I’m not a parent so I don’t have much to offer in the discipline advice, but I wanted to weigh in on the police thing.
I would not file a police report except as an absolute desperate last resort.
I’m not sure where you are, so I don’t know how these things work in your area, but here the police won’t give kids ‘a talking to’ for two reasons - because they want kids to feel the police are people who can help in an emergency and not be a threat, and because if they did this they would spend all of their time telling off naughty children.
In the UK, if you file a crime report, the police are duty bound to investigate. That means your daughter would be arrested and put in a cell, have photos and fingerprints taken, and be interviewed on tape. You would not be able to be with her for this, because you are a prosecution witness. She would have to have another responsible adult with her, like an aunty or a social worker. This is frightening stuff for a kid.
If she admitted it, she would probably get a caution. That’s a criminal record. If she denies it, it could potentially go to trial and you could be called to give evidence against her. She would probably only get a mild sentence (I can’t remember if they can give community service to someone her age, but she might get a ‘rehabilitation order’). Yes this might straighten her out, but do you really want her to have that on her record?
Chances are a caution for theft at 12 won’t hold her back majorly in life, but if she goes into a competitive field of work and study…
(On a side note, the credit card thing is technically fraud and is a more serious crime, and as someone has said, it is technically a crime against the card company and might be taken out of your hands)
Obviously only you know whether it has got to this stage to warrant making a police report. I just want to make sure you know what that will involve. I work in that field and I would be extremely reluctant to do this.
Sorry to be all doom and gloom. I wish I had some constructive advice to give.