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*Updated for 2025*

When renting a car, a security deposit is taken on the main driver’s credit card. In some rare instances it can be taken on a debit card. The deposit is usually ring-fenced with a pre-authorised payment where the money is held but does not actually leave the account. In other cases, the money will be debited out of the account and returned after the rental finishes providing there is no damage to the vehicle (this is especially the case when rentals exceed 14 days).

Sometimes there may be external charges or deductions that may affect your security deposit upon return. Unfortunately, these are out of our control and will be caused by fluctuations in exchange rates or credit card T&Cs. Continue reading to find out how credit card transaction fees and exchange rates affect your car hire.

Using credit card to pay for car rental

International transaction fees

Depending on the credit card you are using, you may incur an international transaction fee. It’s worth checking the terms and conditions of your credit card before travelling. Some banks will offer credit cards with no foreign transaction fees, read up on travel credit cards to explore your options.

Exchange rate adjustments

Some car rental providers will take a security deposit in the local currency, this means that the present exchange rate will be used to convert the local security deposit at the time of the transaction. By the end of your rental and the return of your deposit, this exchange rate may have altered. Negative changes in the exchange rate can lead to you potentially losing a small amount of your security deposit when the deposit is returned.

Your security deposit will be displayed on your car rental quote in the local currency that it will be taken in.

Security deposit box

Why do I need a security deposit?

Security deposits are a straightforward way for car hire providers to protect themselves during a rental. The main purpose of a security deposit is to:

  • Ensure the safe return of the vehicle
  • Protect the provider if any traffic violations or toll charges are imposed on the vehicle
  • Pay for the damage of any uninsured parts of the vehicle 

Our car rental providers will mostly only accept this on a credit card in the main driver’s name. For more information, read our blog on car hire security deposits explained

Rent a car with Zest

Unlike some unreputable car rental brokers, we’re always upfront about any additional costs or local charges that may occur during your rental. Our customer support team is always here to help with any questions or issues you may have about car rental. Get in touch if you’re still confused about how credit card transaction fees and exchange rates affect your car hire.


Jake

About the author: Jake

Jake loves to dream of his next adventure, whether that's sunny beaches, snowy escapes, or finding hidden gems in popular locations, he's all about the love of travel!

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