transaction-limit

Vocabulary Word

Definition

Think of 'transaction limit' as a rule about how much you can buy or sell. It's like having a limit on how many pizzas you can order from a shop, even if you have the money for more.

Examples in Different Contexts

In payment processing, transaction limits are set to control the risk of high-volume fraud and to comply with regulatory requirements. A payment processor might note, 'We impose transaction limits to protect our customers and comply with anti-money laundering regulations.'

Practice Scenarios

Business

Scenario:

Due to the current banking policy, we may have issues with making larger purchases.

Response:

I think we should consider the transaction limit while planning the procurement of costlier assets.

Banking

Scenario:

Did you experience difficulty while trying to withdraw money from the ATM?

Response:

I did, and I was told that I reached my daily transaction limit.