May 3, 2024

Spend Limit Improvements

On May 15 (Wednesday), Lithic will be making improvements to our card and account spend limit calculation logic to more accurately reflect how cardholders perceive spend velocity. Based on backtesting and monitoring, we expect this to affect a very small percentage of authorization decisioning.

Authorization Expirations

  • Current Behavior: Unsettled debit authorizations contribute toward spend limits (reducing available spend) for a fixed period.
  • Improved Behavior: Spend limits will respect the authorization’s validity window, which can be up to 30 days depending on the nature of the authorization. Once the validity window has passed, it will no longer contribute towards the spend limit. This logic aligns with the transaction lifecycle (more detail here).

Credit Authorizations

  • Current Behavior: Settled credit transactions contribute toward spend limits (increasing available spend) for all spend durations.
  • Improved Behavior:
    • Settled credit transactions will no longer contribute toward monthly or daily spend limits.
    • Settled credit transactions will continue to contribute toward lifetime card limits (increasing available spend). This is to maintain support for current usage patterns of lifetime card limits where the ability to spend against credited funds is expected by cardholders.
    • Unsettled credit authorizations will continue to not contribute toward spend limits of any duration.

For all card and account limits, we offer API endpoints to determine the current spend limit and amount available here and here.

Please reach out to [email protected] for any questions or concerns.