Which of the following best defines cardholder fraud?

Cardholder fraud is best defined as obtaining a credit card using fake or misleading information. This form of fraud typically involves an individual using deceitful tactics to secure a credit card, which usually includes providing false identification or misrepresenting financial information to a card issuer. This definition encompasses actions such as identity theft or application fraud, where the fraudster takes advantage of the credit system by presenting inaccuracies in order to gain access to credit lines that do not rightfully belong to them.

The other options describe scenarios that do not align with the concept of fraud. For instance, using someone else's credit card with permission or allowing someone else to use a card legitimately involves consent, and thus, wouldn't be categorized as fraud. Using a credit card only at authorized vendors does not relate to fraudulent activity, rather it indicates compliance with valid card usage policies.