Over-Limit/Overlimit

The term "over-limit" or "overlimit" refers to a situation where a cardholder exceeds the predetermined credit limit on their payment card. This condition arises when the total charges on the card surpass the maximum amount of credit the card issuer has authorized the cardholder to use.

When an account goes over-limit, the card issuer may take one of several actions:

Cardholders can typically avoid over-limit fees and complications by closely monitoring their account balances and staying within their credit limits. Many credit card issuers also offer alerts and tools to help manage spending and avoid surpassing credit limits. Additionally, some issuers provide the option to opt-in for over-limit protection, which allows transactions to go through even if they exceed the limit, with the understanding that fees may apply.