Question

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?

Answer 1

Jerry is going to be at risk for paying the entire amount of $500 because he did not report the card stolen right away. However, in most cases, according to federal law you have 60 days to report a card lost or stolen. Credit card company’s are able to make their own decision on whether or not they wish to follow federal law in this type of situation.

Answer 2

Jerry is at the risk of losing $500.

Further Explanation:

Credit card:

A credit card is issued by banks and other financial institutes. It is a plastic card that has the specific details of the individual, lends him some specific money, and allows him to withdraw the funds from the account of the bank. The credit card can be used for the purchase of goods and services. The line of credit is the maximum amount that the credit card holder can withdraw.  

Lost credit card:

When the credit card is stolen or lost because of the mistake of the credit card holder, then the holder of the card is liable for any amount withdrawn from the account. The bank has not made any mistake from their side. The bank will not be liable for any fraud amount withdrawal.

When jerry lost his credit card, and someone else withdraws $500 from his account, then the bank is not liable for any refund because the credit card was used in the correct process, and the bank was right at their part. Therefore, the bank will be liable for any withdraw. Jerry is liable for the whole payment because he did not report the lost credit card.

Thus, Jerry is at the risk of losing $500.

Learn More:

1. Learn more about the money owed to the credit card company

brainly.com/question/8750254

2. Learn more about the credit card fee

brainly.com/question/1124275

3. Learn more about making an on-time minimum payment of credit card

brainly.com/question/6453895

Answer Details:

Grade: Senior School

Chapter: Money & Banking

Subject: Business Studies

Keywords: Jerry, lost, credit card, instead, reporting, right away, decides, continue, looking, believing, could find it, Some, time, passes, after, two weeks, logs, into, the account, activity, page, internet purchase, someone else, report, card is stolen, this, risk.