Credit Card Transaction Record Laundering: Texas Penal Code §32.35

The Texas Credit Card Transaction Record Laundering law gives police the right to arrest you if they believe you engaged in making certain fake credit card transactions.

This law generally applies to people who are authorized by a person licensed under Chapter 342, Finance Code (a bank, savings and loan association, credit union, or other regulated financial institution that lends money or otherwise extends credit to a cardholder through a credit card and that authorizes other persons to honor the credit card) to furnish property, service, or anything else of value upon presentation of a credit card by a cardholder.

The Texas legislature codified this criminal offense in Texas Penal Code Section 32.35. The legislature did not update this law in 2023. In fact, this law has not been amended since 2015.

The Penal Code classifies the Texas Credit Card Transaction Record Laundering law under Title 7 “Offenses Against Property,” Chapter 32 “Fraud.” Learn more about the Texas offense of Credit Card Transaction Record Laundering below.

What is the current Texas law about Credit Card Transaction Record Laundering?

Texas law currently defines the offense of Credit Card Transaction Record Laundering in Penal Code Section §32.35 as follows:^[1]

(b) A person commits an offense if the person is an authorized vendor who, with intent to defraud the creditor or cardholder, presents to a creditor, for payment, a credit card transaction record of a sale that was not made by the authorized vendor or the vendor’s agent.

(c) A person commits an offense if, without the creditor’s authorization, the person employs, solicits, or otherwise causes an authorized vendor or the vendor’s agent to present to a creditor, for payment, a credit card transaction record of a sale that was not made by the authorized vendor or the vendor’s agent.

The statute defines the term “authorized vendor” as “a person authorized by a creditor to furnish property, service, or anything else of value upon presentation of a credit card by a cardholder.”^[2]

The statute defines the term “creditor” as “a person licensed under Chapter 342, Finance Code, a bank, savings and loan association, credit union, or other regulated financial institution that lends money or otherwise extends credit to a cardholder through a credit card and that authorizes other persons to honor the credit card.”^[3]

The statute defines the term “cardholder” as “the person named on the face of a credit card to whom or for whose benefit the credit card is issued, and includes the named person’s agents.”^[4]

The statute defines the term “credit card” as “an identification card, plate, coupon, book, number, or any other device authorizing a designated person or bearer to obtain property or services on credit. It includes the number or description on the device if the device itself is not produced at the time of ordering or obtaining the property or service.”^[5]

How can I be charged with a Credit Card Transaction Record Laundering offense in Texas?

You can be charged with Credit Card Transaction Record Laundering in Texas if the state’s attorneys believe that each of the elements of 32.35 as described in the section above have been met.

What is the statute of limitation for Credit Card Transaction Record Laundering in Texas?

Misdemeanor level Credit Card Transaction Record Laundering charges have a two-year limitations period.^[6] Felony level offenses have a three-year limitations period.^[7]

What is the penalty for a Texas Credit Card Transaction Record Laundering offense?

The punishment for a conviction for Credit Card Transaction Record Laundering ranges from a Class C misdemeanor to a first degree felony, depending on the amount of the record of the sale.^[8]

Can you get probation for Credit Card Transaction Record Laundering in Texas?

The Texas Code of Criminal Procedure allows both judges and juries to grant probation for Credit Card Transaction Record Laundering, and judges are also allowed to accept deferred adjudication plea deals.^[9]

Note, however, that no matter the offense, neither judges nor juries may recommend community supervision for any suspended sentence of over 10 years.^[10] Also, judges may not grant community supervision after a conviction if (1) the defendant used or exhibited a deadly weapon during the commission of the felony or immediate flight thereafter and (2) the defendant used or exhibited the deadly weapon himself or was a party to the offense and knew that a deadly weapon would be used or exhibited.^[11]

What level of crime is Credit Card Transaction Record Laundering in Texas?

The Penal Code classification of the punishment for Credit Card Transaction Record Laundering ranges from a Class C misdemeanor to a first degree felony, depending on the amount of the record of sale.

Learn more about the penalty range for this offense in the section above.

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Legal References:

^1. Texas Penal Code §32.35. This law is current as of 2024.^2. Texas Penal Code §32.35(a)(1)^3. Texas Penal Code §32.35(a)(5)^4. Texas Penal Code §32.35(a)(3)^5. Texas Penal Code §32.35(a)(4)^6. Code of Criminal Procedure 12.02(a)^7. See Code of Criminal Procedure 12.01(9)^8. Texas Penal Code §32.35(e)

(e) An offense under this section is a:

(1) Class C misdemeanor if the amount of the record of a sale is less than $100;

(2) Class B misdemeanor if the amount of the record of a sale is $100 or more but less than $750;

(3) Class A misdemeanor if the amount of the record of a sale is $750 or more but less than $2,500;

(4) state jail felony if the amount of the record of a sale is $2,500 or more but less than $30,000;

(5) felony of the third degree if the amount of the record of a sale is $30,000 or more but less than $150,000;

(6) felony of the second degree if the amount of the record of a sale is $150,000 or more but less than $300,000; or

(7) felony of the first degree if the amount of the record of a sale is $300,000 or more.

^9. See Chapter 42, Texas Code of Criminal Procedure, Art. 42A.054, Art. 42A.056, Art. 42A.102^10. Art. 42A.053(c), Texas Code of Criminal Procedure^11. Art. 42A.054(b), Texas Code of Criminal Procedure