There are multiple types of limits the client can opt for. Each limit can be used independently or work in combination with the rest to meet the client's needs. Limits are either on a client level or on an employee level. Let's review each limit separately:
The client-level limits are to frame the overall scheme spending.
Company limit is optional and is designed to help clients plan and control more easily their cash outflows and scheme's total spending per invoicing period. The limit restricts the total spending of all employees across all SmartPay™ products within the invoicing period.
The moment the limit is reached, Reward Gateway will stop dispatching orders until the new invoicing period starts or the company limit is extended. Furthermore, the limit can be set for each separate invoicing unit or billing address individually, in case the client has multiple.
The employee-level limits regulate the spend per employee. This is to enable our clients to plan, control and spread spend properly among their employees.
SmartPay™ limit caps the amount an employee can spend across all SmartPay™ products (e.g. SmartTech™ and RG Cycle To Work). So for example, if an employee has a SmartPay™ limit of £1500 and spends £600 on SmartTech™, they will have £900 left to spend on RG Cycle to Work.
Please note: Having a SmartPay™ limit is essential for pre-approval for SmartTech™. If the client wants automated approval, they'll have to either provide a default SmartPay™ limit or an individual one for each employee.
Default SmartPay™ limit
A client may choose to have a default SmartPay™ limit that applies to all employees. E.g. the default SmartPay™ limit is £1000, everyone will be able to spend no more than £1000 across all SmartPay™ products. The default SmartPay™ limit is configurable via SmartPay™ settings at any time.
Individual SmartPay™ limit
Individual SmartPay™ limit is for clients who want to have different SmartPay™ limits for individuals, groups of people or even whole departments.
The individual SmartPay™ limit will override a default SmartPay™ limit (if any). The individual SmartPay™ limit is provided via Members Upload.
Product limits (e.g. SmartTech™ limit) restrict the amount an employee can spend on a given salary sacrifice or deduction product (e.g. SmartTech™).
Default product limit
Once set, the default product limit will apply for each employee making an order through this product. The default product limit is configurable via the product setup page in Reward Manager.
Individual product limit
Individual product limit (e.g. Individual SmartTech™ limit) is optional and is set via the Members Upload. It denotes the maximum amount the employee can spend within the specified product (e.g. SmartTech™). The individual spending limit overrides the default product limit (if any).
How do all these limits fit together?
There is great flexibility available on SmartPay™ and the products that can integrate within this. We've made it easy to understand with just two rules to follow:
An individual limit always overrides the default limit
Both with SmartPay™ and product limits (e.g. a SmartTech™ limit) the same rule applies - the individual limit rules over the default limit. Let's say the client has set a default SmartPay™ limit of £1000 but Molly has an individual SmartPay™ limit of £2000. Molly will be able to spend £2000 whereas everyone else will have £1000 available to spend.
Between the SmartPay™ limit and the product limit, the lower amount is the overriding one
If Molly has £1500 for a SmartTech™ limit and £2000 for SmartPay™ limit, she'll be able to spend up to £1500 on SmartTech™.
Alternatively, if Molly has spent £1000 on Cycle to Work, she'll have only £1000 left of her SmartPay™ balance and although her SmartTech™ limit is higher (£1500), Molly will be able to spend up to £1000 on SmartTech™.
Still not clear?
Follow the example scenario below