> ## Documentation Index
> Fetch the complete documentation index at: https://docs.m1amdocs.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Spend Limit

Partner Ecosystem Management has spend limit functionality built in for Merchant-Managed transactions. This keeps track of how many Merchant-based transactions a user is performing in order to limit those transactions. This function prevents high charges from being accrued by a customer based on either fraudulent activity on their account, or through a high number of Merchant purchases.

Partner Ecosystem Management contains the following Reseller-specific daily and monthly global parameters to execute this functionality:

* A global parameter that limits the amount that a customer can purchase every month in Merchant services.
* A global parameter that limits the amount that a customer can purchase every day in Merchant services.

Every transaction coming in from the Merchant service will be validated to determine whether the transaction amount is more than the total sum of the daily amount, or more than the total sum of the monthly amount. If the validation isn't successful, the transaction won't succeed and an appropriate response will be sent to the Merchant service. If the validation passes, the transaction will be sent to Partner Ecosystem Management and the BSS system for processing.

**Note:** The monthly parameter is reset on the 1st of every month, and the daily parameter is reset at 00:00 hours.

## Spend Limit Use Cases

The following two use cases depict how the spend limit functionality works. The global parameters for these example use cases are set as follows:

* `PLM_BSP_MTHLY` = \$100.00
* `PLM_BSP_DAILY` =\$40.00

**Use Case 1**

In this use case, the customer is subscribed to two Merchant services. The first subscription is to a service called Amazing Movies for a monthly subscription of $20.00. The second subscription is to a service called Excellent Streaming Services for a monthly subscription of $15.00. Both Merchants are billing the customer on the 5th of every month.

On the 5th of August the following takes place:

* The Amazing Movies charge comes in for \$20.00, so the counter for the customer is set to the following:
  * Daily: \$20.00
  * Monthly: \$20.00
* The Excellent Streaming Services charge comes in for \$15.00 on the same day, so the updated counters are the following:
  * Daily: \$35.00
  * Monthly: \$35.00

If the customer makes a purchase on the 5th of August for another Merchant service at $10.00, the monthly allowance for the customer will be at $45.00 (which is valid). However, because the daily amount of $45.00 is higher than the global parameter of $40.00, this transaction will be declined.

**Use Case 2**

In this use case, the customer is subscribed to two Merchant services. The first subscription is to a service called Instant Streaming for a monthly subscription of $20.00. The second subscription is to a service called International Films for a monthly subscription of $15.00. Both Merchants are billing the customer on the 5th of every month.

On the 5th of August, the following takes place:

* The Instant Streaming charge comes in for \$20.00, so the counter for the customer is set to the following:
  * Daily: \$20.00
  * Monthly: \$20.00
* The International Films charge comes in for \$15.00 on the same day, so the updated counters are the following:
  * Daily: \$35.00
  * Monthly: \$35.00

If the customer makes a purchase on the 6th of August for a Merchant service called Unlimited Music at $10.00, the monthly allowance for the customer will be at $45.00, which is valid. The daily amount will then be reset to $0.00 prior to the purchase, and to $10.00 once the Unlimited Music charge comes in. Since the daily amount in this case is lower than the daily limit and the monthly amount is also below the monthly limit, the transaction will be accepted.

**Parent topic:**[Partner Ecosystem Management Features](r_Features)


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