Credit card fraud is a felony when the amount stolen or the method used crosses a legal threshold, which varies by state and federal law

Credit card fraud can be prosecuted as either a misdemeanor or a felony depending on how much money was involved, whether multiple cards or people were targeted, and which state the crime occurred in. A single fraudulent charge of $50 might result in misdemeanor charges, while stealing $5,000 across several cards could trigger felony prosecution. The dividing line between the two is not the same everywhere — some states set the threshold at $500, others at $1,000 or higher.

Federal law also applies when fraud crosses state lines, involves the internet, or targets a financial institution directly. In those cases, the amount stolen matters less than the method. A person who hacks into a bank's system to steal card data, even if the total is small, can face federal felony charges. The same applies to organized schemes where multiple people work together to commit fraud, regardless of the dollar amount each person steals.

The consequences of a felony conviction are serious and lasting. A felony record affects employment, housing, professional licensing, and can result in prison time ranging from one to ten years depending on the severity and the state. A misdemeanor typically results in fines, restitution, and possibly jail time under one year, but does not carry the same long-term barriers to employment and housing.

Key Takeaways

  • Most states classify credit card fraud as a felony when the amount stolen exceeds a threshold that ranges from $500 to $1,000 or more, though some states use different amounts.
  • Federal felony charges can apply even to smaller amounts if the fraud involved hacking, the internet, multiple states, or a coordinated scheme with other people.
  • A felony conviction results in a permanent criminal record that affects employment, housing, and professional licensing, while a misdemeanor conviction typically does not.
  • Restitution — paying back the money stolen — is required in both misdemeanor and felony cases, and the victim's card issuer may pursue civil claims separately.

How states define the dollar threshold for felony charges

Each state sets its own cutoff amount that separates misdemeanor from felony fraud. In California, the threshold is $950; in Texas, it is $2,500; in New York, it is $1,000. Some states use a tiered system where stealing $500 to $1,000 is a misdemeanor, $1,000 to $5,000 is a felony, and amounts above that carry harsher penalties. Other states do not use a dollar amount at all — they focus instead on the method (such as identity theft or hacking) or the number of victims.

The threshold you need to know is the one in your state, because that is what a prosecutor will use to decide what charges to file. If you are facing fraud charges, the amount involved will be the first thing your attorney looks at. If the total is below the state threshold and no other aggravating factors exist (such as using someone else's identity or targeting a vulnerable person), the charges may be negotiated down to a misdemeanor or dismissed entirely.

Federal felony charges and when they apply instead of state charges

Federal prosecutors can bring charges for credit card fraud under 18 U.S.C. § 1029, which covers fraud involving access devices (cards, card numbers, PINs). Federal charges do not require a minimum dollar amount — a single fraudulent transaction can trigger federal prosecution if it involves the internet, crosses state lines, or targets a federally insured bank.

Federal charges are more common in organized fraud schemes, where multiple people work together to steal card data or use stolen cards in different states. They are also used when the fraud involves hacking into a bank's system, creating counterfeit cards, or selling stolen card numbers online. A federal felony conviction carries mandatory minimum sentences in some cases and can result in five to fifteen years in prison, depending on the specific offense and whether violence or identity theft was involved.

The difference between state and federal prosecution matters because federal sentences are typically longer, the investigation is more thorough, and the defendant faces a higher burden in court. However, federal charges are also less common for a single person committing isolated fraud — they are reserved for larger schemes or crimes that clearly cross state or institutional lines.

Aggravating factors that increase the severity of charges

Prosecutors consider more than just the dollar amount when deciding what charges to file. If you targeted multiple cards, multiple victims, or vulnerable people (such as elderly people or people with cognitive disabilities), the charges are likely to be more serious. Using someone else's identity, creating counterfeit cards, or hacking into a system also elevates the offense from simple fraud to identity theft or computer fraud, which carry separate and often harsher penalties.

A prior criminal history, especially prior fraud convictions, makes a current charge more serious. If you have been convicted of fraud before, a prosecutor is more likely to file felony charges even if the current amount is below the state threshold. Similarly, if the fraud was part of a larger pattern of criminal behavior, the charges may be enhanced.

The method also matters. Stealing a card from someone's wallet and using it once is treated differently than hacking into a merchant's system to steal thousands of card numbers. The latter is a federal crime and carries much harsher penalties, even if fewer people were directly harmed.

Misdemeanor fraud charges and their consequences

A misdemeanor fraud conviction typically results in fines ranging from a few hundred to several thousand dollars, restitution to the victim, and possibly jail time of up to one year. The exact sentence depends on the state, the amount stolen, and the defendant's criminal history. A misdemeanor does not appear on a background check in the same way a felony does, though it can still affect employment and housing decisions, especially in sensitive fields like finance, healthcare, or education.

