What is the definition of Credit Card Fraud?

The definition of credit card fraud centers around the misuse or unauthorized use of a cardholder's information or card. When considering the provided options, the most accurate representation of credit card fraud is framed by the idea that it involves the misuse of a cardholder's information – typically without their consent or knowledge.

The first choice depicts credit card fraud as the situation where a cardholder's information is misused, which encompasses a broad range of activities involving unauthorized transactions. This includes scenarios such as someone acquiring a cardholder's details through theft or phishing and then making purchases without the cardholder's permission.

While option C relates to fraud committed by a merchant, it does not encapsulate the broader context of what constitutes credit card fraud, which is predominantly focused on the unauthorized use of information pertaining to the cardholder rather than the actions of the merchant. Thus, the overall definition of credit card fraud is better represented by the first choice, as it directly refers to the violation of a cardholder's trust and the illegitimate use of their credit card data.

This clarity in the definition helps in recognizing the characteristics of credit card fraud, which can arise from various situations, including data breaches, identity theft, and improperly secured payment transactions.