Credit and debit cards run through nearly every purchase people make, and Tennessee law responds with a set of offenses aimed at their misuse. Using someone else’s card without permission, possessing a card you know to be stolen, or running a card that has been revoked or cancelled can all be charged under T.C.A. § 39-14-118, the statute covering illegal possession and fraudulent use of a credit or debit card. What can start as borrowing a relative’s card, or as a purchase that seemed harmless in the moment, can turn into a criminal charge that is graded like theft and, at higher dollar amounts, carries felony exposure.
These cases arrive in Middle Tennessee courts in many forms — a former employee using a company card, a caretaker running an elderly person’s account, a person caught with a wallet full of cards that are not theirs, or a purchase made with a number lifted from a receipt. Because card offenses often overlap with theft and identity-theft charges, the same conduct can be described several ways, and the grading and penalties can shift dramatically with the amount involved. This article explains what T.C.A. § 39-14-118 prohibits, how it is graded, how it relates to identity theft, and the defenses a Tennessee criminal defense attorney examines in a card-fraud case.
What the Statute Prohibits
Under T.C.A. § 39-14-118, it is an offense to use a credit or debit card, or the information from such a card, to obtain money, goods, services, credit, or anything of value when the person knows the card or its use is unauthorized. The statute reaches a card that is stolen, forged, revoked, cancelled, or expired, and it reaches a card that simply belongs to someone else and is being used without that person’s consent. Importantly, the law covers not only the physical card but the account information itself — the number, expiration, and security code — because so much card fraud now happens without the plastic ever changing hands.
The statute captures two overlapping wrongs. The first is fraudulent use: running a card or card information to obtain value while knowing the use is not authorized. The second is illegal possession: holding a credit or debit card that the person knows to be stolen, forged, or otherwise obtained without the cardholder’s consent, or holding another person’s card with intent to use it fraudulently. A person can be charged with possession even before any purchase is made, which is why arrests sometimes follow the discovery of cards that do not match the person carrying them.
The Knowledge Requirement
Every version of this offense turns on knowledge. The prosecution must prove the defendant knew the card or its use was unauthorized — that the card was stolen, that consent had not been given, or that the card had been revoked or cancelled. A person who reasonably believed they had permission to use a card, or who did not know a card in their possession was stolen, lacks the mental state the statute requires. As with most property crimes, this knowing state of mind is the element most often in dispute.
The Elements the State Must Prove
In a fraudulent-use case, the State must establish each of the following beyond a reasonable doubt:
- Use of a card or card information. The defendant used, or attempted to use, a credit or debit card or its account data.
- To obtain something of value. The use was aimed at obtaining money, goods, services, credit, or anything of value.
- Lack of authorization. The card was stolen, forged, revoked, cancelled, expired, or belonged to another person who did not consent.
- Knowledge. The defendant knew the card or its use was unauthorized at the time.
In an illegal-possession case, the focus shifts from a transaction to the card itself: the State must show the defendant possessed a credit or debit card knowing it was stolen, forged, or obtained without consent, or possessed another’s card intending to use it fraudulently. In both forms, the defense examines exactly what the defendant knew and when, because a gap in the knowledge proof can defeat the charge entirely.
How the Charge Is Graded and Punished
The penalty structure under T.C.A. § 39-14-118 splits along a simple line: whether the defendant obtained anything of value. Where the fraudulent use results in obtaining property, credit, goods, or services, the offense is punished as theft under T.C.A. § 39-14-105, graded by the value obtained. Where no value is obtained — an attempt that fails, or possession without any purchase — the offense is a Class A misdemeanor. This structure means the amount of the fraudulent charges drives the severity of the case.
The theft grading tiers that apply when value is obtained are:
- Less than $1,000 — Class A misdemeanor (up to 11 months, 29 days in jail).
- $1,000 to less than $2,500 — Class E felony (one to six years).
- $2,500 to less than $10,000 — Class D felony (two to twelve years).
- $10,000 to less than $60,000 — Class C felony (three to fifteen years).
- $60,000 to less than $250,000 — Class B felony (eight to thirty years).
- $250,000 or more — Class A felony (fifteen to sixty years).
The value used for grading is the total obtained through the fraudulent use. Card-fraud cases frequently involve a string of transactions, and the State typically adds those charges together when they are part of a single scheme against the same account. That aggregation can lift a series of small purchases across a felony threshold, which is why the total dollar figure is often the most consequential number in the case. For a broader look at how property-crime grading works, see our guide to theft and shoplifting charges in Tennessee.
