Jerry lost his credit card and instead of reporting it right away, he decides to continue looking for it believing he could find it. Some time passes and after two weeks, he logs into the account activity page of his credit card and sees a recent $500 internet purchase that was made by someone else. At that moment, he calls to report his card stolen. How much of this $500 charge is Jerry at risk for having to pay?
a.$300
b. 0
c. $500
d. $50
e. $250
I pick B. Is that correct?
Yes.
500
Yes, that is correct. Jerry is not at risk for having to pay any part of the $500 charge because he reported his card stolen immediately after discovering the unauthorized transaction. It is the responsibility of the credit card company to investigate and resolve the fraudulent charge.
Yes, your choice of option b. 0 is correct. Jerry is not at risk for having to pay any amount of the $500 charge. Let me explain why:
When Jerry reported his card stolen immediately upon discovering the unauthorized transaction, the credit card company or issuer will typically have a zero-liability policy for such situations. This means that if the cardholder reports the unauthorized transaction promptly, they are not responsible for any charges made by someone else.
In this scenario, Jerry reported the stolen card as soon as he saw the unauthorized $500 internet purchase on his account activity page. Therefore, he will not be held liable for any portion of that $500 charge.
It is always important to report a lost or stolen credit card as soon as possible to protect yourself from any fraudulent transactions.