Zero Floor Limit

Floor limits are simply the maximum amount a merchant can charge a user's credit card without requiring authorization from the bank. A zero floor limit means that authorization is required for every single purchase.

Having a zero floor limit can help merchants stop invalid transactions before they occur. If every purchase requires checking with the bank prior to the sale, there is less opportunity for an expired or stolen card to be used.

Floor limits were created in a time where manually calling and obtaining authorization for every single card transaction was time-consuming for both the merchant and the customer. To help alleviate this, smaller transactions were allowed to be conducted from the sales “floor,” but only up to a certain amount (typically $10-20). With modern technology, however, transactions can be authorized in near-real time. Speed and automation have effectively rendered floor limits obsolete, and having a floor limit of zero is now the norm.