What constitutes the misuse of a credit card?

| Apr 5, 2021 | Criminal Defense |

Misusing credit cards is something that many people don’t think about, but it is against the law. What is it? The misuse of credit cards includes:

  • Using deception to get a new credit card
  • Purchasing a credit card from someone other than an issuer
  • Selling a credit card to another person

These are just three of many ways that a credit card could be misused in an illegal way. Some other kinds of misuse might constitute fraud, such as if you spend to the limit and then try to file for bankruptcy to avoid paying.

Is credit card misuse the same as fraud?

In a lot of cases, yes, it’s the same. For example, you are committing fraud if you lie about your income in order to get a larger credit card limit. You may be committing fraud if you run up your debt only to try to have it discharged in bankruptcy without paying on the items you purchased.

Misusing credit cards could lead to significant financial losses for credit card lenders as well as other victims, which is why it’s taken so seriously by the law.

Credit card fraud can also be committed by those authorized to provide goods and services

Did you know that it is fraud for someone who is selling goods or services to charge more than you agreed to or to issue charges for items you did not agree to purchase? No provider is able to use a card to create a transaction if you don’t approve that transaction.

How can you protect yourself against being accused of committing fraud?

To protect yourself, it’s important to be cautious about how you use credit cards. If you are taking payments, make sure your customers agree to the terms and sign for the purchase. If you are offered a credit card that comes from an unusual source, turn it down. It’s important to be sure of where you’re getting your credit as well as how you’re using it, so that you won’t be accused of trying to defraud the credit card company or breaking the law in other ways.