How do policy rules interact with spend limits?

Short answer

Controls and approval policies define what types of spending are allowed and under what conditions, while spend limits cap how much can be spent. Together, they create layered controls: category and merchant restrictions determine if a transaction is permitted, then spend limits enforce the dollar boundaries.

On Ramp, card controls and spend limits work together at the point of transaction to prevent non-compliant spending before it happens.

How they work together

Card controls and spend limits operate as complementary controls:

Card controls and approval policies evaluate the qualitative aspects of a transaction:

Which merchant categories are allowed
Who needs to approve spend requests or limit changes
Whether the merchant is permitted
Which expense types require review

Spend limits enforce the quantitative boundaries:

Maximum amount per transaction
Recurring spending limits with reset periods (daily, weekly, monthly, etc.)

When an employee attempts a purchase, both controls evaluate the transaction simultaneously. A $3,000 purchase might fall within the cardholder's monthly limit but still be blocked if the merchant category violates the card's restrictions.

How it works on Ramp

Ramp enforces card controls and spend limits at the card level before transactions are authorized:

Card configuration

Each card has a spend limit (per-transaction and a recurring limit with a reset period)
Card controls restrict merchant categories or block specific vendors
Both controls apply automatically at the point of purchase
Real-time enforcement
Transactions are declined if they exceed spend limits
Transactions are declined if they violate merchant category restrictions
Employees see clear decline reasons in the Ramp app

Approval workflows

Approval policies determine when spend requests or limit increase requests require manager approval
Expense review policies govern transaction review after purchase
High-value spend requests may require multiple approvals based on amount

Example:
A marketing manager has a $5,000 monthly limit restricted to advertising and software vendors. A $2,000 purchase at an approved vendor proceeds automatically. A $2,000 purchase at a restaurant is declined due to merchant restrictions, even though it's within the monthly limit. A $6,000 purchase at an approved vendor is declined for exceeding the monthly cap.

Common scenarios

Merchant restrictions with spend limits

A facilities card has a $3,000 monthly limit for hardware stores only
Purchases at approved merchants proceed up to the limit
Purchases at non-approved merchants are blocked regardless of amount

Receipt requirements and transaction review

Expense review policies require itemized receipts for meals over $75 after the transaction
Spend limits cap meal expenses at $150 per transaction
Category restrictions and limits enforce compliance at authorization, while receipt requirements are enforced during submission

Approval thresholds for spend requests

Spend requests under $1,000 may auto-approve if within available limits
Spend requests $1,000–$5,000 may require manager approval
Spend requests over $5,000 may require director approval

Best practices

Set spend limits that align with typical purchase patterns for each role
Use merchant category restrictions to prevent out-of-policy spending
Configure approval thresholds for spend requests and limit changes that match your risk tolerance
Review declined transactions to identify whether limits or card controls need adjustment
Monitor spending patterns to catch employees approaching limits before the reset period ends

Availability

Card controls and spend limits are available on all Ramp card types. Admins configure both settings when issuing cards or can adjust them anytime from the Cards page.