What does daily limit mean?

A daily limit in finance refers to the maximum amount of money that an individual or entity is allowed to spend, withdraw, or transfer within a single day. This limit is set by financial institutions and can apply to various types of transactions, such as ATM withdrawals, point-of-sale purchases, online transfers, and mobile banking transactions. Daily limits are put in place to protect against fraud, unauthorized access, and excessive spending. By setting a maximum amount that can be spent or withdrawn in a single day, financial institutions can help prevent and detect suspicious activity, as well as limit potential losses in the event of a security breach. Customers can typically request to have their daily limits adjusted, either temporarily or permanently, by contacting their bank or financial institution. However, any changes to daily limits may be subject to approval and verification processes, depending on the institution's policies and procedures. It is important for individuals to be aware of their daily limits and to monitor their account activity regularly to ensure that they are not exceeding these limits or experiencing any unauthorized transactions. Failure to adhere to daily limits can result in declined transactions, fees, and potential account suspension or closure.