Rental car deposits with a credit card

Why the rental company wants a credit card

When you rent a car, most rental companies require a deposit as security – for damage, missing fuel, parking tickets, tolls or a late return. Instead of charging the amount, they have it reserved on your card. This reservation is called a pre-authorisation or hold (Vorautorisierung or Blockierung).

Rental companies prefer a genuine credit or charge card: the hold comes out of your credit line, and the cardholder's bank stands behind the amount. With a debit card, by contrast, real money in your current account is blocked – and if the balance later falls short, the rental company loses out. That is why many rental companies do not accept debit cards for the deposit at all, or only with conditions.

Which cards are accepted?

The type of card often decides whether you get the car at all:

How the pre-authorisation works

When you pick up the car, the rental company blocks a set deposit amount on your card. How much depends on the rental company, the vehicle class, the country and the insurance cover you choose – from a few hundred to over a thousand euros, and considerably more for premium vehicles. The amount is not charged, but it reduces your available limit for as long as the hold is in place.

After you return the car, the rental company releases the hold and only charges the actual costs. It can take anywhere from a few days to several weeks for the amount to reappear in your available limit – this depends on the rental company and your bank. If the release still has not appeared after around 30 days, ask the rental company for a confirmation and take it to your bank.

Credit cards with a credit line for the deposit

For renting a car abroad, the ideal card is a genuine credit or charge card with no foreign currency fee. The table shows the top-rated genuine credit cards in our comparison – all with a credit line and therefore suitable for the deposit. Switch them to full repayment: the APR only applies if you pay off the statement in instalments.

What to check before you rent

These points decide whether the handover at the counter goes smoothly:

• The card must be in the name of the main driver, who has to be there at pick-up
• You need the physical card – a purely virtual card on your smartphone is usually not accepted for the deposit
• Your available credit limit must cover both the deposit and your travel spending; with new cards, the limit is often still low
• Check the rental terms in advance to see which cards the branch accepts and how high the deposit is
• Get the rental company's approval before driving to other countries

Excess and insurance

The deposit is not the same as the excess (Selbstbeteiligung), but the two are often linked: if there is damage, you pay up to the agreed excess, and the rental company can collect this amount from your card. With a rate that has no excess, the deposit is often lower too.

Some credit cards include rental car insurance that reimburses an excess you have paid – usually only if you paid for the rental car with that card. Before you take out expensive extra insurance at the counter, it is worth checking your card's insurance terms. Take photos of the car's condition at pick-up and return, and have any damage confirmed in the handover report (Übergabeprotokoll).

Foreign currency and conversion

If you rent outside the eurozone, both the deposit and the final bill are charged in the local currency – the deposit as a hold, the bill as an actual charge. Your card's foreign currency fee applies to the amounts actually charged. Because the hold and the release can be converted at different exchange rates, the euro amount released may differ slightly from the amount blocked.

If the terminal or the counter staff offer to bill you in euros, decline and choose the local currency. Converting into euros on the spot (Dynamic Currency Conversion) is almost always more expensive than your bank's rate.

Frequently asked questions about rental car deposits

Can I rent a car with a debit card?

Sometimes. Some rental companies accept debit cards, but often only with extra insurance, a higher deposit or for certain vehicle classes. The deposit is then blocked directly in your current account. Check the conditions when you book, and take a genuine credit card with you to be on the safe side.

How long does it take for the deposit to be released?

Usually a few days, sometimes several weeks. The rental company has to release the hold, and then your bank processes it. If the hold lasts unusually long, ask the rental company for a release confirmation and submit it to your bank.

Is the deposit charged to my card?

No, it is only reserved. At the end, only the actual costs are charged – such as the rental, refuelling, tolls or damage up to the excess.

Does the credit card have to be in my name?

Yes – almost always in the main driver's name. A partner's or parent's card is usually not accepted for the deposit, even if that person is travelling with you.