Go Over Credit Card Processing Limit– Business is all about taking risks. But that doesn’t mean you need to take risks in every aspect of the business. Especially when it comes to the banks and card networks, you need to play with their rules. Otherwise, it can cause great loss to you and your business.
Similarly, the credit card processor offers a limit to the merchant. If a merchant found out to go over Credit Card Processing Limit, can be subjected to fine. Let’s discuss this in more detail.
WHAT IS CREDIT CARD PROCESSING LIMIT?
When a merchant applies for the credit card transaction for his business, he is given with a monthly transaction limit. This limit is decided by the card network after evaluating the merchant business type. A merchant can ask to increase this limit as per his requirement.
The Credit Card Processing Limit is applied to the amount exchanged by the merchant in the span of a month. If the merchants Go Over Credit Card Processing Limit, they will be charged with a penalty.
WHY CREDIT CARD PROCESSING LIMIT IS IMPORTANT?
The card networks put up the credit card processing limit for the merchant,
- To minimize the chances of various frauds such as money laundering
- To keep the chargeback under a limit. (Less Transaction, Less Disputes)
The limit is generally set after keeping the business type of the merchant in mind. If the merchant is exceeding that limit then card networks are obligated to take it as a fraud.
Hence, in order to avoid any unnecessary investigation, a merchant needs to keep the transaction within the processing limit.
DEFINE “GO OVER CREDIT CARD PROCESSING LIMIT”
When a merchant does not stay within credit card processing limit and continues to exceed the limit, month after month, he/she will be penalized by a fine.
The credit card network sets the limit depending upon the risk in your business. The merchant with higher risks generally has a greater credit card processing limit.
If a merchant is frequently going over the Credit Card Processing Limit then he/she can be defined as a high-risk business merchant.
HOW TO AVOID CROSSING CREDIT CARD PROCESSING LIMIT?
Now that you know going over credit card processing limit can hurt your business, you need to avoid crossing the limit. Take these points into :
- Apply To Increase The Limit – If your business is expanding and you need to make more transaction. Then you need to simply apply to increase credit card processing limit.
- Create Monthly Sales Chart & Overestimate It – It is important to evaluate the monthly transaction to create next months chart. Now using these details, you will get the idea of the number of transaction possible in next month. Just do not stop there, increase that number by a few percentages and overestimate it to avoid going over Credit Card Processing Limit.
- Contact Credit Card Processors To Customize the Limit For You – Finally, you can contact your processor and explain them your situation. Check whether there is anything possible to avoid crossing credit card processing limit.
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FAQ’S – GO OVER CREDIT CARD PROCESSING LIMIT
- How much can I go over my credit card limit?
- You cannot. The transactions will be declined immediately.
- What is going over credit limit in Chase?
- It changes from customer to customer. You can contact Chase for more information related to credit card limit.
- Does going over credit card limit hurt credit score?
- Yes, it hurts the credit score.
- How much can you go over your credit limit?
- Generally, the transaction is declined if the credit limit is exceeded. However, some service provider can exceed the limit if returned with interest.
- Can I still use a credit card if over limit?
- No, you cannot. Contact your service provider for more information.
These are some of the common questions of users for “Go Over Credit Card Processing Limit” query. You can contact Merchant Stronghold to get answers to all your questions related to Credit Card Processing Limit.
Also, Merchant Stronghold offers assistance to the merchant with high-risk business and credit card processing. Feel free to contact us using our toll-free number +1 (888) 622 – 6875.