The Learning Center
Terms that begin with F
A floor limit is a set amount that credit card companies have determined to allow retailers to approve without special authorization anything above that amount requires special authorization. The term floor limit comes from a time when a person working the cash register at a retail business, or "working the floor", would be able to authorize purchases up to a certain amount and had to obtain approval from management for anything above that amount.
Floor limits were used more prior to the use of electronic readers of magnatized cards, when in order to process a credit card transaction it was required to make carbon copies of the cards and send them in manually for payment. With today's technology most retailers choose to get automated authorization through electronic means on every transaction. This also helps prevent identity theft and use of stolen cards. Floor limits are still used in some instances but not as much as in the past.
Copyright © 2002-2018
Best Credit Card Reviews
* See the online credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the "Apply Here" button, you can review the credit card terms and conditions on issuers website.