Credit card fraud is a felony when the amount stolen exceeds a threshold set by your state, usually between $500 and $1,000, or when the fraud involves organized schemes or identity theft. Below that threshold, it is typically charged as a misdemeanor. The distinction matters because felony convictions carry prison time measured in years, while misdemeanors usually mean jail time under one year, fines, or probation.
Key Takeaways
- Most states treat credit card fraud under $500 to $1,000 as a misdemeanor; amounts above that threshold become felonies, though the exact dollar amount varies by state.
- Fraud involving multiple cards, organized schemes, or identity theft is charged as a felony regardless of the dollar amount in many jurisdictions.
- If you are the victim of credit card fraud, reporting it to your card issuer and the Federal Trade Commission does not require you to press charges — the bank and law enforcement decide whether to prosecute.
- Felony convictions for fraud can affect employment, housing, and credit for years after sentencing, even if you serve no prison time.
- If you are accused of fraud, the difference between misdemeanor and felony charges can be negotiated during plea discussions with a prosecutor.
How States Define the Felony Threshold
The dollar amount that separates misdemeanor from felony fraud varies significantly by state. California treats fraud under $950 as a misdemeanor; Texas uses $2,500; New York uses $1,000. Some states have no fixed threshold and instead let prosecutors decide based on the defendant's criminal history and the circumstances of the fraud.
The threshold also depends on what was stolen. Using someone else's card without permission is treated differently than creating a fake card or opening a new account in someone's name. The latter two are often charged as felonies even for small amounts because they involve identity theft, which most states treat as a separate, more serious crime.
If you are facing charges, the specific state law matters enormously. A prosecutor in one state might charge $800 in fraud as a misdemeanor; in another state, the same amount could be a felony. This is why the first step after arrest is to speak with a criminal defense attorney who knows your state's law, not to assume the charge based on the dollar amount alone.
Felony Charges for Organized or Repeated Fraud
Even small amounts of fraud become felonies when they are part of a pattern. If you used multiple stolen cards over time, or if you worked with others to commit fraud, prosecutors can charge you with felony fraud regardless of the total amount from any single card. This is called organized fraud or conspiracy, and it carries harsher penalties than a single transaction.
Repeated fraud — meaning you have prior fraud convictions — also triggers felony charges in most states, even if the current offense would normally be a misdemeanor. A second or third fraud charge is treated as a felony because the defendant has shown a pattern of dishonesty.
The same logic applies to fraud that crosses state lines. If you used a stolen card in multiple states, federal law may explore, and federal fraud charges are almost always felonies. Federal prosecutors have broader jurisdiction and typically pursue larger schemes, but they can also pursue smaller cases if they involve interstate commerce.
What Happens When You Are a Victim of Credit Card Fraud
If someone used your card without permission, you are not responsible for the charges. Federal law (the Fair Credit Billing Act) limits your liability to $50 per card, and most card issuers waive even that amount. Your job is to report the fraud to your card issuer as soon as you notice it — call the number on the back of your card or log into your online account.
The card issuer will freeze the account, issue you a new card, and investigate the charges. They will also report the fraud to the credit bureaus so it does not damage your credit score. You do not have to file a police report for the card issuer to refund the money, though you may want to for your own records.
If you want law enforcement involved, you can file a report with your local police department or the Federal Trade Commission at IdentityTheft.gov. The FTC does not investigate individual cases but uses the reports to identify patterns and alert law enforcement. Whether the case becomes a criminal prosecution depends on the police and prosecutors, not on you. You cannot "press charges" in the way TV shows suggest — only the government can decide to prosecute.
The Difference Between Misdemeanor and Felony Consequences
A misdemeanor conviction for fraud typically results in up to one year in jail, fines between $500 and $5,000, and probation. A felony conviction can mean two to ten years in prison depending on the state and the amount involved, plus larger fines and a longer probation period.
The long-term consequences extend far beyond the sentence itself. A felony conviction appears on background checks for employment, housing, and professional licensing. Many employers will not hire someone with a felony record, and landlords can legally refuse to rent to you. Some states also restrict voting rights for people with felony convictions, though this varies by state and by whether you have completed your sentence.
A misdemeanor is less visible on background checks — some employers and landlords may not see it, depending on how thorough their screening is. But both misdemeanor and felony fraud convictions will appear on your credit report and can affect your ability to borrow money in the future.
How Fraud Charges Are Negotiated
If you are accused of fraud, you will likely have the chance to negotiate with the prosecutor before trial. This is called a plea bargain. The prosecutor might agree to reduce a felony charge to a misdemeanor in exchange for you pleading guilty, or they might agree to a lower sentence in exchange for a guilty plea.
The strength of the evidence against you, your criminal history, and the amount of money involved all affect what the prosecutor is willing to negotiate. If the evidence is weak or the amount is small, you have more leverage. If you have prior convictions or the amount is large, the prosecutor has less incentive to reduce the charge.
This is why having a criminal defense attorney is critical. They know the local prosecutors, understand what charges typically result in what sentences, and can negotiate on your behalf. Public defenders are available if you cannot afford a private attorney, though they are often overworked and may have less time for your case.
Federal Fraud Charges and Wire Fraud
If credit card fraud involves the internet, phone, or mail, it can be charged as wire fraud under federal law. Wire fraud is always a felony and carries sentences up to 20 years in prison. This applies even to small amounts if the method used crosses state lines or involves electronic communication.
For example, if you used a stolen card to make an online purchase from a retailer in another state, or if you received the card information via email, federal prosecutors could charge you with wire fraud. The threshold for federal prosecution is lower than for state prosecution, and the penalties are much higher.
Federal cases also move differently than state cases. They involve FBI investigation, federal prosecutors, and federal courts. The process is slower but also more formal and procedurally strict. If you are facing federal charges, an attorney with federal court experience is essential.
Frequently Asked Questions
If someone stole my credit card number online, is that a felony?
It depends on the amount charged and whether the theft involved identity theft or multiple cards. A single fraudulent charge under your state's threshold is usually a misdemeanor; repeated charges or opening new accounts in your name is typically a felony. Report it to your card issuer and the FTC, and they will handle the investigation.
Can I go to prison for credit card fraud if I pay the money back?
Paying restitution can reduce your sentence or influence a judge's decision, but it does not erase the crime or may provide you will avoid prison. Whether you go to prison depends on the amount, your criminal history, and the prosecutor's recommendation. A defense attorney can argue that restitution shows remorse and should result in probation instead of jail time.
What is the difference between credit card fraud and identity theft?
Credit card fraud is using someone else's card without permission. Identity theft is using someone's personal information (name, Social Security number, date of birth) to open new accounts or take out loans in their name. Identity theft is usually charged as a separate, more serious felony even if the dollar amount is small.
If I dispute a charge on my credit card, can I be charged with fraud?
No. Disputing a charge you did not make is your legal right under the Fair Credit Billing Act. Fraud occurs when you knowingly use someone else's card or information without permission. Disputing a charge you actually made is fraud, but disputing a charge you did not make is not.
How long does a credit card fraud conviction stay on my record?
A felony conviction stays on your criminal record permanently in most states, though some states allow you to petition for expungement after a certain period (usually five to ten years). A misdemeanor may be expungeable sooner. Check your state's laws or ask a criminal defense attorney about your options.