Within any felony class, the actual sentence depends on the defendant’s criminal history and the range set by the court. A first offender usually falls in the lowest range, while a defendant with prior felonies faces a longer term and a higher release-eligibility percentage. Our overview of Tennessee sentencing ranges explains how a felony class translates into an actual number of years and how much of a sentence must be served.
Relationship to Identity Theft and Other Charges
Card fraud rarely travels alone. The same conduct that supports a charge under T.C.A. § 39-14-118 often supports additional charges, and prosecutors frequently stack them. Understanding how the offenses relate helps a defendant see the full exposure and where a defense can narrow the case.
Identity Theft
Tennessee’s identity-theft statute punishes the knowing use of another person’s identifying information — including account numbers — to obtain a benefit or to defraud. Where card fraud involves acquiring and using a victim’s personal account data, the State can charge identity theft alongside fraudulent use of the card. The two offenses overlap, but they are not identical: identity theft focuses on the misuse of personal identifying information, while the card statute focuses on the card and its account. A defense attorney examines whether both charges are truly supported or whether one is a duplicative add-on.
Theft and Forgery
If the defendant is alleged to have stolen the card in the first place, a separate theft charge can follow. If a signature was forged to complete a transaction, forgery can be added. Where fraudulent card use funds a larger scheme, fraud counts can multiply. Because these charges share facts, the way the State elects to charge them affects both the grading and the number of convictions a defendant faces if the case is not defended.
When the same act is charged under several statutes, questions of double jeopardy and merger can arise — whether the defendant can be convicted and punished separately for offenses that are essentially one wrong. These are legal questions a defense attorney raises before trial and at sentencing, and they can reduce a multi-count indictment to a single conviction.
Common Defenses to a Card-Fraud Charge
Card-fraud cases hinge on knowledge, authorization, and identity, and each of those opens a line of defense. The right approach depends on the transaction records, the surveillance footage, and what the cardholder authorized.
Authorization or Consent
Many card cases arise between people who know each other — family members, partners, roommates, or coworkers. If the cardholder gave the defendant permission to use the card, there is no fraud, even if the cardholder later regretted the purchases or the relationship soured. Text messages, a history of shared spending, and prior authorized use all support a consent defense. Disputes about the scope of permission — how much, for how long — are common and are fact questions a jury decides.
Lack of Knowledge
A person who did not know a card was stolen, revoked, or cancelled lacks the required mental state. Someone handed a card and asked to make a purchase, or who received a card in the mail, may have had no reason to know it was unauthorized. Without proof of knowledge, neither the possession nor the fraudulent-use offense stands.
Mistaken Identity
Because so much card fraud happens online or at self-checkout, proving who ran the transaction can be difficult. Surveillance images can be grainy, account data can be used remotely, and cards can pass through many hands. A defense attorney tests whether the evidence truly ties the defendant to the transaction, or whether the State has simply connected a name to an account without proving the person behind the purchase.
Disputed Value and Aggregation
Because the amount obtained sets the grade, the defense scrutinizes how the State calculated it. Charges that were declined, reversed, or refunded should not count toward the total. Transactions that are not truly part of one scheme should not be aggregated. Pushing the value below a felony threshold can change the entire character of the case.
Constitutional Challenges
How the evidence was gathered matters. If police searched a phone, a car, or a wallet without a valid warrant or a recognized exception, the card evidence may be suppressed. Our discussion of suppression motions in Tennessee explains how a successful motion can remove key evidence, and our overview of search and seizure under the Fourth Amendment explains the rules police must follow.
The Court Process and What to Expect
A card-fraud case usually begins with a report from the cardholder or the card issuer, followed by an investigation that pulls transaction records, surveillance video, and account histories. A misdemeanor charge can be resolved in General Sessions Court, while a felony charge proceeds through a preliminary stage and can be bound over to the grand jury for indictment and then to Criminal Court. Because these cases are built on documents, discovery — the exchange of the State’s evidence — is central, and a careful review of the transaction data often reshapes the case.
Restitution plays a large role in how card cases resolve. Making the cardholder or issuer whole is often a condition of a favorable outcome, and a defendant who is prepared to repay the loss is in a stronger negotiating position. For first-time offenders, a program that avoids a conviction may be available; our overview of diversion programs in Tennessee explains how pretrial and judicial diversion can keep a first offense off a permanent record. Where the evidence is strong, a negotiated resolution may still reduce the charge or the sentence — our discussion of plea bargains in Tennessee explains how those decisions are weighed.
Davidson County and Middle Tennessee Realities
In Davidson County, card-fraud cases move through the criminal courts in downtown Nashville, and the district attorney’s office prosecutes them as ordinary property offenses. The volume of electronic transactions in a city the size of Nashville means these cases are common, and the evidence is frequently a mix of bank records and store surveillance. A defense that engages early — before the case is indicted — can sometimes shape the charging decision by showing consent, questioning the value, or documenting restitution.
