Yes. Credit-card fraud is a criminal offence in China under Article 196 of the Criminal Law, which covers using a forged card, using a card obtained with a false identity, using a void card, using another person’s card without permission, and “malicious overdraft.” A serious case carries up to five years’ imprisonment plus a fine, and the most serious cases carry ten years to life.
What the law says
Article 196 sets three tiers. For amounts of “relatively large” value, the penalty is up to five years’ imprisonment or criminal detention, plus a fine of RMB 20,000 to 200,000. For “huge” amounts or other serious circumstances, it is five to ten years plus a fine of RMB 50,000 to 500,000. For “especially huge” amounts or especially serious circumstances, it is ten years to life, with a fine or confiscation of property.
The thresholds come from the 2009 judicial interpretation as amended in 2018. Using a forged card, a card obtained with a false identity, a void card, or another person’s card is “relatively large” from RMB 5,000, “huge” from RMB 50,000 and “especially huge” from RMB 500,000. “Malicious overdraft” is treated differently: it becomes a crime from RMB 50,000, and it requires that the cardholder, with intent to keep the money, goes over the limit or past the due date and still fails to repay after the bank has made two effective collections more than three months earlier. The amount counted is the unpaid principal only — interest, late fees and charges are excluded.
Related conduct falls under Article 177-1, the crime of impairing credit-card management. It covers knowingly holding or transporting forged cards, illegally holding another person’s cards in large quantities, using a false identity to obtain a card, and buying or selling such cards. It carries up to three years, or three to ten years where the quantity is large.
What this means in practice
Banks reconstruct transactions quickly, and ATM and point-of-sale records make strong evidence. For a cardholder who falls behind, the key issue is often intent — whether you genuinely meant to repay. Simply missing a payment is not automatically a crime; the prosecution must prove intent and satisfy the collection requirement. If you are investigated, repaying the principal can materially reduce the exposure, and returning money and cooperating can lead to a lighter sentence.
A quick example
(Hypothetical) A foreign resident finds a wallet containing a bank card and uses it to withdraw RMB 30,000. That is “using another person’s card without permission” under Article 196; because the amount is above the RMB 5,000 line it is a criminal case, and it falls in the “relatively large” band carrying up to five years.
FAQ
Q: Is overdrawing a credit card a crime in China?
A: Not by itself. It is “malicious overdraft” only where the holder intends to keep the money, goes over the limit or past the due date, and fails to repay after two effective bank collections more than three months earlier.
Q: What is the threshold for credit-card fraud in China?
A: For using another person’s or a forged card, “relatively large” starts at RMB 5,000; for malicious overdraft it starts at RMB 50,000.
Q: What is the maximum penalty?
A: Ten years to life imprisonment, plus a fine or confiscation of property, for especially huge amounts.
Q: Does the amount include interest and late fees?
A: No. The interpretation counts the unpaid principal at the time the case is filed, excluding interest, late fees and charges.
Wang Guan | Co-founder, Beijing Haolue Law Firm | +86 17813108512