What is a Credit Limit?

A credit limit is the extension of funds or charges issued by a bank or lender at a specified amount that allows a consumer to purchase goods or services from a Merchant.  The consumer then pays back the bank either in full or in installments, at an interest rate determined by the bank.

Electronic Merchant Systems Payment Processing Glossary :

Defining key payment processing and merchant services industry terms to help business owners make better decisions.




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