CASH LIMIT Meaning and
Definition
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Cash limit refers to the maximum amount of money that an individual can withdraw or spend using a credit or debit card within a specified period. It is a predetermined monetary restriction imposed by financial institutions to ensure responsible and controlled usage of the card. The cash limit is typically separate from the overall credit limit on the card, which signifies the total amount of credit extended to the cardholder.
The cash limit serves as a precautionary measure against potential fraud or misuse of the card. It aims to manage the risk associated with the card by restricting the amount of physical cash that can be obtained at one time through an ATM or over-the-counter withdrawal. The limit may vary depending on the cardholder's creditworthiness, income, and other factors that the financial institution considers while granting the card.
Exceeding the cash limit can result in transactions being declined, even if the overall credit limit has not been reached. It is crucial for cardholders to remain aware of their cash limit to avoid any inconvenience when requiring cash immediately. Moreover, the cash limit is distinct from the cash advance feature, which allows cardholders to withdraw cash using their credit cards, usually with higher interest rates and associated fees.
In summary, the cash limit is the maximum amount of money that can be withdrawn or spent using a credit or debit card within a specified timeframe, separate from the overall credit limit on the card. It provides a safeguard against potential misuse of the card and helps manage the risk of fraud.
Common Misspellings for CASH LIMIT
- xash limit
- vash limit
- fash limit
- dash limit
- czsh limit
- cssh limit
- cwsh limit
- cqsh limit
- caah limit
- cazh limit
- caxh limit
- cadh limit
- caeh limit
- cawh limit
- casg limit
- casb limit
- casn limit
- casj limit
- casu limit
- casy limit
Etymology of CASH LIMIT
The word "cash" originated from the Middle French word "casse", meaning "money box" or "money". The term "limit" comes from the Latin word "limitis", meaning "boundary" or "border". Therefore, the etymology of the phrase "cash limit" can be understood as a combination of these two words, referring to the predetermined boundary or maximum amount of money that can be withdrawn or spent.
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