Credit card fraud is a felony when the amount stolen exceeds a threshold set by state law, typically between $500 and $1,000, or when the fraud involves organized schemes or multiple victims
Whether credit card fraud is charged as a felony depends on the dollar amount involved and the method used. Most states treat small-dollar fraud — a single unauthorized charge of $200, for example — as a misdemeanor. But if someone uses your card number repeatedly, steals from multiple people, or takes a large sum in one transaction, prosecutors can file felony charges. The exact threshold varies by state, and some states have no minimum amount if the fraud involves identity theft or a coordinated scheme.
The distinction matters because felony convictions carry prison sentences of one year or more, while misdemeanors typically result in jail time under one year, fines, or both. A felony also creates a permanent criminal record that affects employment, housing, and credit. If you are the victim of credit card fraud, understanding these categories helps you know what law enforcement can pursue. If you are facing charges, the amount and method determine whether you are dealing with a misdemeanor or a felony case.
Key Takeaways
- Credit card fraud becomes a felony in most states when the stolen amount exceeds $500 to $1,000, though the exact threshold varies by jurisdiction.
- Using someone else's card multiple times, stealing from more than one person, or combining fraud with identity theft can result in felony charges even for smaller amounts.
- Felony convictions carry prison sentences of at least one year and create a permanent criminal record affecting employment and housing.
- State law determines the charges, so the same fraud amount may be a misdemeanor in one state and a felony in another.
- Victims should report fraud to their card issuer and local law enforcement; the issuer handles the financial dispute while police investigate criminal charges.
How dollar amount determines felony versus misdemeanor charges
Each state sets its own threshold for when fraud crosses from misdemeanor to felony territory. In California, for example, theft over $950 is a felony; in Texas, the line is $2,500; in New York, it is $1,000. Below that amount, the charge is typically a misdemeanor, even if the fraud is deliberate and repeated.
The threshold applies to the total amount taken in a single transaction or scheme. If someone makes ten $50 charges on your card, prosecutors may add those together and charge felony theft if the total exceeds the state's limit. However, if each charge is treated as a separate incident and the person is caught after only two or three charges, the total may fall below the felony threshold, resulting in misdemeanor charges instead.
Some states have tiered systems: fraud under $500 is a Class C misdemeanor, $500 to $2,000 is a Class B misdemeanor, and over $2,000 is a felony. Others use a single threshold. Check your state's penal code or ask a local prosecutor's office for the exact amounts, as they change periodically and vary significantly across the country.
When fraud becomes a felony regardless of amount
Certain methods or circumstances can trigger felony charges even if the dollar amount is small. If the fraud involves identity theft — using someone's personal information to open new accounts or take out loans — most states treat this as a felony automatically, sometimes regardless of the amount stolen. Identity theft is considered more serious because it damages the victim's credit and can take months or years to resolve.
Organized fraud schemes also cross into felony territory. If someone works with others to systematically target multiple cardholders, or if they use stolen card numbers to commit fraud in multiple states, federal charges may explore. The Wire Fraud Act makes it a federal felony to use electronic communications (including credit card transactions) to defraud someone, with sentences up to 20 years in prison.
Repeat offenders face enhanced charges as well. A person with prior fraud convictions may be charged with a felony for an amount that would normally be a misdemeanor. Some states also treat fraud involving vulnerable victims — elderly people, minors, or those with cognitive disabilities — as an automatic felony.
The difference between civil disputes and criminal charges
When your credit card is fraudulently used, two separate processes happen in parallel. The civil dispute is between you and your card issuer. You report the unauthorized charges, the issuer investigates, and if fraud is confirmed, they refund your money and cancel the card. This process is handled by the card company's fraud department and typically takes 30 to 90 days. You are protected by federal law (the Fair Credit Billing Act) and do not pay for fraudulent charges.
The criminal investigation is separate. Local police or the FBI investigate who committed the fraud and whether charges should be filed. This process is slower and does not may provide a prosecution. Many fraud cases, especially small ones, do not result in criminal charges because police resources are limited and the case may be difficult to solve. Even if charges are filed, the outcome — misdemeanor or felony — depends on the amount and method, not on whether you were refunded.
