Credit card fraud in Texas happens when someone uses, possesses, or manipulates your credit or debit card information without your consent to obtain money, goods, or services.
Under Texas Penal Code §32.31 (Credit Card or Debit Card Abuse), this offense covers both physical card misuse and use of stolen card data for online or electronic transactions.
If someone charges purchases to your card, steals your card from the mail, installs a skimmer to capture your information, or applies for a card in your name without permission, that is credit card fraud under Texas law.
Definition: Credit Card Fraud in Texas
It's a crime across the U.S., not just in Texas, to fraudulently use, possess, or transfer a card with the intent to obtain a benefit. If you use someone else's credit or debit card without permission, or even possess multiple cards that aren't yours, prosecutors may charge you with credit card fraud.
Credit card fraud is separate from general theft (§31.03), as it focuses specifically on the misuse of financial access devices rather than taking physical property.
In 2023, Texas had about 31,591 reported incidents of credit card fraud, making it one of the states with the largest number of fraud incidents in the nation.
Texas Penal Code §32.31 (Credit Card or Debit Card Abuse)
As defined in Texas Penal Code §32.31, the law prohibits:
- Using a card without the owner's effective consent
- Stealing or receiving a stolen card
- Buying or selling a stolen card
- Using a card you know is expired or revoked
- Possessing two or more cards issued to others
- Presenting false information to obtain a card
Unlike standard theft charges, prosecutors don't always need to prove the exact dollar amount stolen. The act of misuse itself can trigger felony liability.
Is Credit Card Fraud a Felony or Misdemeanor?
Most credit card fraud cases in Texas are state jail felonies. However, the charge can escalate due to factors such as the following:
- Large financial loss
- Prior fraud or theft convictions
- Use of identity theft in connection with the offense
Common Examples of Credit Card Fraud
Credit card fraud can occur in multiple ways, including:
- Skimming devices: Hidden devices installed on ATMs or gas pumps can capture card data when someone swipes their card.
- Phishing scams: Fake emails, texts, or phone calls pretending to be from banks or retailers can trick victims into revealing card numbers.
- Fake taps: Fake contactless card readers can steal card data.
- Card-not-present fraud: Since online or phone purchases don't require physical cards, stolen credit card information can be used to make purchases.
- Mail theft: Stealing credit or debit cards from mailboxes before the cardholder receives them.
- Application fraud: Using stolen personal information to apply for and obtain a credit card in someone else's name.
- Possession of multiple stolen cards: Even if the cards have not yet been used, simply possessing two or more credit cards issued to others without consent can trigger felony charges.
Note: The offense does not require the cardholder to suffer massive losses, as the unauthorized use alone can support charges.
What Should Credit Card Theft Victims Do?
If your credit or debit card was used without your permission, take action quickly:
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Contact your bank or card issuer: Report the fraud to your bank immediately and ask them to freeze or cancel the compromised card.
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Review and document transactions: Screenshot or print fraudulent charges and keep copies of bank correspondence.
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Place a fraud alert or credit freeze: Contact one of the three major credit bureaus (Equifax, Experian, or TransUnion). Also, consider freezing your credit to prevent new accounts from being opened.
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File a police report: This may help dispute charges and protect you from further identity misuse.
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Report to the FTC: File an identity theft report at IdentityTheft.gov, which creates a recovery plan and documentation.
Penalties for Credit Card Fraud in Texas
Possible penalties include:
- Jail/Prison: 180 days to 2 years in a state jail facility (state jail felony)
- Fine: Up to $10,000
- Probation eligibility: Possible for qualified defendants, depending on criminal history
Additional consequences:
- Court costs
- Restitution to victims
- Loss of professional licenses
- Immigration consequences for non-citizens
- Enhanced sentencing if part of organized fraud activity
Note: The judge may consider criminal history, financial harm, and intent when determining sentencing.
Frequently Asked Questions
Is credit card fraud always a felony in Texas?
Yes, most cases are charged as state jail felonies.
Will you get your money back?
In many cases, yes. Federal law and card issuer policies often limit your liability for unauthorized charges if you report the fraud quickly.
Do you need to file a police report?
While not always required, filing a police report can help protect you if your identity is misused further.
Can someone go to jail for using your card?
Yes. Unauthorized use of your credit or debit card can result in felony charges and jail time.
Sources: Michael & Associates research and internal records; Texas Penal Code, Texas Code of Criminal Procedure, backgroundchecks.org
Additional statutory resources:
- https://statutes.capitol.texas.gov/?tab=1&code=PE&chapter=PE.31&artSec=31.03,
- https://statutes.capitol.texas.gov/GetStatute.aspx?Code=PE&Value=32.31
Note: This article was written by Ben Michael, Managing Partner of Michael & Associates (Texas Bar Card #24088055). It was originally published in March 2026 and has been reviewed for accuracy by the Michael & Associates research team and the attorneys.
