Which Credit Cards Have Authorized User Spending Limits?

Credit cards are a fundamental financial tool. Primary cardholders often add authorized users, such as family members or trusted associates, to their accounts. This allows them to make purchases, helping manage household expenses or provide credit experience.

Understanding Authorized Users and Spending Limits

An authorized user is an individual granted permission by the primary cardholder to use their credit card account. This user typically receives a physical card with their name on it, enabling them to make purchases. While authorized users can spend on the account, they hold no legal responsibility for the debt incurred; the primary cardholder remains solely accountable for all charges and timely payments. This arrangement differs from joint accounts, where both parties share legal liability for the balance.

A spending limit for an authorized user is a specific cap on the amount they can charge. This feature allows the primary cardholder to control expenditures. For example, a parent might set a limit for a child to teach responsible spending, or a business owner could restrict employee spending. This helps manage the overall credit line and mitigate overspending.

Credit Cards with Spending Limit Features

While many credit card issuers allow primary cardholders to add authorized users, the ability to set distinct spending limits varies. American Express offers this feature across all its consumer credit cards, allowing limits as low as $200. This functionality is more common on business credit cards, where employers require spending controls for employees.

Several major credit card issuers provide this control on their business card products, including:
American Express
Bank of America
Capital One
Chase
Discover
U.S. Bank
Wells Fargo
For consumer cards, beyond American Express, certain issuers offer this feature on select products. Citi, for example, provides this benefit on one of its consumer cards, and Barclays allows per-transaction spending limits. Primary cardholders should confirm feature availability with their provider, as policies differ by card product.

Setting and Managing Authorized User Spending Limits

Primary cardholders can set and manage spending limits for authorized users through online banking portals, mobile applications, or by contacting customer service. Limits can be adjusted as needed. Once set, the system declines any transaction attempted by the authorized user that exceeds their assigned threshold.

Notifications are often available to alert the primary cardholder when an authorized user approaches or reaches their limit, or makes a purchase. These alerts can be customized, such as for purchases over a certain amount. Some credit card statements may itemize authorized user purchases, while others might not distinguish them from the primary cardholder’s transactions. Confirming this with the issuer is important for monitoring. Regular review of account activity and open communication with authorized users help ensure spending remains within boundaries.