This is one of the most common questions our customers ask the Zest team – why do I need a credit card to hire a car and can I hire with a debit card? The easiest answer is ‘no’, but there’s a bit more to it than that. Below we explain why you need a credit card to hire a car and what happens if you don’t have one.
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Hiring a car with a credit card
It’s a standard request by all car hire providers that we work with that the main driver must present a credit card on collection of the vehicle. Holding a credit card is a quick form of proving that you’re a not a credit risk. Although all bookings with Zest include full Collision Damage and Theft Waiver (CDW) insurance with either no insurance excess or Excess Reimbursement Insurance (ERI), the provider needs some security. This can be a security deposit held on your credit card or allowing the provider to record the details, should they need to make extra charges. Primarily, they require security to ensure that you return the vehicle. It also covers extra charges that the provider may face because of loaning you the vehicle, such as driving infringements and damages.
I’ve taken out additional insurance, why do I still need a credit card?
Our recommended top-up insurance covers damage to the vehicle that CDW excludes. A third party arranges this insurance. This allows us to offer the cover to you at a lower cost than the product offered locally by providers. You may even have an annual policy which covers you. Therefore, the provider will be unaware of what insurance product you have in place and the extent of the cover. They still need the protection of knowing they can be reimbursed for any charges you incur.
What happens if I don’t have a credit card?
If the provider hasn’t agreed to release the vehicle to you with a debit card and this is the only form of payment you have on collection, there is no guarantee that they will allow you to take the vehicle. They may accept your debit card but insist you take their local insurance, which is often at a high cost, despite whatever other insurance you have in place. Alternatively, they will refuse to release the vehicle to you. In this instance, they will regard you as a ‘no show’ and charge you for the full rental period.
Should you find yourself on the way to collect your hire car and you discover you don’t have your credit card with you, contact us as soon as possible so we can liaise with the provider to try to resolve the issue. We can be called on 0333 336 1554 from within the UK or +44 1362 852288 from outside the UK. You can also send us a message online here.
Why can’t I hire a car with a debit card?
There are certain providers that may allow you to hire a car with a debit card. This is not guaranteed, however. Very few exceptions are made and they will assess your request on a case by case basis.
Providers will always prefer a credit card because the guarantee of their costs being covered are higher. With a debit card, you’re only financially covered with the actual money you have available. A credit card extends this.
A credit card allows a pre-authorisation block to be placed as a security deposit. This allows the amount to be held on your credit card rather than the money leaving your account. This service isn’t available with a debit card and so the money must be paid to the provider and then refunded. There are transaction fees involved with a debit card, and you may lose money should the currency exchange rate not go in your favour.
Remember: a credit card means a security deposit can be blocked and not actually debited from your account.
You should bear in mind that paying for anything with a credit card is a lot more secure than paying with a debit card. In the event of any extra charges under dispute, the credit company will be more willing to help you reclaim costs. Any payments with a credit card have additional insurance cover.
Top tip: hiring a car with a credit card is a lot safer for both you and the provider.
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Quick facts about why you need a credit card to hire a car
- Providers require a form of security before they release a hire vehicle to you to ensure additional costs they incur from your hire can be recovered.
- Having a credit card shows the provider that you’re not a financial risk.
- Credit cards offer better security for you and the provider.
- Credit cards allow a security deposit to be blocked, rather than it leaving your account.
- Failure to produce a credit card on collection at request of the provider can lead to you being refused the vehicle and you’ll be charged the full cost of hire as a ‘no show’.
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I fly to Asturias on 19th May for 2 weeks holiday, for which I need a car. Having read a lot of pretty damning reviews of available Car- Hire providers at Asturias I was relieved to come across your company, with your approach to looking after customers. However, the problem I now have is the lack of a credit card, the need for which I had not been aware.
I have contacted my bank today and my Credit Card application has been approved. My worry now is that delivery is quoted as 5 to 7 days (not sure whether all the weekend is discounted or just Sunday), which could be pretty tight for my leaving home before the Post on the 19th. Meanwhile I have no choice but to arrange the Car Hire in good time, for my holiday plans to go according to plan. I have a 2+ hour drive to my holiday venue after a 18.30 flight arrival.
I would be grateful for any helpful suggestions you may have.
Chris Rorke
Hi Chris,
Thanks for your comment. If you could let me know your booking reference number, our Reservations Team would be able to explain the situation to the supplier you’ve booked with to see if they will accept a debit card. If you’re yet to book your car hire, please call our Reservations Team on 01362 852288 and they will be able to advise you on who may accept a debit card.
Kind regards,
Jessica
Zest Car Rental
Hi
You may be aware of a practise out there where a credit card deposit is actually taken from your credit card account if you don’t take out local excess insurance, regardless of other excess insurance already in place. We fell foul of this last year with Dickmans Car Hire in Murcia.
The deposit actually left our credit card account and incurred currency exchange charges but not only that we had to wait 30 days to get this deposit refunded.
Fortunately the credit card accepted this was mal-practice and applied a chargeback claim and eventually I was reimbursed.
The stress, worry and inconvenience has made me very wary of hiring a car whilst away again. We usually go away twice a year and always hire a car so this will take some getting used to.
Is this common practice?
Thanks
Paul
Good afternoon,
Thank you for your comment. We are aware that some suppliers prefer to debit the security deposit. This has been caused by a number of factors, such as where some customers cancel their cards before damages can be paid for, leaving the suppliers out of pocket. Debiting the amount can also be more secure for the supplier for longer rentals where the pre-authorisation on the card may expire before the rental has finished.
Only a very small number of the suppliers we work with actually debit the amount and the ones that do, refund the amount immediately. We stopped working with Dickmanns in 2015 due to similar situations like the one you detail.
We encourage all our customers, should they experience a situation where they are experiencing a hard-sell approach to local insurance, to contact us immediately for assistance. We can then liaise with the supplier to resolve the issue.
Kind regards,
Jessica
Zest Car Rental