Question

What's the maximum amount Sam will have to pay for this fraudulent transaction?

1) $2,799
2) $0
3) The total amount of the credit card statement
4) Cannot be determined

Answer 1

The likely answer is that the maximum amount Sam would have to pay for a fraudulent transaction on his credit card is $0, due to most major credit card issuers offering a zero-liability policy for unauthorized transactions reported promptly.

Step-by-step explanation:

The question appears to be related to the liability policies of credit cards for fraudulent transactions. Under US federal law, specifically the Fair Credit Billing Act (FCBA), the maximum amount that a cardholder can be held liable for unauthorized use of a credit card is $50. However, many credit card issuers have a zero-liability policy, meaning that the cardholder would not be responsible for any fraudulent charges made on their accounts if they report them in a timely manner.

Therefore, the maximum amount Sam will have to pay for this fraudulent transaction, assuming his credit card issuer follows the standard liability protections, would likely be $0, as most major credit card companies don't hold the cardholder liable for unauthorized transactions that are reported promptly.