Renting a Car - Debit Card vs Credit Card

Credit Identification is required by every car rental company. You
must show that you are financially responsible for the vehicle that
you rent. Some companies only take major charge or credit cards, and
some take debit cards. Some companies have a cash qualification card
that you can apply for, but this process usually takes about 4 - 6
weeks to process. If approved, you would be issued a cash rental ID
card and be able to rent with that particular company any time, using
cash.

Let’s start with the car rental company’s definition of a charge or
credit card and a debit card.

A major charge card or credit card is one for which you receive a
monthly statement and that is not tied in any way to your bank
account. Common credit cards that are accepted would be American
Express, Visa, MasterCard, Discover and Diners Club.

A debit card (even those with a Visa or MasterCard Logo) is credit
covered by your checking account. Your funds are limited to the
amount in your account. Any amount you charge with this card is
automatically debited from your bank account.

Many car rental companies do not accept debit cards because your
financial responsibility for the vehicle would be limited to the
amount of money in your bank account.

Many people do not know that a rental company can charge your credit
card even beyond your credit limit. For example, if you didn't take
the car rental insurance, and wrecked the vehicle, the rental company
would, and can, charge the full amount of the vehicle to your credit
card! You can imagine the nightmare of trying to pay that balance
off!!

With a debit card the rental company has no way to recoup charges like
this. For them it would be the same as you handing them a check for
the rental costs and then trusting that you would bring the car back
in one piece and on time, full of gas!

If a car rental company accepts your debit card make sure to check
about any additional information that would be required. Most
companies that accept a debit card will also require a credit check at
the rental counter and more of a deposit than they require with a
regular charge card. Call your rental location directly for
information on what the credit check entails. There may also be age
restrictions even if the company accepts debit cards.

Note: For most car rental companies, renters under 25 years of age
may not use a debit card as Credit Identification at the beginning of
the rental. Also, even if a location will accept a debit card from the
renter, they may not allow an additional driver to use this type of
credit card./em

Some car rental locations do not accept debit cards at time of rental
to release the vehicle, but do accept debit cards for payment when you
return the vehicle.

A prepaid debit card is a one-time use, or reloadable card. You may
receive this from your tax return or as a reward or “gift card”.
These types of debit cards will not be accepted as credit
identification. You should check with the rental car company to see
if this type of card would be accepted as a method of payment at the
end of the rental.

Deposits or Holds at the beginning of the rental

When you pick up your rental, you will be required to leave a deposit
on your credit card (or debit card if accepted). Generally, at the
time of rental, rental agencies will require a credit card hold of at
least the total estimated charges. Your deposit type and amount will
vary according to the company you rent from and the individual
location.

You must have the deposit amount required available on your card.
This amount will be held or frozen until the rental is returned. When
you return of the car, all holds will be released, and the actual cost
of the rental will be charged, or you may pay in cash.

Note: your bank may take up to two weeks to post the released
credit holds.

Giving your credit car number when making a Reservation
The majority of rental companies do not require that you give your
credit card number when you are booking a reservation.

Most of the time! There are some exceptions.

Credit card information is sometimes required when booking a specialty
vehicle (example: 12 passenger van) or a high demand vehicle during a
peak rental season (example: renting a minivan in July or August). If
a credit card is required to book a vehicle, then you should check to
see what the cancellation policy is and if there is a no-show
fee.
Also, if you book a prepaid reservation through Hotwire or Priceline,
you will have to give your credit card information because you will be
paying for the rental up-front.

Carefully read the terms and conditions for these sites. You are
often able to get a cheaper rate, but they are non-cancellable, non-
modifiable and non-refundable.

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