Not all credit card fraud charges are the same. One of the most important—and misunderstood—parts of a credit card fraud case is whether the charge is filed as a misdemeanor or a felony. That distinction can mean the difference between probation and prison, a temporary setback or a permanent criminal record.
Many people are shocked to learn how quickly a seemingly minor situation can escalate into a felony charge.
The Difference Between Misdemeanor and Felony Credit Card Fraud
At a basic level:
- Misdemeanor credit card fraud involves lower dollar amounts and fewer transactions
- Felony credit card fraud involves higher financial loss, multiple incidents, or aggravating factors
However, the line between the two is not always clear—and prosecutors have broad discretion when deciding how to file charges.
What Determines Whether Credit Card Fraud Is a Felony or a Misdemeanor?
1. The Dollar Amount Involved
The total value of fraudulent transactions is often the most important factor.
- Small, isolated purchases may qualify as misdemeanors
- Larger totals can elevate the charge to a felony
- Multiple transactions are often combined to reach felony thresholds
Even small purchases can become serious when added together.
2. Number of Transactions
Prosecutors often look at patterns, not just single events.
Examples:
- One unauthorized purchase vs. several purchases over time
- Transactions across multiple merchants
- Repeated use of the same card
Multiple charges suggest intent, which prosecutors aggressively pursue.
3. Type of Card or Account Used
Certain situations increase charge severity:
- Use of stolen or counterfeit cards
- Use of card numbers obtained through data breaches
- Fraud involving business or corporate accounts
Cases involving stolen card information are more likely to result in felony charges.
4. Relationship to the Cardholder
Fraud cases involving people known to the cardholder—such as friends, family members, or coworkers—can become legally complex.
Key issues include:
- Whether permission existed
- Whether permission was exceeded
- Whether disputes arose after the fact
What feels like a personal dispute can still result in criminal prosecution.
5. Prior Criminal History
A prior record can significantly affect how charges are filed.
- First-time offenders may receive misdemeanor consideration
- Prior fraud or theft convictions increase felony risk
- Probation or parole status can escalate penalties
Even unrelated past convictions can influence charging decisions.
6. State vs. Federal Charges
While many credit card fraud cases are handled at the state level, some become federal cases, especially when they involve:
- Interstate transactions
- Online or digital fraud across state lines
- Large financial institutions
Federal charges often carry much harsher penalties and longer sentences.
Why Felony Credit Card Fraud Charges Are So Serious
A felony conviction can lead to:
- Prison time
- Substantial fines and restitution
- Loss of employment opportunities
- Difficulty securing housing or professional licenses
- Long-term damage to personal and financial reputation
Even if jail time is avoided, the collateral consequences can last a lifetime.
How Charges Can Escalate Without Warning
Many felony cases begin as investigations into minor activity. A single disputed transaction can prompt a deeper review of:
- Past purchases
- Account access history
- Digital records
Without legal guidance, individuals often provide statements or records that unintentionally strengthen the prosecution’s case.
Why You Need a Defense Attorney Early
An experienced defense attorney can:
- Challenge how transactions are grouped or valued
- Argue lack of intent or authorization
- Prevent unnecessary escalation of charges
- Intervene before prosecutors file the most serious counts
Early legal involvement often makes the difference between misdemeanor resolution and felony prosecution.
Protect Yourself Before Charges Escalate
If you are facing credit card fraud allegations—or believe an investigation is underway—do not wait for formal charges to be filed.
Simmons & Wagner defends individuals accused of credit card fraud and other serious financial crimes. Their attorneys understand how prosecutors build these cases and how to fight back before your future is defined by a charge.
The sooner you act, the more options you have. Contact Simmons & Wagner today to discuss your situation and protect your rights.