Credit card fraud in California is prosecuted mainly under Penal Code sections 484d through 484j. The charge is usually theft-based, so the amount involved decides a lot. Value obtained above $950 in a six-month period is grand theft, which can mean up to a year in county jail or more. Federal prosecutors can also step in. Below is what the statutes cover, how the charge is built, what the state has to prove, and what to do if you have been arrested or contacted by investigators.
TL;DR
- California treats credit card fraud as a family of offenses in Penal Code 484d to 484j: stolen cards, forged cards, fraudulent use, retailer fraud, counterfeiting equipment and publishing stolen account data.
- Under 484g, obtaining more than $950 in value within six consecutive months is grand theft. At $950 or less it is petty theft, a misdemeanor in most cases.
- Prosecutors must prove intent to defraud. Using a card by honest mistake is not a crime.
- The same conduct can be charged federally, where the statute carries up to ten years in prison.
- What you say and sign in the first days matters. Talk to a criminal defense attorney before you speak to investigators.
Table of Contents
- What counts as credit card fraud under California law
- How the amount decides felony or misdemeanor
- Penalties after a conviction
- When credit card fraud becomes a federal case
- What prosecutors have to prove
- Common defenses
- Our perspective
- If you have been arrested or contacted
- How we can help
- After the case: clearing your record
- FAQ
- Sources
What counts as credit card fraud under California law
People say "credit card fraud" for many different acts. California's code is more specific. The statutes use the term "access card," which covers credit cards, debit cards and account numbers that can obtain money, goods or services. The conduct falls into a few groups.
Taking or holding someone else's card. Section 484e covers selling, transferring or conveying a card without the cardholder's consent and with intent to defraud. It also covers possessing a card without consent, with intent to defraud, and with intent to use, sell or transfer it. A third version targets anyone who acquires cards issued to four or more people within 12 months, when they have reason to know the cards were unlawfully taken or kept. The text is in the official code.
Forging or altering a card. Section 484f deals with forgery of card information. Our page on PC 484f credit card forgery explains how that charge is built.
Using a card or its data. Section 484g is the one most people are charged under. It prohibits using, with intent to defraud, access-card information that was altered, obtained or kept in violation of 484e or 484f. It also covers using a card you know is forged, expired or revoked to get value, and falsely claiming to be the holder of a card that was never issued, according to the text of section 484g. See our breakdown of PC 484g credit card fraud.
Retailer and equipment offenses. Section 484h addresses fraud by retailers who handle card transactions. Section 484i covers counterfeiting and the equipment used to make cards. Section 484j covers publishing stolen account information.
All of these require a fraudulent state of mind. That detail becomes the center of most defenses.
How the amount decides felony or misdemeanor
Most credit card fraud cases are treated as theft, so the dollar figure drives the charge.
Under 484g, if the value obtained exceeds $950 in any consecutive six-month period, the offense is grand theft (PEN 484g). Theft of property worth $950 or less is petty theft and is punishable as a misdemeanor, with exceptions for firearm theft and certain prior convictions (PEN 490.2).
The six-month window is where people get surprised. Ten small purchases of $120 each look minor one at a time. Added together, they pass $950 and can be charged as one grand theft. Prosecutors often add up transactions across several cards or merchants. That is why the accounting matters: which charges are actually tied to the accused, and which are not.
Grand theft is a "wobbler" in practice, meaning the prosecutor and sometimes the court has room to treat it as a misdemeanor or a felony depending on the facts and the person's history. For background on the theft statute itself, see our pages on grand theft under PC 487 and grand theft defense in California.
A quick worked example
Say a person is accused of using a found card at a gas station, a grocery store and an online retailer over three weeks.
| Scenario | Total value obtained | Likely classification |
|---|---|---|
| Two small purchases | $180 | Petty theft, misdemeanor |
| Eight purchases over a month | $940 | Petty theft, misdemeanor |
| Twelve purchases over five months | $1,350 | Grand theft, charged as misdemeanor or felony |
| Purchases plus possession of cards issued to four or more people | Any | Added 484e count, plus theft counts |
The table is illustrative. Actual charging decisions depend on the evidence, the county and the individual's record.
Penalties after a conviction
Grand theft, other than firearm theft and violations of section 487a, is punishable by imprisonment in county jail for up to one year, or under Penal Code section 1170(h) (PEN 489). Section 1170(h) is the realignment provision that allows certain felony sentences to be served in county jail rather than state prison, usually for longer terms.
Jail is only part of the exposure. A conviction for a theft or fraud offense involves dishonesty, and that can affect:
- Professional licenses and background checks.
- Employment in banking, finance, retail and any job with access to money.
- Immigration status for non-citizens. Anyone who is not a U.S. citizen should speak to a defense lawyer about immigration consequences before accepting any plea.
- Restitution to the bank or merchants, which can be ordered in addition to custody or probation.
Probation is a common outcome for first-time cases, with conditions that may include restitution, fines and a suspended jail term. Which outcome is realistic depends on the facts, the amount and the history. No honest lawyer can promise a result at the start.
When credit card fraud becomes a federal case
State and federal law overlap here. Federal law has its own credit card statute. 15 U.S.C. § 1644 penalizes fraudulent use of credit cards in interstate or foreign commerce, with a fine of up to $10,000, imprisonment of up to ten years, or both.
In practice, cases tend to move to federal court when one or more of these are present:
- Many victims or many cards across several states.
- Large dollar losses, or organized activity with several defendants.
- Online or international components, such as skimming devices, data breaches or shipping goods out of state.
- Links to other federal offenses such as identity theft, mail fraud or wire fraud.
