Overview
Transaction limits are a crucial aspect of managing risk and ensuring the security and stability of financial operations. In the ezyCollect platform, these limits include both a per-transaction limit and a daily transaction limit. This article will explain these limits, why they are important, how they protect all parties involved in the transaction process, the risks associated with online transactions, and how these limits are determined.
What Are Transaction Limits?
Per-Transaction Limit: This is the maximum amount that can be processed in a single transaction through the ezyCollect platform. It ensures that no single transaction exceeds a predefined value.
Daily Transaction Limit: This is the total amount that can be processed in one day through the ezyCollect platform. Once this limit is reached, no further transactions can be processed until the limit resets the following day.
Per-Transaction Refund Limit: This is the total amount of refund that you can process on a single transaction. This is equivalent to your per-transaction limit given that the latter is not more than $25,000 (Risk team may indicate otherwise). This is also fixed and cannot be increased. If you need to refund more than this limit, the refund amount exceeding this limit needs to be done outside the platform.
Why Are Transaction Limits Important?
Transaction limits are crucial for safeguarding your business, cardholders, your payment provider (ezyCollect), and financial institutions from various credit risks that arise when transacting online. Here’s how they help:
Fraud Prevention: Limits cap the amount that can be moved in a single transaction or day, reducing the risk of unauthorised transactions. This is vital in preventing credit card fraud, where fraudulent transactions could lead to chargebacks and financial loss for your business.
Risk Management: By keeping transactions within safe ranges helps to limit/minimise the chance of disputes and chargebacks, which can result from fraud, customer dissatisfaction, or non-delivery of goods. Chargebacks not only affect revenue but can also incur fees and penalties.
Financial Security: Limits prevent excessive transfers due to errors or unauthorised access, helping you maintain control over your finances and avoid significant losses.
Financial Exposure: When processing online transactions, you extend credit to customers until payment is settled, exposing you to risk. Transaction limits help manage this exposure by monitoring and controlling your transaction volume.
Transaction limits are vital for managing risk and ensuring the security of your business. These limits protect not only your business but also all parties involved, ensuring a secure and stable transaction environment for all. By understanding and complying with these limits, you can maintain seamless payment processing and safeguard your financial operations while mitigating exposure to credit risk.
For more information or to request a limit adjustment, please reach out to the Payments Team at payments@ezycollect.com.au