drbond, every business card application that I have read requires the applicant to agree to use the card "for business purposes". If one has no business, is this also fraud? Do card issuers actually care or check? Some applications caution that business cards are excluded from some consumer protections, but I have not seen specifics. Anyone know?
It would be fraud. However, it is not covered under any criminal statute and would not carry any criminal penalty. It would however be a violation of the cardholder agreement and subject to cancellation or any other action available to the issuer. It could be prosecuted civilly as breach of contract.
OPINION: I don't know of any card issuers that actively search out non business users and I doubt that they do. But that could change at any time. There have been instances where cards have been cancelled due to improper usage or violation of cardholder agreement. This has been a result of claimed chargebacks or other loss of revenue for the issuer or high service maintenance.
A business cannot use a lack of understanding for a defense or a three day waiting period in most states if not all. Card issuers do not allow all chargeback codes on business cards and some do not allow any. There is a long list of things associated with personal cards that do not apply to business cards.
I hope you find this of some interest.