Beware Of Using A Debit Card To Rent A Car

July 30, 2019

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From time to time you may find yourself searching to rent a car and it may have been a long time since you've done it. But the items needed are the same; you must be at least 25-years old, have a valid Florida license and have a credit card.  However the major car rental companies, including Avis, Budget, Enterprise and Hertz, all permit rentals on a debit card instead of a credit card.  While this may offer convenience for many travelers, but it comes at a price that you should fully understand if you are using your debit card. Regardless if you use a credit or debit card, the rental company will take a pre-authorized deposit if you’re paying by credit card to cover estimated charges, including a full tank of gas. The deposit will be released when the car is returned and the final payment calculated, but it could take as long as 30 days for customers to see that deposit amount back in their account. That means if you are using a debit card, you must have the available funds to cover the deposit and car rental that will be placed on hold for nearly a month. SO you will need double the estimated amount of your rental in your bank account before you get to the rental counter. So it may be a smarter move for you to indeed use a credit card so you can access to your cash.  Plus, if you reserve a car with your credit card, that hold will be released after you return the car without impacting the actual amount of money you have. And some major travel insurance perks. Some only offer secondary insurance for car rentals, which covers anything left over after filing a claim with your regular car insurance company. Others offer primary insurance, meaning you can skip the upcharge at the rental counter and rely on your credit card’s benefits for coverage. It’s common that credit cards only cover collision, not liability and many rental companies will ask to see proof of your card’s coverage when you pick up the car. But if you pay with a debit card, you won’t have any chance at getting your coverage for free.

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SOURCE: Two Cents

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