When issuing corporate cards through Float, setting the right spending limits is crucial. Limits should protect your budget and ensure control, while also giving employees the flexibility they need to do their jobs.
Float gives administrators the tools to find the right balance between control and freedom. This article will walk you through key considerations, questions to ask, and important practices to avoid declined transactions and keep spending on track.
1. Understand the Card’s Purpose
Start by clarifying what the card will be used for. Ask:
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Is it for recurring expenses like subscriptions or team lunches?
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Is it for travel or one-off purchases?
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Will it support specific projects or roles?
This helps ensure the limit reflects the actual needs of the cardholder.
2. Assess the Cardholder’s Spending Patterns
Next, consider:
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The cardholder’s typical monthly spend
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Any peaks due to seasonal or project-based needs
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How this compares to similar roles or teams
For new roles or functions, use benchmarks from similar employees or departments to set a starting point.
3. Use a Tiered Approach
A tiered approach helps balance trust and control:
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Start with lower limits for new cardholders
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Increase limits based on trust, actual usage, and necessity
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Adjust limits as the cardholder’s responsibilities grow
This ensures spending stays within reason while supporting employees in their work.
4. Ask Key Questions Before Setting Limits
Use these 5 questions to guide your decisions:
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What’s the primary use case for this card?
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What’s the expected frequency and size of purchases?
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Are there seasonal or project-based spending spikes?
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How does this spend compare to similar roles?
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What internal approvals are in place for higher-value purchases?
Answering these helps set practical, protective limits that align with your business needs.
5. Understand Temporary and Recurring Limits
Float offers:
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Temporary limits: Ideal for time-bound or one-off purchases. They expire automatically on a set date.
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Recurring limits: These reset on a regular schedule, like monthly or annually.
Admins can manage both directly in the Float dashboard. If cardholders need higher limits or new cards, they can submit a Spend Request. Approvers then review and approve based on your company’s policy. Learn more here: Spend Requests for New Cards or Limits.
Important Notes:
- A Float card must have an active spending limit in order to make purchases.
- No limit does not mean “unlimited”, rather it means the card cannot be used until a limit is set. Make sure to confirm limits are in place for every card that needs to be active.
- It is not possible for card to have unlimited access to a business's available balance; each card must be configured with its own limit(s).
6. Factor in Authorizations and Holds
Important Note: Merchants often place temporary holds (like hotel or car rental pre-bookings) that count against the card’s available spending limit, even before the actual transaction clears.
These holds can unexpectedly reduce what’s available to spend and lead to declined transactions. To avoid this:
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Review authorization history regularly
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Adjust limits to account for holds—especially for employees who travel frequently or have hospitality-related expenses
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Be proactive about increasing limits when needed
7. Keep Your Spending Flexible but Controlled
Setting spending limits isn’t a one-time job—it’s an ongoing part of managing your team’s financial freedom and staying in control.
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Start with realistic limits based on role and expected spend
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Use Float’s tools—like Spend Requests, Temporary and Recurring limits—to keep things flexible
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Stay on top of authorization holds and temporary spikes
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Always ensure that every card has an active limit in place
When you take these best practices into account, you’ll avoid unnecessary declines and create a better experience for your employees and your business.
More Resources
For more on setting and editing limits, see:
If you have questions, reach out to us at support@floatfinancial.com. We’re here to help!