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How card spend limits work?
How card spend limits work?
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Written by Jicelle Kameyama
Updated over a week ago

For every card issued, you can set tailored spending limits using Alaan. It's important to note that when you set a limit on a card, it will not impact the company's balance. The company balance only decreases when the card is used to make a payment. Here are some guidelines on when to use each spending limit:

  • Daily: As the name suggests, the limit is reset every day, and any unused balance does not carry over to the next day. This limit may be appropriate if employees need to make small, routine purchases on a daily basis, such as office supplies, coffee runs, or lunch expenses.

  • Monthly: In this case, the limit is reset on the 1st of every month, and any unused balance from one month does not carry over to the next month. This limit may be more suitable if employees need to make larger purchases or pay for regular expenses that occur throughout the month, such as utility bills or software subscriptions.

  • Approval-based: Use this limit if you are issuing the card to someone who has a defined exposure limit in your company (e.g., before Alaan, you may have defined petty cash limits per employee). The limit is not reset based on a fixed time period but is instead reset when the expenses made on the card have been reviewed and approved by designated stakeholders. Bear in mind that delays in approval may result in the cardholder not being able to use the card for legitimate expenses.

  • All-time: This limit is ideal for one-time expenses like projects, events, or equipment purchases, ensuring that expenses do not exceed a set budget. Limits are never reset unless you manually change them.

A card user cannot change the spending limit on the card. Contact your company admin to change the spending limit.

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