The surrounding counties — Williamson, Rutherford, Sumner, Wilson, and Maury — handle these cases through their own courts, and each district attorney’s office has its own approach to diversion and restitution-based resolutions. Cases involving a vulnerable victim, such as an elderly cardholder, tend to draw closer scrutiny and firmer positions from prosecutors. Knowing the local practice, and presenting the client’s circumstances persuasively, is part of what an experienced Middle Tennessee defense attorney brings to the table.
A practical point: people charged with card fraud often want to explain themselves to police or to the cardholder, believing a quick clarification will end the matter. That instinct is risky. Statements made without counsel can supply the very knowledge and intent the State needs to prove. The safer course is to say little, preserve any evidence of consent, and let a lawyer manage communication with investigators and the alleged victim. For a case in Davidson County criminal defense, early involvement of counsel consistently produces better outcomes.
Why the Evidence Trail Cuts Both Ways
Card-fraud cases are unusual among property crimes because they generate a detailed electronic record. Every transaction leaves a timestamp, a location or merchant identifier, and often a photograph or video. That record is the backbone of the State’s case, but the same trail can favor the defense. Location data can place the accused somewhere other than the transaction, timestamps can conflict with the State’s timeline, and merchant records can show a purchase pattern consistent with authorized, ordinary use rather than fraud.
Because the evidence is so document-heavy, a thorough defense begins with a complete demand for discovery — the transaction logs, the surveillance footage, the issuer’s fraud-investigation notes, and any statements the cardholder gave. Issuers and banks conduct their own internal reviews before a case ever reaches the district attorney, and those reviews sometimes contain admissions, inconsistencies, or alternate suspects that never make it into the police report. Obtaining and scrutinizing that material can reshape the case, and it is a step that requires counsel who knows what to ask for.
Collateral consequences make that effort worthwhile. A conviction for a card offense is a crime of dishonesty, which can damage credibility in any future proceeding, appear on employer and landlord background checks, and complicate professional licensing. At felony grades, the usual felony consequences attach as well, including loss of firearm rights. Keeping the offense at a misdemeanor level, or resolving it without a conviction through restitution and diversion, is frequently the most important thing a defense can accomplish for a first-time client.
Frequently Asked Questions
Is using a family member’s card without asking a crime?
It can be, if the use was unauthorized and you knew it. The statute reaches using another person’s card without their consent to obtain something of value. Whether consent existed is often the central question, and it turns on the relationship and any history of permitted use. Many of these cases are genuine disputes about the scope of permission rather than clear-cut fraud, which is why the facts around consent matter so much.
What is the penalty for credit card fraud in Tennessee?
It depends on whether anything of value was obtained and how much. If value was obtained, the offense is punished as theft, graded from a Class A misdemeanor below $1,000 up through felony classes as the amount rises. If no value was obtained — a failed attempt or bare possession — it is a Class A misdemeanor. The total dollar figure, and whether multiple transactions are added together, largely determines the exposure.
Can I be charged just for having someone else’s card?
Yes. Illegal possession of a credit or debit card is an offense where a person holds a card knowing it is stolen, forged, or obtained without consent, or holds another’s card intending to use it fraudulently. No purchase is required. The key issue is knowledge — whether you knew the card was unauthorized — and possession without that knowledge is not a crime.
How does card fraud relate to identity theft?
They often overlap. When card fraud involves acquiring and using a victim’s personal account information, the State can charge identity theft as well as fraudulent use of the card. The two offenses focus on different things — identity theft on the misuse of identifying information, the card statute on the card and its account — and prosecutors sometimes charge both. A defense attorney examines whether both charges are truly supported or whether one is duplicative.
Will paying the money back resolve the case?
Restitution does not automatically dismiss a filed charge, but it is important to how these cases resolve. Repaying the loss supports negotiations toward a reduced charge, a diversion program, or a dismissal in the right circumstances, and it demonstrates good faith to the court. A defense attorney can structure restitution so that it advances the criminal case rather than simply settling a debt.
Talk to a Nashville Criminal Defense Lawyer
If you are facing criminal charges in Tennessee, the decisions you make early in your case can shape everything that follows. Nashville criminal defense attorney Nathan Cate represents clients charged with felonies and misdemeanors throughout Davidson County and Middle Tennessee. With 53 jury trials taken to verdict and 12 outright Not Guilty acquittals, he brings courtroom experience to every stage of a case — from the first hearing through trial and appeal.
Call (615) 664-8083 to schedule a consultation, or visit the office at 222 2nd Avenue North, Suite 220, Nashville, TN 37201.