Credit Card Hold During Car Rental: How It Works and How to Avoid It
1. What is a Credit Card Hold?
A credit card hold is when the rental company places a temporary "hold" or reservation on a certain amount of money from the renter’s credit card. This hold acts as a security deposit and is not an actual charge. Once the rental period is over and no issues occur, the hold is released.
2. How Much Is the Hold Amount?
Rental companies usually apply different hold amounts depending on the type of vehicle and the rental period. The hold amount can include the rental cost as well as additional charges like a deposit. It can be several times the daily rental rate, which could tie up a significant portion of your credit limit.
3. When Is the Hold Released?
The credit card hold is typically released after the vehicle is returned and no additional charges are incurred. However, in some cases, this hold may take several days or even weeks to be released. This can vary depending on the rental company’s policies.
4. Effects of the Hold and How to Avoid It
A credit card hold can be a serious issue for renters, especially for those with low credit limits, as it may restrict the available balance. Fortunately, there are strategies to avoid or minimize the impact of the hold.
- Alternative Payment Methods: Many rental companies accept payment by cash or debit cards instead of credit cards. In this case, the hold risk is eliminated.
- Calculate in Advance: To avoid exceeding your credit card limit, calculate the expected rental charges and hold amounts beforehand.
- Consider Full Insurance Options: Comprehensive insurance can help reduce or eliminate the hold amount in case of damage to the vehicle.
5. Credit Card Hold and Car Return
The credit card hold is typically applied when you pick up the car. This process occurs right after the vehicle is taken, and the hold is released once the car is returned and inspected by the rental company. However, in some cases, charges on your card may appear days after the return.
6. Checks to Make Before Renting a Car
Before renting a car, it’s essential to gather detailed information about the credit card hold. Contact the rental company to clarify the hold amount and how long it will take to release it. Also, understanding the rental company’s insurance and payment options can be very helpful.
A credit card hold is a common practice during the car rental process. Therefore, knowing how it works and how to avoid it will help ensure a smooth rental experience. At Matcar Rental, we strive to offer the best service and the most hassle-free rental experience! 🚗
