Renting a car can be an exciting experience, especially when you’re traveling to a new destination or need a reliable vehicle for a short period. However, the process of renting a car can be overwhelming, especially when it comes to understanding the various fees and charges involved. One of the most common questions that car renters ask is how much does car rental hold on credit card? In this article, we’ll delve into the world of car rental holds, explaining what they are, how they work, and what you need to know to avoid any surprises.
What is a Car Rental Hold?
A car rental hold, also known as a credit card hold or authorization hold, is a temporary hold placed on your credit card account by the car rental company when you reserve a vehicle. This hold is usually equal to the estimated total cost of the rental, including taxes, fees, and any additional charges. The hold is typically placed on your credit card account when you make the reservation, and it’s usually released once the rental period is over and the vehicle is returned.
Why Do Car Rental Companies Place a Hold?
Car rental companies place a hold on your credit card account for several reasons:
- To ensure that you have sufficient funds available to cover the cost of the rental
- To prevent fraud and ensure that the rental is legitimate
- To protect against any additional charges or damages that may occur during the rental period
How Much Does Car Rental Hold on Credit Card?
The amount of the car rental hold on your credit card can vary depending on several factors, including:
Vehicle Type and Rental Period
The type of vehicle you’re renting and the length of the rental period can significantly impact the amount of the hold. For example:
| Vehicle Type | Rental Period | Hold Amount |
|---|---|---|
| Economy Car | 1-3 days | $200-$500 |
| SUV | 3-7 days | $500-$1,000 |
| Luxury Car | 7-14 days | $1,000-$2,000 |
Additional Fees and Charges
In addition to the vehicle type and rental period, other factors can impact the amount of the hold, including: (See Also: Do Rental Cars Get Cheaper Last Minute? Secrets Revealed)
- Taxes and fees: These can range from 10% to 20% of the total rental cost
- Additional drivers: Each additional driver may require an additional hold
- Insurance and protection packages: These may require an additional hold
- Fuel and mileage charges: These may be added to the hold if you don’t return the vehicle with a full tank of gas or exceed the mileage limit
What Happens to the Hold After the Rental?
After the rental period is over, the car rental company will release the hold on your credit card account. However, it may take a few days for the hold to be released, depending on the company’s policies and your credit card issuer’s processing times. During this time, you may not be able to use the funds held on your credit card account for other transactions.
How to Avoid or Minimize the Hold
If you’re concerned about the hold on your credit card account, there are several steps you can take to avoid or minimize it:
Use a Credit Card with a High Credit Limit
If you have a credit card with a high credit limit, you may be able to avoid the hold altogether. This is because the credit card company may not need to place a hold on your account if you have sufficient available credit.
Choose a Car Rental Company with a Lower Hold Amount
Some car rental companies may have lower hold amounts than others. Research the company’s policies and fees before making a reservation to ensure you understand the hold amount.
Consider a Debit Card or Cash Deposit
If you’re concerned about the hold on your credit card account, you may want to consider using a debit card or making a cash deposit instead. This can help you avoid the hold altogether and ensure that you have access to your funds during the rental period. (See Also: Why Are Car Rentals So Expensive in Seattle? Uncovered)
Conclusion
In conclusion, the amount of the car rental hold on your credit card can vary depending on several factors, including the vehicle type, rental period, and additional fees and charges. By understanding how the hold works and taking steps to avoid or minimize it, you can ensure a smooth and stress-free car rental experience. Remember to research the car rental company’s policies and fees before making a reservation, and consider using a credit card with a high credit limit or a debit card or cash deposit instead.
Frequently Asked Questions
Q: How long does the hold on my credit card account last?
A: The hold on your credit card account typically lasts for 7-14 days after the rental period is over. However, this can vary depending on the car rental company’s policies and your credit card issuer’s processing times.
Q: Can I avoid the hold on my credit card account?
A: Yes, you can avoid the hold on your credit card account by using a credit card with a high credit limit, choosing a car rental company with a lower hold amount, or using a debit card or making a cash deposit instead.
Q: What happens if I return the vehicle with damage or exceed the mileage limit?
A: If you return the vehicle with damage or exceed the mileage limit, the car rental company may charge you additional fees. These fees will be added to the hold on your credit card account, and you will be responsible for paying them. (See Also: How Many Rental Cars In The Us? Industry Insights Revealed)
Q: Can I use my credit card for other transactions while the hold is in place?
A: No, you may not be able to use your credit card for other transactions while the hold is in place. The hold will temporarily freeze the available credit on your account, and you will not be able to make any new purchases or transactions until the hold is released.
Q: Is the hold on my credit card account refundable?
A: Yes, the hold on your credit card account is typically refundable once the rental period is over and the vehicle is returned. However, this can vary depending on the car rental company’s policies and your credit card issuer’s processing times.