Credit card fraud is a felony when the amount stolen or attempted exceeds a threshold set by state law, usually between $500 and $1,000, or when the fraud involves organized schemes or identity theft
Whether credit card fraud is charged as a felony depends on three things: how much money was involved, whether it was a single incident or a pattern, and which state prosecuted it. A single fraudulent charge of $200 is typically a misdemeanor. A coordinated scheme using stolen cards across multiple states, or repeated fraud totaling thousands of dollars, is almost always a felony. The line between the two is not the act itself—it is the dollar amount and the intent behind it.
The federal government also prosecutes credit card fraud under 18 U.S.C. § 1029, which makes it a felony regardless of the amount if the fraud crosses state lines, involves a financial institution, or uses an access device (like a card number) obtained through deception. State charges and federal charges can stack, meaning a person convicted of credit card fraud might face both.
Key Takeaways
- Most states treat credit card fraud under $500 to $1,000 as a misdemeanor, with penalties of up to one year in jail and fines under $1,000.
- Fraud exceeding the state threshold or involving multiple victims, organized schemes, or identity theft is charged as a felony, carrying prison time of one to ten years depending on the state.
- Federal prosecution applies when fraud crosses state lines, involves a bank or payment processor, or uses stolen card information obtained through deception, and is always a felony.
- A felony conviction for credit card fraud creates a permanent criminal record that affects employment, housing, and future credit decisions.
How States Define the Felony Threshold
Each state sets its own dollar amount that separates misdemeanor from felony fraud. California treats fraud under $950 as a misdemeanor; New York uses $1,000; Texas uses $750. If you are charged in a state where you do not live, the state where the fraud occurred determines the charge level, not your home state.
The threshold applies to the total amount in a single transaction or a series of related transactions. If someone uses a stolen card for five purchases totaling $600, most states add those together and charge it as a felony if the combined total crosses the threshold. However, if the same person makes isolated fraudulent charges on different cards over months with no connection between them, some prosecutors may charge each one separately—which could keep individual charges below the felony line.
Organized retail theft rings that use stolen cards in a coordinated pattern often face felony charges even if individual transactions are small, because the pattern itself demonstrates intent and sophistication. A single person using one stolen card once is treated differently from a group using dozens of cards across multiple stores.
When Federal Law Takes Over
Federal prosecutors step in when credit card fraud involves a bank, payment processor, or crosses state lines. Using a stolen Visa card online to buy something shipped to another state is federal fraud. Hacking a bank's customer database is federal fraud. Selling stolen card numbers on the dark web is federal fraud. These are all felonies under federal law, with sentences ranging from two to fifteen years in prison depending on the amount and the method.
Federal charges do not require a high dollar amount. A single fraudulent charge of $50 can be prosecuted federally if it involves a bank or crosses state lines. The focus is on the mechanism—did the fraud touch the banking system or interstate commerce—not just the money.
A person can face both state and federal charges for the same conduct. Someone who uses a stolen card to make purchases in two states might be charged by the state where they live, the state where the card was stolen, the state where the purchase was made, and the federal government. Sentences can run consecutively, meaning the total prison time adds up.
Misdemeanor Fraud: Smaller Amounts and Single Incidents
Misdemeanor credit card fraud typically involves a single fraudulent charge or a small total amount under the state threshold. Penalties vary by state but usually include up to one year in county jail, fines between $500 and $2,000, restitution to the victim, and a misdemeanor record that shows up on background checks for employment and housing.
A misdemeanor conviction is less damaging to your future than a felony, but it is still a criminal record. Employers in finance, healthcare, and government positions often reject applicants with any fraud conviction, misdemeanor or felony. Landlords may refuse to rent to you. Some professional licenses (nursing, teaching, accounting) can be denied or revoked based on a misdemeanor fraud conviction.
Misdemeanor charges are sometimes reduced or dismissed through plea agreements or diversion programs, especially for first-time offenders. A person charged with misdemeanor fraud might be offered the chance to complete restitution, attend a financial responsibility course, and have the charge dismissed after a set period. Felony charges rarely offer this path.
Felony Fraud: Larger Amounts, Patterns, and Identity Theft
Felony credit card fraud is charged when the amount exceeds the state threshold, when fraud involves identity theft, when multiple victims are targeted, or when the fraud is part of an organized scheme. Sentences range from one to ten years in prison depending on the state and the specifics of the case. Some states impose mandatory minimum sentences for fraud over a certain amount.
Identity theft—using someone else's personal information to open a new credit card or account in their name—is almost always charged as a felony, even if the amount is small. The reasoning is that identity theft causes ongoing harm beyond the when ready fraud; the victim's credit is damaged, and recovery takes months or years. Prosecutors treat it as more serious than a single fraudulent charge on an existing card.