Restitution is mandatory in misdemeanor cases. You will be ordered to pay back the full amount stolen, plus any costs the victim or their bank incurred investigating the fraud. This can include the cost of issuing a new card, the cost of fraud investigation, and any interest or fees the victim paid. Restitution is separate from any civil lawsuit the card issuer may file to recover losses.

A misdemeanor conviction is less damaging to your long-term prospects than a felony, but it is not invisible. Employers in certain industries will see it, and it may disqualify you from professional licenses or security clearances. The key difference is that a misdemeanor does not carry the same automatic barriers to employment and housing that a felony does.

What happens after a felony conviction for fraud

A felony conviction for credit card fraud results in a permanent criminal record that will appear on background checks for the rest of your life. This affects employment, housing, professional licensing, and voting rights in some states. Many employers, especially in finance, retail, and government, will not hire someone with a felony fraud conviction. Landlords often refuse to rent to people with felony records. Professional licenses in law, medicine, accounting, and other fields can be denied or revoked.

Prison time for a felony fraud conviction ranges from one to ten years depending on the amount stolen, the method used, and the state. Federal sentences are typically longer. In addition to prison, you will face substantial fines and restitution. You may also be required to register as a fraud offender in some jurisdictions, though this is less common than sex offender registration.

After release, a felony record follows you. You cannot legally own a firearm in most states, you may lose custody of children in family court proceedings, and you will face discrimination in housing, employment, and education. Some states offer expungement or record sealing after a certain period, but this is not automatic and requires a separate legal process.

How identity theft and card fraud charges differ

Credit card fraud and identity theft are related but separate crimes. Card fraud means using someone else's card or card number without permission. Identity theft means stealing someone's personal information (name, Social Security number, date of birth) and using it to open new accounts or commit other crimes. A single act can be both — for example, stealing someone's wallet, using their card, and opening a credit card in their name.

Identity theft charges are typically more serious than simple card fraud because they involve a greater invasion of privacy and cause longer-lasting harm. A victim of identity theft may spend years repairing their credit and dealing with fraudulent accounts opened in their name. Identity theft convictions often carry longer sentences and higher fines than card fraud alone. If you are charged with both card fraud and identity theft, you will face multiple counts and potentially much harsher penalties.

Restitution and civil liability after fraud charges

Restitution is a criminal court order requiring you to pay back the money stolen. It is separate from any civil lawsuit the card issuer or victim may file. The card issuer can sue you in civil court for the full amount of the fraud, plus attorney fees and court costs. You can be ordered to pay restitution in criminal court and also lose a civil lawsuit, resulting in two separate judgments against you.

Restitution is typically ordered as part of sentencing, whether the conviction is a misdemeanor or felony. The amount is the full loss to the victim, which may include not just the fraudulent charges but also the cost of investigating the fraud, issuing new cards, and any interest or fees incurred. If you cannot pay restitution immediately, the court may order you to pay in installments, and failure to pay can result in additional criminal charges or violation of probation.

The card issuer's civil claim is separate and proceeds independently of the criminal case. Even if you are acquitted in criminal court or the charges are dismissed, the card issuer can still sue you in civil court and win. The civil standard of proof is lower (preponderance of the evidence rather than beyond a reasonable doubt), so a civil conviction is easier to obtain than a criminal one.

Frequently Asked Questions

Can credit card fraud be charged as a felony if the amount is under $500?

Yes, if aggravating factors are present. Using someone else's identity, targeting multiple victims, hacking into a system, or committing fraud as part of an organized scheme can result in felony charges even if the total amount is small. Federal charges can apply regardless of the dollar amount if the fraud involved the internet or crossed state lines.

What is the difference between a misdemeanor and a felony fraud conviction?

A misdemeanor typically results in fines, restitution, and up to one year in jail. A felony results in a permanent criminal record, one to ten years in prison, and long-term barriers to employment, housing, and professional licensing. A felony conviction is far more damaging to your future prospects.

If I am charged with fraud, should I try to pay back the money to avoid felony charges?

Paying back the money may help at sentencing, but it will not prevent charges from being filed or determine whether they are misdemeanor or felony charges. The decision to charge you is made by the prosecutor based on the amount, method, and your history — not on whether you repay. Speak with a criminal defense attorney before taking any action.

Can a felony fraud conviction be removed from my record?

Some states allow expungement or record sealing after a certain period (typically five to ten years), but this is not automatic and requires a separate legal process. You must petition the court, and the prosecutor can object. may be able to access depends on your state's laws and the specific offense. Consult a criminal defense attorney in your state to learn whether expungement is possible in your case.

What happens if I am charged with fraud in one state but the victim lives in another?

Federal charges may apply if the fraud crossed state lines or involved the internet. You could be prosecuted in federal court, in the state where the fraud occurred, or in the state where the victim lives, depending on the circumstances. Federal prosecution typically results in harsher penalties than state prosecution.