Over Limit Fee

An over limit fee is a fee that is charged when a merchant processes more than their allowable processing volume. Over limit fees are usually charged as a percentage of gross sales over the allowable limit

For Example:
If a merchant had originally declared $5,000 a month as their processing volume, and processed $8,000 in their first month, they may be charged an over limit fee on the $3,000 excess volume. If the over limit fee is 5%, the merchant would have to pay $150 for breaking their processing limit, in addition to their normal discount fees and transaction charges.

Processing in excess of declared processing volumes is viewed as a serious issue by acquiring banks and merchant service providers.