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Kingston had $1,250 in his checking account when his debit card was stolen. A thief made $625 in purchases with the card. How much could Kingston have saved by reporting the stolen card within 2 business days rather than 3 business days before reporting the theft?

A) $625
B) $0
C) $125
D) $500

User Olena
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1 Answer

5 votes

Final answer:

Kingston could have potentially saved $450 by reporting his stolen debit card within 2 business days rather than 3, but additional context on the bank's terms is necessary to choose from the provided options.

Step-by-step explanation:

The question asks about the amount of money Kingston could have saved if he reported his stolen debit card within 2 business days instead of 3. As there isn't provided information related to liability limits for unauthorized transactions on a debit card based on different time frames, we need to presume under typical circumstances. Generally, under US law, the maximum liability for unauthorized transactions if the debit card is reported stolen within 2 business days is $50. If reported after 2 business days, the liability could increase to $500. Without explicit details on the policies that apply in this scenario, we can assume that if Kingston reported the stolen card within 2 business days, he could have been liable for $50, whereas after 3 business days, it might increase to $500. Therefore, Kingston could have saved $450 by reporting the card within 2 business days.

However, based on the provided information, none of the answer choices correspond with the calculated potential savings of $450. This implies that to correctly answer the question, we might need additional context regarding the specific terms and conditions regarding debit card fraud liability for Kingston's banking institution.

User Aorlinn
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