How will the car hire company handle my security deposit?
When will my car hire security deposit be refunded?
When you hire a car, you are usually asked to leave a security deposit. This may be the same amount as your excess liability but often is a lower amount. You may also need to leave a fuel deposit too.
These deposits ensure that you will be able to cover fines that may be due such as for speeding and parking offences, or for toll road use picked up during your rental, and, also, if you are charged for damage you have caused to the vehicle. The fuel deposit is used should you return the car with insufficient fuel in the tank.
The big difference between a payment and a preauthorisation is that even when a preauthorisation is created or released, you will not see a transaction listed or get a notification of payment out of or into your account. Instead, the available balance on your account that you are able to spend will simply decrease or increase.
How is the security deposit taken?
If you have a credit card, the security deposit will be ‘pre-authorised’ on your card. This means that it is not debited – it will not show as a transaction on your account – but instead your available credit balance is reduced. This means you will not be able to max out your credit card during your hire and funds will still be available to the car hire company should they need to charge you.
If you are using a debit card, there are two ways in which the security deposit could be taken. If the debit card you possess allows it, the deposit may be preauthorised in the same way as the credit card. Again, reducing the funds you have available to spend but not showing as a transaction on your account. If pre-authorising is not enabled on your debit card, then the security deposit will be debited from your account and will show as a transaction on your bank statement.
When will the car hire company refund my security deposit?
When you return the car, it will be checked for damage and fuel level. Any charges or fines will be deducted from your security deposit and the balance will then be due to you.
If you used a credit card, or have used a debit card that can be pre-authorised, this block will be removed on your return. As we mentioned above, you will not see a refund on your statement as the amount was not debited. You should just see your available balance increase although this can take up to 10 working days to appear.
If you used a debit card and the security deposit was charged to your account (when no pre-authorisation was possible), the car hire company will apply your refund when you return the car. It will take up to 30 days for this refund to reach your bank account. This is due to usual banking processes and nothing to do with either the car rental company or Clarify Car Hire
What if I don’t want to leave a security deposit on my car hire?
Leaving a large security deposit can be a barrier to car rental for some people. For those who want to use a debit card for their car rental it can be even more difficult as the funds will need to be available in the account for the security deposit to be taken and this can put a big dent on holiday spending! Clarify Car Hire can help you find car rental with no deposit in many locations around the world.
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