Transaction limits

When a transaction limit is defined, the following data can be specified:
  • A debit limit, a credit limit, or both.
  • The effective dates for the transaction limit.
  • The error code to use if the transaction limit is exceeded.
  • The batch message type for the transaction limit

Transaction limits are defined by either a message standard or message type. When a transmission is received, the message standard and message type are determined from the type of the transmission, such as an EDI 820 or CPA 924 transmission. A transaction limit might be defined for only EDI 820 batches (ICLs), for all ACH transmissions, or for all message types.

When Risk Management receives a message that indicates a batch (ICL) is ready to be processed, it searches all of the transaction limits defined for the participant. Only the transaction limits that match the attributes of the batch (ICL), such as the message standard and message type, and fall within the effective dates that are defined by the transaction limit are checked.

If one of the transaction limits is exceeded, the error code that is defined by that transaction limit is used to determine the action to be taken. If multiple transaction limits are exceeded, each failure is recorded and each error is assigned to the failing transaction. If a failing transaction limit does not have an error code that is defined, the transaction limit error code property for the limit that was exceeded is used. If no default error code property was defined, a system warning alert is generated.

The most severe error is used to determine the state of the transaction. For example, the following error codes are received for a transaction.
  • Reject transaction and not overridable.
  • Reject transaction but overridable.
In this case, the state of the transaction is set to rejected and not overridable.

The transaction limit check ensures that the credit or debit amount of each transaction does not exceed the amount limit that is defined by the transaction limit.