Limits Overview | Braid Technologies, Inc. Help Center

Limits are critical controls that help financial institutions manage risk by setting thresholds on account activities. These limits ensure transactions stay within expected patterns, reducing the risk of fraud, misuse, or non-compliance. Velocity limits can be customized across different levels, including product types, accounts, and counterparties, to offer precise control over transaction behaviors.

This guide explains how to set, manage, and prioritize these limits, along with how Braid handles transactions that exceed them. By using these controls effectively, financial institutions can enhance operational security, maintain compliance, and protect their integrity.

Types of Limits

Level	Description	Example
Product + Transaction Type Level	Sets limits based on a specific product and transaction type.	For Product ID = 3453 and Transaction Type = ACH_originator_credit, the 30-day limit is $5,000.
Account + Transaction Type Level	Sets limits for individual accounts based on transaction types, overriding product-level limits if configured.	For Account ID = 45532, a higher limit of $6,000 for 30 days allows more flexibility.
Account + Transaction + Counterparty	Adds a counterparty dimension, setting limits for transactions with specific counterparties.	The account can only send $1,000 per day to any single counterparty.

Hierarchy of Limits

Account-level limits override product-level limits.
If no account-level limit is set, the product-level limit applies.

Transaction Handling

Processing Limits

If a transaction exceeds any set limit, it is automatically rejected.
Rejected transactions are logged in a reject database, marked with a status of “Rejected.”

Compliance and Review

Compliance officers review the rejection logs.
They may need to file Suspicious Activity Reports (SARs) depending on the rejected transaction.

Soft Rejections

Transactions that exceed set limits but do not warrant an outright rejection may be flagged as “Pending” for further review.
Transactions in “Pending” status appear in the Braid Dashboard, where users can approve or reject them.

Limit Breach Alerts and Case Management

If a transaction breaches a limit and is flagged for review (soft rejection), Braid will trigger an alert.
Alerts are automatically generated and visible in the Alerts Dashboard, which allows users to quickly identify and address flagged transactions.
Each alert can be managed as a case, following the processes outlined in the Alerts and Case Management Guide.
- Case Approval: Users can review flagged transactions and either approve them (allowing them to proceed) or reject them (finalizing the rejection).
- Case Handling: Users can add notes, assign cases to compliance officers, and track progress until resolution.
This process ensures that flagged transactions receive proper oversight and maintain compliance with regulatory requirements.

Configurable Limits

Max Amount Per Transaction
Max Amount Per Time Frame: Daily, every 7 days, every 30 days.
Max Number of Transactions Per Time Frame: Daily, every 7 days, every 30 days.

Example Scenario

Scenario	Description
Product-level limit	For Product ID = 3453 and Transaction Type = ACH_originator_credit, the 30-day limit is $5,000.
Transaction on 1/1: $3,000 (successful)**	The transaction is approved as it is within the 30-day limit.
Transaction on 1/29: $2,000 (fails)**	This transaction fails because it exceeds the 30-day product-level limit of $5,000.
Account-level limit for Account ID = 45532	The limit is set at $6,000 for the same 30-day period.
Transaction on 1/29: $2,000 (succeeds)**	This transaction is successful due to the account-level override, allowing the account to exceed the product-level limit while staying within the account-level limit.
Transaction flagged for soft decline	If the transaction breaches an account-level counterparty limit of $1,000 but doesn’t exceed other thresholds, it is flagged. An alert is generated, prompting review and approval or rejection based on the nature of the transaction.