Is credit card fraud a felony?

Credit card fraud generally means using a credit or debit card, or its number, to get money, goods or services when you know it was not issued to you, you have no permission to use it, or it is expired, revoked or forged.^1,2,3,4,5

Texas covers using a card knowing it was not issued to the person and is not used with the cardholder's consent, or has expired or been revoked or cancelled. Illinois and North Carolina also cover forged cards, and Virginia covers expired or revoked cards and card numbers. Florida covers a card obtained or kept in violation of its credit card laws or one the person knows is forged.

Stealing a card, buying one from someone who is not the issuer, or using only the card number can also be crimes. Texas covers stealing a card or buying one from a non-issuer, and a separate Texas law covers using a card's number and expiration date without the account holder's consent, with intent to harm or defraud.^1,6,7

Illinois makes it an offense to receive a card from another person without the cardholder's consent, or knowing it was taken, with intent to use or sell it. Pennsylvania makes it an offense to possess an access device knowing it belongs to someone who has not authorized the possession.

Small-dollar card fraud is a misdemeanor in many states. Virginia makes it a Class 1 misdemeanor under $1,000 in six months, Ohio a first-degree misdemeanor under $1,000 in 90 days, Pennsylvania a misdemeanor under $500 and North Carolina a Class 2 misdemeanor at $500 or less in six months.^{3,4,5,7,8,9,10}

Pennsylvania grades it a first-degree misdemeanor from $50 up to $500 and a second-degree misdemeanor under $50. Florida makes it a first-degree misdemeanor when a card is used two or fewer times in six months or the value obtained is under $100.

Some states make card fraud a felony at any amount. Texas grades credit or debit card abuse as a state jail felony, and Illinois grades using a card without the cardholder's consent as a Class 4 felony when the items are worth $300 or less in six months. In New York, stealing a credit or debit card is a class E felony.^1,2,11,12,13

Virginia treats taking a card or card number, or buying or selling one, as card theft, which is grand larceny, punishable by 1 to 20 years in a state correctional facility or, at the discretion of the jury or court, up to 12 months in jail, a fine of up to $2,500, or both.

Higher amounts make card fraud a felony in other states. The lines are $1,000 or more in Virginia (six months) and Ohio (90 days), $500 or more in Pennsylvania, and over $500 in six months in North Carolina.^{2,3,4,5,7,8,9,10,14}

Virginia's is a Class 6 felony, Ohio's a fifth-degree felony up to $7,500, Pennsylvania's a third-degree felony and North Carolina's a Class I felony. Illinois raises its Class 4 felony to Class 3 above $300 in six months. Florida makes it a third-degree felony when a card is used more than twice in six months or $100 or more is obtained. California makes it grand theft when the value exceeds $950 in six months.

The number of cards or items and the victim's age can raise the grade. Texas makes card abuse a third-degree felony when the victim is an elderly individual, and grades its card-number offense from a state jail felony for fewer than 5 items to a first-degree felony for 50 or more.^1,6,7,8

Illinois makes it a Class 3 felony to receive cards issued to 3 or more other people within 12 months. Ohio sets a separate scale when the victim is an elderly person or disabled adult, starting at a fifth-degree felony and reaching a second-degree felony at $37,500 or more. Pennsylvania makes selling or transferring a device known to be counterfeit, altered, incomplete or belonging to another a third-degree felony, with each device a separate offense.

Texas

Texas: credit card or debit card abuse is a state jail felony at any amount, and a third-degree felony if the victim is an elderly individual. Using a card's number and expiration date without consent is graded by items, from a state jail felony to a first-degree felony.¹

Under the card-number law, fewer than 5 items is a state jail felony, 5 to fewer than 10 a third-degree felony, 10 to fewer than 50 a second-degree felony and 50 or more a first-degree felony.

Florida

Florida: fraudulent use of a credit card is a first-degree misdemeanor if it happens two or fewer times in six months or the value obtained is under $100. It is a third-degree felony if the card is used more than twice in six months or $100 or more is obtained.^5,10,15

Florida's identity law also lists credit and debit card numbers as personal identification information. Using one fraudulently without consent is a third-degree felony, and a second-degree felony at $5,000 or more.

California

California: using a card or card account information that was obtained or kept in violation of the law, or a card known to be forged, expired or revoked, with intent to defraud is theft, and grand theft if the value exceeds $950 in six months. Selling or transferring a card with intent to defraud, without the cardholder's consent, is grand theft.^{14,16,17,18,19}

Grand theft is punishable by up to one year in county jail or by a felony jail sentence under Penal Code section 1170(h), so it can be charged as a misdemeanor or a felony. Keeping a card's account information without consent, with intent to use it fraudulently, is also labeled grand theft. A separate law, Penal Code section 490.2, makes obtaining property by theft worth $950 or less petty theft, a misdemeanor, except for people with certain prior convictions, which may affect how these charges are graded.