A felony conviction creates a permanent criminal record that affects housing, employment, professional licenses, and voting rights in some states. Many employers run background checks and automatically reject applicants with felony convictions. Some states restrict felons from certain jobs or professions. A felony record also makes it harder to rent an apartment, obtain a security clearance, or get a loan.
What Happens After a Fraud Charge
After arrest, the person is booked, and bail or release conditions are set. For misdemeanor fraud, bail is often low or the person is released on their own recognizance. For felony fraud, bail is higher, and the person may be held until trial unless they can post bond or hire a bail bondsman.
The case then moves through the court system. In felony cases, there is usually a preliminary hearing where the prosecutor shows probable cause, then a grand jury indictment or an information filing. The defendant is arraigned, enters a plea, and the case either goes to trial or is resolved through a plea agreement. Most fraud cases (misdemeanor and felony) are resolved through plea deals rather than trial.
If convicted, sentencing depends on the charge level, the amount of money involved, the defendant's criminal history, and the judge's discretion. A first-time offender convicted of misdemeanor fraud might receive probation and restitution. A repeat offender or someone convicted of felony fraud is more likely to serve prison time. Restitution—paying back the victim—is ordered in almost all fraud cases, regardless of whether prison time is imposed.
How a Fraud Conviction Affects Credit and Borrowing
A fraud conviction does not directly appear on your credit report, but it affects your ability to borrow in other ways. Banks and credit card companies run background checks and can deny applications based on a criminal record. Mortgage lenders, auto lenders, and personal loan lenders do the same. A felony conviction makes it much harder to get approved for credit at all.
Even if you are approved, interest rates are higher for people with criminal records because lenders see them as higher risk. A person with a felony fraud conviction might be offered a credit card at 24% APR instead of 12%, or denied a mortgage entirely and forced to look for a private lender at much worse terms.
Restitution ordered by the court is separate from credit damage. If you are ordered to pay $5,000 in restitution and do not pay it, the victim can sue you in civil court, or the court can hold you in contempt. Unpaid restitution can also be reported to credit bureaus and damage your credit score, though it does not appear as a "fraud" mark—it appears as a judgment or collection account.
Defending Against a Fraud Charge
Common defenses to credit card fraud include mistaken identity (the card was used by someone else, not the defendant), authorization (the defendant had permission to use the card), or lack of intent (the charge was an honest mistake or dispute, not fraud). These defenses are stronger in misdemeanor cases than felony cases, because felony charges usually involve clear evidence of intent and a pattern of behavior.
If you are charged with credit card fraud, you should speak with a criminal defense attorney before speaking to police or prosecutors. An attorney can review the evidence, assess the strength of the case, negotiate with prosecutors, and advise you on whether to plead guilty or go to trial. Public defenders are available if you cannot afford an attorney.
Many fraud cases hinge on evidence like transaction records, surveillance video, or testimony from the card holder. If the prosecution's evidence is weak or was obtained illegally, an attorney can file motions to suppress it or dismiss the case. Even if the evidence is strong, an attorney can negotiate a plea deal that reduces the charge from felony to misdemeanor or reduces the sentence.
Frequently Asked Questions
Can I go to prison for using someone else's credit card once?
It depends on the amount and whether it crosses state lines. A single $100 charge is usually a misdemeanor with a maximum of one year in jail. A single charge over the state threshold (usually $500–$1,000) or one that crosses state lines is a felony and can result in prison time of one to five years. Federal fraud carries even longer sentences.
Is identity theft worse than regular credit card fraud?
Yes. Identity theft—opening a new account or card in someone else's name—is almost always charged as a felony because it causes ongoing harm to the victim's credit and finances. Regular fraud (using an existing card without permission) is more likely to be charged as a misdemeanor if the amount is small.
What is the difference between a misdemeanor and a felony fraud charge?
Misdemeanor fraud usually involves amounts under $500–$1,000 and carries a maximum sentence of one year in jail. Felony fraud involves larger amounts, patterns of fraud, or identity theft, and carries sentences of one to ten years in prison. A felony conviction is permanent and affects employment, housing, and credit far more than a misdemeanor.
Can a fraud charge be dropped or reduced?
Yes. Many fraud cases are resolved through plea agreements where the charge is reduced from felony to misdemeanor or from a higher felony to a lower one. First-time offenders sometimes may have access to for diversion programs where the charge is dismissed after completing restitution and a financial responsibility course. An attorney can negotiate these options.
Does a fraud conviction show up on background checks?
Yes. Both misdemeanor and felony fraud convictions appear on criminal background checks used by employers, landlords, and lenders. A felony conviction is visible for life in most states. A misdemeanor may fall off after seven to ten years depending on the state, but it can still be found with a thorough search.