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It could mean that it is being used by a person who does not have permission to use it (it was stolen) or it could mean that it is being used to purchase goods or services that are prohibited by the contract.

Say that my company card comes with the specific limitation that I cannot buy booze with it and I do. I would be in violation of the contract because that is unauthorized use.

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Q: What does unauthorized use mean for a credit card?
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