Is Using Someone Else's Credit Card Illegal?

Using another person's credit card without authorization is a federal and state crime in the United States. It falls under credit card fraud and identity theft laws, both of which carry heavy penalties.

The key word is authorization. If the cardholder has explicitly given you permission to use their card, it is generally legal. If they have not — or if you are using a lost, stolen, or counterfeit card — it is a crime from the first transaction.

This applies regardless of how much you spend. A single $5 purchase on a stolen card can result in the same criminal charge as a $5,000 one, though the severity of penalties typically scales with the amount involved.

For related financial crimes, see our articles on insurance fraud and property tax evasion.

Using someone else's credit card is illegal in all of the following situations:

Using a card without the owner's knowledge or consent. Whether the card was stolen, lost, or borrowed without asking, using it for any purchase is unauthorized use and constitutes fraud.

Using a card after permission has been revoked. If someone previously allowed you to use their card but has since told you to stop, continuing to use it is illegal — even if your name was once on the account.

Using a deceased person's card. A cardholder's account closes at death. Continuing to use their card after they die — even to pay for funeral expenses — is fraud.

Using a card you found. Finding a lost credit card does not give you the right to use it. Using a card you found is treated the same as using a stolen card.

Creating or using counterfeit cards. Skimming card data and creating duplicate cards, or using devices to steal card numbers, is a serious federal offense under 18 U.S.C. § 1029.

Making online purchases with a stolen card number. You do not need the physical card to commit fraud. Using a card number, expiration date, and CVV without authorization is illegal even if no physical card is involved.

This kind of financial deception carries similar legal weight to cheating on insurance claims — authorities treat both as deliberate theft from a financial system.

There are legitimate situations where using another person's card is perfectly legal:

Authorized user status. Many people add family members, spouses, or employees as authorized users on their credit card account. Authorized users are legally permitted to make purchases on the account.

Express verbal or written permission. If the cardholder hands you their card and tells you to make a specific purchase, that is authorized use. The key is that permission must be clear and current.

Business card use by employees. Employees given a company credit card for work expenses are authorized users, provided they use the card within the limits set by the employer. Misuse of a company card, however, can still result in termination and criminal charges.

Power of attorney. If you have been granted legal power of attorney over another person's finances, you are generally authorized to use their financial accounts, including credit cards, within the scope of that authority.

Note: Even with permission, using a card for purchases the cardholder would not approve of can cross into fraud territory — particularly in financial abuse situations involving elderly or vulnerable adults.

Penalties for unauthorized credit card use depend on the amount involved and whether federal or state charges apply:

Misdemeanor (small amounts, first offense): Fines up to $1,000–$5,000 and up to 1 year in county jail. Some states set the misdemeanor threshold at under $500 or $1,000.

State felony: For amounts typically over $1,000, prison sentences of 1–10 years and fines up to $10,000–$25,000 depending on the state.

Federal charges (18 U.S.C. § 1029): Federal credit card fraud carries up to 10 years in federal prison per count, and up to 20 years for organized rings or repeat offenders.

Identity theft enhancement: If personal data was stolen to commit the fraud, federal identity theft statutes add a mandatory minimum of 2 years on top of any other sentence.

Restitution: Courts almost always order convicted defendants to repay the full amount charged fraudulently, plus any fees incurred by the victim.

Civil liability: The cardholder or card issuer can sue separately in civil court for damages, regardless of the criminal case outcome.

Similar penalty structures apply to other financial crimes like insurance fraud — the dollar amount and intent determine how aggressively prosecutors pursue the case.

Here is what typically happens after unauthorized credit card use is discovered:

Cardholder notices and reports it. Most fraud is detected when the cardholder reviews their statement or receives a fraud alert. They report it to the card issuer, who opens an investigation.

Card issuer investigates. Banks have sophisticated fraud detection systems. They pull transaction records, merchant data, IP addresses for online purchases, and surveillance footage from point-of-sale locations.

Police report is filed. Once the issuer confirms unauthorized use, they typically advise the cardholder to file a police report. A case number is assigned and forwarded to detectives.

Law enforcement investigation. For large amounts, law enforcement may subpoena merchant records, bank records, and digital footprints. Investigators are often able to identify suspects quickly through surveillance and digital trails.

Arrest and charges filed. If a suspect is identified, charges are filed. First-time offenders for smaller amounts may be offered a plea deal involving restitution and probation. Larger cases or repeat offenses typically result in prosecution.

Federal involvement. If the fraud crosses state lines, involves counterfeit cards, or is part of a larger scheme, federal agencies including the Secret Service (which handles financial crimes) may become involved.

This investigation process is similar to how authorities approach property tax fraud and insurance fraud — digital evidence and financial records are central to building the case.

To protect yourself — whether as a cardholder or someone who uses cards on behalf of others:

As a cardholder: Monitor your statements regularly and enable transaction alerts through your bank's app. Report unauthorized charges immediately — the sooner you report, the stronger your liability protection.

If you share a card: Add trusted people as official authorized users through your bank rather than informally handing them your card. This creates a clear record of permission and protects both parties.

If you find a lost card: Do not use it. Hand it in to the nearest bank branch or cut it up. Using a found card is a crime from the very first transaction.

For business cards: Keep receipts and stay within company policy. Misuse of a corporate card — even for small personal purchases — can result in termination and criminal charges for workplace misconduct or fraud.

If you are an authorized user: Only use the card for the purposes the cardholder has approved. Exceeding the scope of permission — even with good intentions — can constitute fraud.

Protect your own card details: Never share your card number, CVV, or PIN unless you fully trust the recipient and the purpose. Stolen card numbers are used in online fraud constantly, even without the physical card changing hands.

Understanding financial laws broadly helps — see also our guides on insurance fraud and unpaid traffic tickets for related financial and legal consequences.