A federal investigation often starts quietly. Agents may contact you or an employer before any charge is filed. If you get a call, a letter or a visit from federal agents, you have no obligation to answer questions. Ask for the agent's name and contact information and call a lawyer before you reply. We handle federal crimes defense for fraud and related charges in Los Angeles.
Related charges that often come with it
Card cases rarely stand alone. Prosecutors commonly add:
- Identity theft. If personal information was used to get credit or goods, PC 530.5 identity theft may be added.
- Forgery. Signing a receipt or altering a document can bring PC 470 forgery into play. See also forgery defense.
- Check fraud. If checks were involved alongside cards, PC 476 may apply.
Stacked charges raise the stakes and the leverage in plea talks, which is why each count should be reviewed on its own elements.
What prosecutors have to prove
The prosecution must show criminal intent. Using someone else's card by mistake is not enough, according to FindLaw's overview of credit card fraud charges. In California terms, that means intent to defraud for the 484e and 484g offenses, along with the specific act the section describes, such as possession without consent or use to obtain value.
In a real case, the state typically relies on:
- Bank and merchant records tying the transactions to a card.
- Surveillance video and delivery addresses.
- IP addresses and device records for online purchases.
- Statements made to police or loss-prevention staff.
- Cards, account numbers or skimming equipment found during a search.
Every one of those is a point where the case can be tested.
Common defenses
Possible defenses include actual innocence, lack of intent to defraud, mistaken identity, duress or coercion, and entrapment, as FindLaw notes. Here is how they tend to look in practice.
No intent to defraud. A spouse, partner, roommate or employee who had permission, or reasonably believed they did, is not acting with fraudulent intent. Shared accounts and informal family arrangements produce many of these cases.
Mistaken identity. Online fraud is committed from devices and addresses that several people share. Proof that the accused was the person at the keyboard or the register can be thin.
Honest mistake. Picking up a card left at a counter and handing it back, or a vendor charging the wrong account, is different from a scheme.
Duress or coercion. Some people are pressured into acting as couriers or "runners" for others.
Unlawful search or seizure. If officers found cards, devices or a phone through an illegal stop or search, a motion to suppress can remove the key evidence. Constitutional challenges are central to how we approach cases.
Overstated loss. Because the $950 line matters, challenging which transactions belong to the accused can move a case from grand theft to petty theft.
Our perspective
Credit card cases look simple on paper: a printout of charges and a name. Most are not. The evidence is usually a pile of records that someone has linked to a person by assumption.
We spend our days in Los Angeles County courtrooms, and that shapes how we handle these cases. We know how local prosecutors tend to charge fraud, how they add up loss figures, and when they will talk about reductions. We push on three things first: whether the stop or search was lawful, whether the state can really prove intent, and whether the dollar total is accurate. Each can change a charge.
We also look at options short of trial where they fit, such as intervention before charges are filed, diversion or alternative sentencing. Early action matters. A lawyer who contacts the prosecutor before a complaint is filed has more room than one who arrives after.
If you are under investigation, do not explain your side to a detective on your own. Explanations that sound reasonable to you are often used to supply the "intent" the state needs.
— Jake
If you have been arrested or contacted
- Stay quiet and ask for a lawyer. Be polite, give your name, and say you will not answer questions without an attorney.
- Do not consent to a search of your phone or computer. Officers may need a warrant. Let your lawyer deal with it.
- Keep records. Save receipts, messages and account statements that show permission or a legitimate source of funds.
- Do not contact the cardholder or the merchant. It can look like witness pressure, even if well meant.
- Check for warrants. If you missed a court date or think a warrant exists, resolve it through counsel rather than waiting for a traffic stop.
- Do not delete anything. Deleting data after you know of an investigation creates its own problems.
How we can help
Rubin Law, P.C. defends people charged with theft, fraud and other serious offenses in Los Angeles, including felony and federal matters. Our work includes courtroom advocacy, constitutional search and seizure challenges, pre-file intervention and alternative sentencing. If you have been arrested or think you are under investigation, see our criminal defense services and contact us to talk through your situation with an attorney.
After the case: clearing your record
If a case ends in a conviction on probation, you may later be able to ask the court to dismiss it. Our guide on how to seal or expunge a record in California covers the process, and the page on expungement under PC 1203.4 goes into eligibility. Expungement does not erase everything, so ask a lawyer how it applies to your situation.
FAQ
Is credit card fraud a felony in California?
It can be either. Under section 484g, value over $950 in six consecutive months is grand theft, which may be charged as a felony. At $950 or less it is generally petty theft and a misdemeanor. Other counts, such as possessing cards issued to four or more people, can raise the stakes.
Can credit card fraud be charged federally?
Yes. Federal law makes fraudulent use of credit cards in interstate or foreign commerce a crime with up to ten years in prison and a fine of up to $10,000. Cases with many victims, multiple states, large losses or online schemes are the ones most likely to attract federal attention.
What does the prosecution have to prove?
It has to show intent to defraud, not just that a card was used. Accidental or authorized use is not a crime. The state also has to connect you to the specific transactions, which is often where the case is weakest.
Why would someone go to jail for credit card fraud?
Because the law treats it as theft. Grand theft carries up to one year in county jail, or a longer felony term under Penal Code section 1170(h). Many first-time cases end in probation, but that depends on the facts and the person's history.
Should I talk to the police if I am accused?
No, not before speaking with a criminal defense lawyer. Statements meant to clear things up are often used to prove intent. Ask for an attorney and let counsel decide whether and how to respond.
Sources
- California Penal Code, Title 13, Chapter 5 (sections 484d to 484j)
- California Penal Code section 484g
- California Penal Code section 490.2
- California Penal Code section 489
- 15 U.S. Code § 1644, fraudulent use of credit cards
- Credit Card Fraud Charges and Penalties, FindLaw