Texas Penal Code - PENAL § 32.35. Credit Card Transaction Record Laundering

(a) In this section:

(1) “Agent” means a person authorized to act on behalf of another and includes an employee.

(2) “Authorized vendor” means a person authorized by a creditor to furnish property, service, or anything else of value upon presentation of a credit card by a cardholder.

(3) “Cardholder” means 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) “Credit card” means 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) “Creditor” means 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.

(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.

(d) It is presumed that a person is not the agent of an authorized vendor if a fee is paid or offered to be paid by the person to the authorized vendor in connection with the vendor's presentment to a creditor of a credit card transaction record.

(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.


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