Description: A spending limit is the maximum amount a customer can spend on a purchase. This concept is fundamental in e-commerce, as it allows merchants to set restrictions that can help manage financial risk and encourage responsible buying behavior among consumers. Spending limits can be applied in various ways, such as in special promotions, loyalty programs, or even in user account settings. By establishing a spending limit, merchants can protect themselves against fraud and excessive purchases, ensuring that customers do not exceed their payment capacity. Additionally, this mechanism can be used to encourage customers to make smaller, more frequent purchases rather than a single large purchase. In the context of e-commerce platforms, spending limits can be configured by store owners to fit their sales strategies and customer needs, thus creating a safer and more controlled shopping environment.
