Credit Card Needed for Car Rentals
A debit card alone might not secure your next car rental…
Using a debit card for most purchases is as easy as using a credit card and is often considered interchangable. However, not in the case of car rentals. With the customer driving away with a car typically valued at $15,000 and above, car rental companies are taking a great risk. A credit card by American Express, Discover, Visa or MasterCard is often required to secure against theft, even if you plan to pay the bill with a debit card.
A ‘holding’ or authorization fee may be applied to a car rental whether you use a credit or a debit card. The estimated amount of the rental, usually between $300 and $500, will be put on the card but not finalized, thus holding those funds to cover the rental payment, if necessary. Upon returning the car, the charges of the actual transaction will be processed and any unused funds will be returned, which may take up to two weeks.
If you are using one card for the authorization and another to make the actual payment on return of the car, be sure to have the rental company remove the hold. Once again, it may take some time for it to be removed by the credit card company. It’s a good idea to check with your bank ahead of time to make sure that there are no daily spending limits that may cause problems when the car rental company places funds on hold.
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