Can a business legally charge a credit card surcharge in 2026?

Credit card surcharging is legal under federal law and in the vast majority of U.S. states following Supreme Court First Amendment rulings (Expressions Hair Design v. Schneiderman). However, merchants must not exceed their actual processing cost (capped at 3% by card networks) and must provide clear point-of-sale disclosures.

Is surcharging debit cards allowed?

No. Federal law under the Durbin Amendment (Dodd-Frank Act) strictly prohibits merchants from imposing a surcharge on debit card transactions, even when the customer selects credit at checkout.

What is the difference between a cash discount and a surcharge?

A surcharge adds a fee to the posted regular price when paying by credit card. A cash discount offers a reduction from the regular posted price when paying with cash, checks, or debit. Cash discount programs are legal in all 50 states.

2026 U.S. Trustee Program Median Limits

Chapter 7 Bankruptcy Means Test Calculator

Official statutory calculation under 11 U.S.C. § 707(b)(2). Check your state median family income cutoff, allowable IRS expense deductions, and Chapter 7 vs Chapter 13 qualification.

Step 1: Household Income & State Median Comparison

State of Filing

Household Size

Average Monthly Gross Income ($)Annualized CMI: $81,600 / yr

Total Unsecured Debt ($)Credit cards, personal loans, medical bills.

Statutory Means Test Determination

✓ Presumed Eligible for Chapter 7 Discharge

$81,600 vs $110,250Below California median by $28,650

Part 1: Median TestPASSED (Auto-Qualify)

Estimated Disposable / Mo$0 (Not Required)

California Homestead Exemption$300,000 - $600,000 depending on county median

Confidential Debt Relief & Chapter 7 Legal Review

Need a Free Bankruptcy Attorney Consultation in California?

The Means Test allows numerous special circumstance deductions (such as high medical expenses, elderly care, and business debts) that can qualify above-median earners for Chapter 7. Speak with a local bankruptcy specialist.

Frequently Asked Questions

What is the Chapter 7 Bankruptcy Means Test?

The Chapter 7 Means Test (Form 122A-1 and 122A-2) is a statutory financial calculation established under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005. It determines whether your household income is low enough to qualify for Chapter 7 debt liquidation, or whether you have sufficient disposable income to repay creditors under Chapter 13.

How does the state median income test work?

In Part 1 of the Means Test, your annualized current monthly income (averaged over the last 6 full calendar months) is compared against the median family income for your state and household size published by the U.S. Trustee Program. If your income is at or below the median, you automatically pass and qualify for Chapter 7.

What happens if my income is above the state median?

If your income exceeds the state median, you must complete the secondary Means Test (Form 122A-2). This deducts IRS National and Local Standards for housing, food, transportation, taxes, and secured debt payments from your gross income. If your remaining monthly disposable income is below $160, you still pass.

Can I keep my home and car in Chapter 7 bankruptcy?

Yes, provided your equity does not exceed your states statutory bankruptcy exemptions (such as the homestead exemption and motor vehicle exemption), and you remain current on your monthly mortgage and car payments.