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    What is a Floor Limit?


    What is a Floor Limit?


    A floor limit is the maximum dollar amount that a Merchant can charge to a cardholder without authorization. If you set up a floor limit on your terminal, any transaction with an amount less than the floor limit will be automatically approved without the terminal contacting the card-issuing bank. This can result in a risk of cardholder disputes or chargebacks. The floor limit is most commonly used by businesses doing a high volume of low-dollar transactions, such as fast-food restaurants and convenience stores.

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