Fraudulent Use, Possession, or Tampering with Gift Card, Gift Card Packaging, or Gift Card Data or Redemption Information: Texas Penal Code §32.56

The Texas Fraudulent Use, Possession, or Tampering with Gift Card, Gift Card Packaging, or Gift Card Data or Redemption Information law gives police the right to arrest you if they believe you obtained, kept, altered, tampered with, transported, used, or tried to use a gift card, its digital data, or its redemption information without consent, or if you brought unactivated gift cards into a store and placed them for sale, and you did so with the intent to harm or defraud someone.

The legislature codified this offense in Penal Code Section 32.56, effective September 1, 2025. This provision targets common “gift card draining” schemes by criminalizing possession of stolen card data, swapping packaging, using counterfeit cards, and “re-seeding” store racks with unactivated cards. The penalty ladder is based on the number of cards or card-data items involved rather than the dollar value.

Important: due to legislative carelessness in 2025, there are four different offenses all numbered Section 32.56. As of September 1, 2025, the Penal Code contains four separate Section 32.56 statutes. Always check which Section 32.56 you are dealing with.

The Penal Code classifies the Texas Fraudulent Use, Possession, or Tampering with Gift Card law under Title 7 “Offenses Against Property,” Chapter 32 “Fraud.” Learn more about the Texas offense of Fraudulent Use, Possession, or Tampering with Gift Card, Gift Card Packaging, or Gift Card Data or Redemption Information below.

What is the current Texas law about Fraudulent Use, Possession, or Tampering with Gift Card, Gift Card Packaging, or Gift Card Data or Redemption Information?

AV Preeminent Texas lawyer Paul Saputo provides the current law defining Fraudulent Use, Possession, or Tampering with Gift Card, Gift Card Packaging, or Gift Card Data or Redemption Information in Penal Code Section §32.56, as follows:^[1]

(b) A person commits an offense if the person, with the intent to harm or defraud another:

(1) acquires or retains possession of a gift card, a digital imprint, or gift card redemption information without the consent of the cardholder, card issuer, or gift card seller;

(2) alters or tampers with a gift card or gift card packaging;

(3) possesses, transports, uses, or attempts to use a gift card, a digital imprint, or gift card redemption information to obtain goods, services, or anything else of value with knowledge that the gift card is a counterfeit gift card or that the gift card, digital imprint, or gift card redemption information has been obtained in violation of Subdivision (1); or

(4) transports an unactivated gift card into a retail location that sells gift cards and places or attempts to place the gift card on a gift card rack, kiosk, or other display in a manner that would entice the public to purchase the gift card.

Key defined terms include:

• “Gift card” — “a card, code, or device that is issued to a consumer on a prepaid basis in a specified amount and redeemable upon presentation for the purchase of goods or services and that is either activated or inactivated.”^[2]
• “Digital imprint” — “the digital data placed on a gift card’s magnetic strip or chip.”^[3]
• “Gift card redemption information” — “information unique to each gift card that allows the cardholder to access, transfer, or spend funds on the gift card.”^[4]
• “Counterfeit gift card” — “a gift card that: (A) purports on the front or back of the card to have been issued by an issuer that did not issue the card; (B) has been altered to contain a digital imprint other than that which was placed on the card by the issuer; (C) contains a digital imprint with account or other information differing from that which is printed or embossed on the card by the issuer; or (D) has been altered to change the account or other information, including an image or code, on the front or back of the card from that which was printed or embossed on the card by the issuer.”^[5]

Possessing three or more cards or card-data items creates a rebuttable presumption of lack of consent, but that presumption does not apply to legitimate businesses or government entities acting lawfully.^[6]

If the same conduct violates another law, the state may prosecute under either or both statutes.^[7]

This law takes effect September 1, 2025. Conduct before that date is governed by prior law; conduct on or after that date is governed by this new statute.^[8]

What is the penalty for a Texas Fraudulent Use, Possession, or Tampering with Gift Card offense?

Penalties are based on the number of unactivated gift cards, counterfeit gift cards, or digital imprints or gift card redemption information of gift cards involved:^[9]

• State jail felony if fewer than five items are involved.
• Third degree felony if five or more but fewer than ten items are involved.
• Second degree felony if ten or more but fewer than fifty items are involved.
• First degree felony if fifty or more items are involved.

How can I be charged with a Fraudulent Use, Possession, or Tampering with Gift Card offense in Texas?

You can be charged with Fraudulent Use, Possession, or Tampering with Gift Card in Texas if the state’s attorneys believe that each of the elements of §32.56(b), as described in the section above, have been met.

What is the statute of limitations for Fraudulent Use, Possession, or Tampering with Gift Card in Texas?

Fraudulent Use, Possession, or Tampering with Gift Card has a seven year limitations period under Texas law.^[10]

Can you get probation for Fraudulent Use, Possession, or Tampering with Gift Card in Texas?

The Texas Code of Criminal Procedure allows both judges and juries to grant probation for Fraudulent Use, Possession, or Tampering with Gift Card, and judges are also allowed to accept deferred adjudication plea deals.^[11]

Note, however, that 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.^[12]

What level of crime is Fraudulent Use, Possession, or Tampering with Gift Card in Texas?

The Penal Code classifies the punishment for Fraudulent Use, Possession, or Tampering with Gift Card, Gift Card Packaging, or Gift Card Data or Redemption Information as a felony that ranges from a state jail felony to a first degree felony, depending on the number of items involved.

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

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Legal References:

^1. Texas Penal Code §32.56. This law is current as of 2025.^2. Texas Penal Code §32.56(a)(5)^3. Texas Penal Code §32.56(a)(4)^4. Texas Penal Code §32.56(a)(6)^5. Texas Penal Code §32.56(a)(3)^6. Texas Penal Code §32.56(c), (d)^7. Texas Penal Code §32.56(f)^8. SB 1809, 89th Legislature (RS), Section 1^9. Texas Penal Code §32.56(e)(1)–(4)^10. See Code of Criminal Procedure §12.01(3)(A)^11. See Chapter 42A, Texas Code of Criminal Procedure, Art. 42A.054, Art. 42A.056, Art. 42A.102^12. Art. 42A.054(b), Texas Code of Criminal Procedure