. The int function short for integer is like the floor function but some calculators and computer programs show different results when given negative numbers. In mathematics and computer science the floor function is the function that takes as input a real number and gives as output the greatest integer less than or equal to denoted or similarly the ceiling function maps to the least integer greater than or equal to denoted or.

A purchase amount over which further authorization is needed by the merchant. The term floor limit comes from the days when it was the maximum amount which could be approved on the floor of the retailer beyond which the cash register operator would have to call for approval. For a charge above the floor limit the merchant must obtain authorization from the card issuer. An amount that visa and mastercard have established for single transactions at specific types of merchant outlets and branches above which authorization is required.

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. A zero floor limit means every credit card transaction has to be authorized. In credit card purchases the maximum amount the merchant can charge to the buyer s card without getting authorization.