Car Rental Company Rules In The Use Of Credit Cards

Posted by on June 8, 2012 | No Comments

Car rental firms would invariably ask for payment through a major credit card whenever your rent a car even if you are prepared to pay in cash. Yours would not be an isolated case because this rule applies to all car rental transactions as demanded by the car rental firms.

Asking for your credit card information is purely routine, what is not is the request for a credit card authorization and advance charge approval as security in the event of partial loss or damage to the car while it is on lease. The credit card therefore serves as a security deposit to cover expenses due to loss or damage.

If you turn back the car in perfect condition, nothing will be charged to your credit card except for the rental fee. If on the other hand there is loss or damage to the car, then the car rental company is deemed authorized to charge your credit card with the costs thereof according to the terms and condition of the rental.

The credit card authorization is a conditional term so there are no actual charges against your credit card at the time of the rental agreement.

However, by obtaining an advance charge approval, the rental car company in essence reserves a certain amount of room on your card for charges they might have to make in the event the car is damaged while in your possession.

Keep in mind that all plastic is not created equal. The differences between a credit card, a check card and a debit card will be evident when you are renting car. Many car rental companies will not accept check cards or debit cards for rental car security deposits. The reason is simple and straightforward – the car rental companies cannot demand charge approvals in debit or check cards so they are left uncovered in case of damage to the rented car.

Part of the car rental agreement that you will have to agree to is for you to give permission or authority to the car rental firm to charge your card the cost of loss or damage that they car may suffer while in your possession. Your credit card therefore should be able to accommodate the required amount needed to satisfy the security deposit against loss or damage to the car.

Just to make the records straight, the car rental companies have rules for the acceptance of credit card. The ability to produce a major credit card is not enough. The credit card must be issued to you. The reason is that you will be the party in the rental agreement as the authorized driver, and your presence as the credit card holder is required in the execution of the rental agreement. The person who will rent the car is therefore not allowed to use a credit card belonging to another person.

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