New York

New York: stealing a credit or debit card is grand larceny in the fourth degree, a class E felony, at any value. Using a card number to get goods or credit in the cardholder's name can be identity theft, a class A misdemeanor, or a class E felony above $500.^11,20,21,22

Other larceny is petit larceny, a class A misdemeanor, unless a grand larceny category applies, such as property worth more than $1,000.

Illinois

Illinois: using a card without the cardholder's consent, or one that is forged, expired or revoked, is a Class 4 felony if the items are worth $300 or less in six months and a Class 3 felony above $300. Using only an account number with intent to defraud is a Class 4 felony up to $150 and a Class 3 felony above $150.^2,6,23

Receiving a card from another person without the cardholder's consent, with intent to use or sell it, is a Class 4 felony. Possessing a check guarantee card or cash machine key card without the account holder's authority is a Class A misdemeanor, and a Class 4 felony if it involves 3 or more cards belonging to different account holders within 12 months or property worth more than $150 within 90 days.

Pennsylvania

Pennsylvania: using an access device without authorization to get property or services is a third-degree felony at $500 or more, a first-degree misdemeanor at $50 up to $500, and a second-degree misdemeanor under $50.⁷

Amounts from a scheme or course of conduct can be added together. Possessing an access device knowing it belongs to another person who has not authorized it is a third-degree misdemeanor.

Ohio

Ohio: misuse of credit cards is a first-degree misdemeanor. If the property or services obtained in 90 days are worth $1,000 up to $7,500 it is a fifth-degree felony, $7,500 up to $150,000 a fourth-degree felony, and $150,000 or more a third-degree felony.^8,24

Ohio's identity fraud law, which lists credit card numbers, is a fifth-degree felony at the lowest level.

North Carolina

North Carolina: financial transaction card fraud is a Class 2 misdemeanor if the value obtained is $500 or less in six months, and a Class I felony if it is more.^3,9

The law covers using a card known to be forged, altered, expired or revoked, and getting money or goods by pretending to be the cardholder or by knowingly going over an account's balance, or its credit line by more than a set margin. Lying on a card application is a Class 2 misdemeanor.

18 U.S.C. § 1029

Federal access device fraud, 18 U.S.C. section 1029, covers using, producing or trafficking in counterfeit or unauthorized access devices, a term that includes cards and account numbers. Using unauthorized devices to get $1,000 or more in a year carries up to 10 years in prison, and making transactions with devices issued to others worth $1,000 or more in a year carries up to 15 years.²⁵

The law applies if the offense affects interstate or foreign commerce. Possessing 15 or more counterfeit or unauthorized devices carries up to 10 years, the maximum is 20 years after a prior conviction under the section, and an attempt carries the same penalties as the completed offense.

18 U.S.C. § 1028A

Federal law adds a mandatory 2 years in prison when a person knowingly uses another person's means of identification, a term that includes a card or account number, during and in relation to certain federal felonies. The court cannot place the person on probation for it, and the 2 years cannot run at the same time as the sentence for the underlying felony.^26,27

This is aggravated identity theft under 18 U.S.C. section 1028A. The listed felonies include theft of public money, most felonies in the federal chapter on fraud and false statements, and mail, bank and wire fraud.

Under 12 U.S.C. § 1829, a person convicted of a criminal offense involving dishonesty, breach of trust or money laundering may not work at, own or control, or otherwise take part in the affairs of an FDIC-insured bank without the FDIC's prior written consent. The same applies to a person who agreed to a pretrial diversion or similar program for such an offense.^28,29

FDIC rules count an offense as one involving dishonesty if the person cheats or defrauds, or wrongfully takes property, or if the law defines it as dishonest or makes dishonesty an element. The FDIC decides from the offense's statutory elements or court rulings on them, so not every conviction for this crime is covered. The rules also leave out a misdemeanor committed more than one year before the person files a consent application, not counting time spent incarcerated.

The bank ban in 12 U.S.C. § 1829 does not apply once 7 years have passed since the offense, or 5 years since release if the person was incarcerated for it. For an offense committed at age 21 or younger, it stops applying once more than 30 months have passed since sentencing.^28,29,30,31

It also does not apply to a conviction covered by an expungement, sealing or dismissal order meant to destroy or seal it from the person's record, or to minor offenses that meet the FDIC's de minimis rules. The FDIC's small-dollar simple theft exemption expressly leaves out identity theft and fraud. The time limits do not apply to certain listed federal offenses, including bank fraud (18 U.S.C. 1344). For those, the FDIC may not consent for 10 years after the conviction becomes final, though the sentencing court may grant an exception on the FDIC's motion.