Daily spending limit

What It Means

A daily spending limitCredit limitThe most your card company lets you owe on a credit card or line of credit at one time. See more is the most your bank lets you spend with your debit card, or take out at an ATM, in a single day. According to Chase, the daily purchase limit is separate from the ATM withdrawal limit and often higher, and some banks count both toward one combined daily total. The limit is a cap set by the bank for your card, separate from your balance, so a purchase can be declined for going over it even when the money is in the account.

How It Sounds at Home

• "My card got declined at the furniture store, and I had the money."
• "I can only pull $500 from the ATM a day."
• "Call the bank and ask them to raise the limit for tomorrow."

The Breakdown

Worked example. Dana's card has a $500 daily ATM limit and a $2,500 daily purchase limit (example numbers; banks set their own). She plans to take out $300 in cash and put $1,800 on the card for a used couch and groceries.

Both fit. If Dana's bank counted the cash toward the same $2,500 total, the purchase room would be $2,500 − $300 − $1,800 = $400.

What the result means. Room left at zero or above means the day's plan fits inside the limits. A negative number means the bank may decline whatever pushes you over, even with money in the account, so split the purchase across two days or ask the bank about an increase first.

How to find and change your limit

1. Look in the account documents you got when you opened the account, where Chase says the limit is usually listed, or in your bank's app.
2. Check the app or online banking for a card limits setting. U.S. Bank calls its version Manage Debit Card Limits.
3. Call the number on the back of your card.
4. Before a big purchase, ask whether the bank will raise the limit for a day or for good. Chase says some banks allow either.

Good to Know

Chase says your ATM withdrawal limit is usually in the documents you received when you opened the account and may also show in your bank's app, and that some banks will raise a limit temporarily or permanently if you ask. U.S. Bank customers can view and change their limits with the Manage Debit Card Limits feature in the mobile app or online banking, or by calling the number on the back of the card. A bank's limit and your available balanceAvailable balanceThe money in a bank account you can use right now: the posted balance minus pending card purchases and any deposit the bank is still holding. See more are two separate checks, so a large purchase has to clear both.

Related Terms and Categories

• Available balance

  The money in a bank account you can use right now: the posted balance minus pending card purchases and any deposit the bank is still holding.

• Checking account

  A bank or credit union account for everyday money going in and out, used by debit card, checks, transfers and direct deposit.

• ATM fee

  A charge for using an ATM, which can come from the machine's owner, from your own bank for using a machine outside its network, or from both.

• Overdraft

  When a payment is bigger than your checking balance and the bank pays it anyway, leaving a negative balance you owe back, usually plus a fee.

• Safe-to-spend

  The money left for everyday spending before your next payday, after upcoming bills, subscriptions, card payments and planned savings are set aside.

• Pending transaction

  A card purchase or other payment the bank has approved but that hasn't settled yet; it lowers your available balance before it reaches your account balance.

Household money and budgeting