As a victim, you do not decide whether charges are filed. You report the fraud to your issuer (who handles the refund) and to local law enforcement (who investigate the crime). The prosecutor's office decides whether to press charges and what level of charges to pursue.
Felony penalties and what a conviction means
A felony credit card fraud conviction typically results in prison time of one to five years, depending on the amount and the offender's history. Sentences can be longer if the fraud was part of a larger scheme or if the offender has prior convictions. In addition to prison, courts impose fines (often $1,000 to $10,000 or more), restitution to the victim, and probation after release.
The criminal record itself is often the longest-lasting consequence. 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 often refuse to rent to felons. Some states restrict voting rights for people with felony convictions. The record is permanent unless the person later petitions for expungement, which is available in some states but not others.
Misdemeanor convictions carry shorter sentences (typically under one year in jail) and smaller fines, but they also create a criminal record. The difference is that a misdemeanor is less likely to disqualify someone from employment or housing, though it still appears on background checks.
What to do if you are a victim of credit card fraud
Contact your card issuer when ready — most have a fraud hotline on the back of your card or on their website. Report the unauthorized charges and request a new card. The issuer will freeze the account, investigate the charges, and refund your money. You are not responsible for fraudulent charges under federal law, though you may have a small liability ($0 to $50) depending on your card's terms and how quickly you reported the fraud.
File a report with your local police department or the FBI's Internet Crime Complaint Center (IC3) if the fraud occurred online. Provide the police report number to your card issuer; they may need it for their investigation. Keep copies of all correspondence with the issuer and police.
Monitor your credit report for additional fraud. You can request a free credit report from each of the three major bureaus (Equifax, Experian, TransUnion) once per year at annualcreditreport.com. If you see unauthorized accounts or inquiries, place a fraud alert or credit freeze on your file to prevent further damage.
State-by-state felony thresholds for fraud
| State | Felony Threshold | Notes |
|---|---|---|
| California | Over $950 | Proposition 47 lowered the threshold; amounts under $950 are misdemeanors |
| Texas | Over $2,500 | $750–$2,500 is a state jail felony; over $2,500 is a higher felony |
| New York | Over $1,000 | Amounts $1,000–$3,000 are Class E felonies; higher amounts carry steeper charges |
| Florida | Over $750 | Amounts $750–$5,000 are third-degree felonies |
| Illinois | Over $500 | Amounts $500–$10,000 are Class 3 felonies |
| Ohio | Over $1,000 | Amounts $1,000–$7,500 are fifth-degree felonies |
These thresholds change periodically and vary significantly. Some states adjust them for inflation every few years. Before assuming a charge is a misdemeanor or felony, check your state's current penal code or contact your local prosecutor's office.
Frequently Asked Questions
Can someone be charged with felony fraud if they only used my card once?
Yes, if the single charge exceeds your state's felony threshold. For example, if someone makes one $3,000 fraudulent purchase in Texas (where the threshold is $2,500), they can be charged with a felony even though it was a single transaction. The number of times the card is used matters less than the total amount taken.
What is the difference between credit card fraud and identity theft?
Credit card fraud is unauthorized use of an existing card number. 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 treated more seriously and often results in felony charges regardless of the amount, because it damages the victim's credit long-term.
If I report fraud to my card issuer, will the person who did it be prosecuted?
Not necessarily. Your card issuer refunds the money and investigates internally, but they do not decide whether criminal charges are filed. You must report the fraud to local police or the FBI for a criminal investigation. Even then, prosecution depends on whether police can identify the person and whether the prosecutor's office has resources to pursue the case.
Can I be charged with credit card fraud if I use someone else's card with their permission?
No. If the cardholder gave you permission to use the card, it is not fraud. However, if you use the card beyond the scope of permission (for example, they let you buy groceries but you use it to buy electronics), you could be charged with fraud or theft depending on the amount and your state's law.
Does a felony fraud conviction affect my ability to get a credit card in the future?
Yes. A felony conviction appears on background checks, and most card issuers will deny applications from people with recent fraud convictions. Some issuers may consider applications after several years have passed and the person has rebuilt their credit, but approval is not may provide. Secured credit cards (which require a cash deposit) are sometimes easier to obtain after a conviction.