Electronic Funds Transfers and Other Payment Systems - Module 4 of 6
Nolan initiates an electronic funds transfer from his bank, which is Boston Bank, to Sally’s bank, which is Sunset Bank in Los Angeles, for her to use when the funds are received. Which of the following is true?
Which of the following is TRUE about a wire transfer?
In a credit card agreement called a “merchant’s agreement” between a merchant and the merchant’s bank, the bank acting as the merchant’s bank is called the
Which of the following primarily governs credit card transactions?
Which of the following is TRUE about regulations governing issuers of credit cards?
Assume that Sunrise Bank in Fort Lauderdale, Florida issues a VISA credit card to Martha, a wealthy retiree. Martha gives her neighbor, Vivian, the personal identification number to access the account along with the card to make purchases on Martha’s behalf, because Martha’s advanced age limits her mobility. For several months Vivian makes purchases and pays Martha’s bills by using checks from a joint checking account she set up with Martha. When Martha does not hear from Vivian for several weeks she discovers that Vivian had paid her last month’s rent and moved out of her apartment. Martha then examines her bank statement and notices that her joint account had a zero balance and her credit card reflects several purchases Vivian evidently made without Martha’s knowledge or approval. Martha might be responsible for the charges Vivian occurred on her credit card if
Assume that Daniel purchases a collectible ship model on an internet website called Maritime Miniatures (Maritime), which is a business located in Massachusetts, and he pays for the model by credit card. Six weeks later he contacts his credit card company and requests that it not make any payment after receiving no responses from Maritime after sending several e-mails. Daniel conducted a web search that revealed several bad product reviews and rumors of Maritime’s insolvency. Which of the following statement, if TRUE would support the validity Daniel’s request under federal law?
Which of the following primarily governs debit card transactions?
Assume that Lone Star Bank in Dallas, Texas issues a VISA card to Lynn, a depositor. Lynn then visits her mother who lives in St. Paul, Minnesota for a holiday weekend and where, unknown to Lynn, a housekeeper at the hotel where Lynn was staying steals her Lone Star VISA card. Lynn had the card Friday and it went missing on Saturday. Monday was a federal holiday and the bank was closed. Lynn reports the stolen card to her bank Wednesday after the housekeeper had charged $90 on the card. On Thursday the housekeeper charges another $75 on the card before the bank could invalidate the card. How much is Lynn responsible for in purchases under federal law?
Which of the following is TRUE concerning damages that are potentially available in actions for a bank’s liability on debit card transactions?