Do you need a credit card to rent a car?

Updated on February 17, 2025 - You can choose a rental car from us and pay with a credit card or a debit card. So why do you need a credit card when you pick up the rental car? It’s a question we get asked a lot, and we’ll explain below why you need a credit card to rent a car.

Here are the key points:

• The credit card used for the security deposit must be in the name of the primary driver of the rental car.

• Make sure you have a sufficiently high credit limit on your credit card when you pick up the rental car.

• In many cases, the credit card must be a Visa or Mastercard; American Express and other payment cards are not accepted everywhere. Be sure to carefully review the rental terms and conditions.

• It may take up to 20 business days to receive a full refund of your security deposit.

• The credit card must be valid for at least the next 6 months.

Security and Convenience

Cars are valuable assets, and this is especially true for rental cars, as rental companies typically maintain a relatively new fleet. A car rental company naturally wants to ensure that the cars are returned and that any additional costs are covered. This includes not only damage but also, for example, traffic fines. Even if you rent a car with comprehensive insurance, the rental company wants some assurance. Furthermore, most insurance policies have a deductible. That’s why the rental company places a hold (the security deposit) on your credit card. That amount is released once you return the rental car on time and the vehicle has not sustained any damage during the rental period.

Which credit card?

Credit cards from major providers like Visa and MasterCard are accepted everywhere, but cards from providers such as Amex and Diners aren’t always accepted. When you book a rental car with us, the terms and conditions will specify which credit cards that particular rental company accepts.

The credit card must be in the name of the primary driver, as they are liable for any damage to the rental car or other costs. So even if you’ve chosen a car with an “additional driver,” the credit card cannot be in that second driver’s name. Do not take this lightly. “A credit card is a credit card, right?” No, not when it comes to car rentals. If you can’t present a credit card in the name of the primary driver, you won’t be able to pick up the rental car—but you’ll still have to pay the full rental fee, because the rental company will record you as a “no-show.” Also important: when booking a rental car, make sure to use the name listed on your passport as the primary driver. That name must also appear on your credit card.

Always bring your physical credit card with you. Virtual credit cards or prepaid credit cards are not accepted. Many people don’t know (or have forgotten) their credit card PIN, since you almost never need it. But when picking up your rental car, the rental company will often ask for it. Not always, but make sure you know the PIN or can look it up.

How much will be charged?

Initially: nothing. Most car rental companies place a hold on your credit card. While that held amount is no longer available, it’s usually not actually charged. However, this does reduce your available credit limit.

The amount of the deposit depends on many different factors. First and foremost, of course, is the rental car itself: a Fiat Panda isn’t worth as much as a BMW 5 Series. Most people opt for insurance against damage to a rental car, but the amount of the deductible can vary widely. Furthermore, the security deposit depends on the rental company, the fuel policy, the country where you’re renting the car, and any extras you’ve selected, such as child seats or a GPS. Once you’ve selected a car in our search system, you’ll see how much the security deposit is for that specific rental car. That amount is also listed in the terms and conditions you’ll receive by email after booking.

By the way, for most destinations, you can filter the results in our system by the amount of the security deposit. If this option is available, you’ll see it in the list of filters.

Credit Card Limit

All credit cards have a limit, also known as your credit limit. This is the maximum amount you’re allowed to spend using your credit card; in many cases, it’s 2,500 or 5,000 euros. The security deposit reserved by the car rental company is deducted from this amount. So be sure to check the terms and conditions to see how much the security deposit is and verify that your credit limit is sufficient to cover it. Don’t forget that you’ll likely want to use your credit card to make purchases during your vacation. If you find yourself running a bit low on credit, you may be able to increase your credit limit. Most banks allow you to do this through their app, online banking, or by visiting a branch. Increasing your credit card limit can be temporary or permanent, but it does depend on your income and payment history.

What about a rental car with the Worry-Free label?

You might be wondering exactly what our Worry-Free label entails. Doesn’t it promise a worry-free car rental? And don’t cars with the Worry-Free label have no deductible or a deductible covered by EasyTerra? So why do you still have to pay a security deposit?

First, most of our customers choose the Worry-Free package, where we cover the deductible. This means you pay a security deposit on-site, and the rental company will charge your credit card if you happen to cause damage. We’ll refund this amount to you later, but the rental company isn’t involved in that process.

You can also choose to have no deductible at all. However, you’ll often still have to pay a security deposit on the spot, albeit a much lower one. This deposit also serves as a guarantee for things like traffic fines and fuel. If you return the rental car with an empty tank, even though the fuel policy is “full to full,” the rental company will naturally expect reimbursement. And if you receive a traffic ticket during the rental period, you’ll obviously have to pay for that yourself. Any extras, such as a child seat or GPS, are also covered by that security deposit. Furthermore, damage to the windows, wheels, roof, and undercarriage of the car is not covered by standard insurance. You can, however, purchase supplemental insurance to cover these items.

Why You Can’t Pay the Rental Car Deposit with a Debit Card

As we mentioned above, a car rental company places a hold on the primary driver’s credit card for the security deposit, and that amount is released once you return the rental car without any issues. With a debit card, it’s not possible to place a hold on and then release a sum of money. You could pay the entire security deposit with a debit card, but the amount would then actually be deducted from your account. And if you return the car without any issues, the rental company would have to refund that amount. That creates administrative hassle (and therefore costs!), which isn’t in anyone’s best interest.

Two credit cards for renting a car?

In some cases, a car rental company will ask for two credit cards. This is often the case when you rent a luxury car or a car from a special category. Don’t think of rental cars that are just a bit more luxurious than average, but rather cars from the highest segment. There’s no question that these cars are significantly more expensive, so the rental company wants extra assurance that the driver is reliable and will treat the car with care. For this reason, renting such luxury cars often requires a higher minimum age, and it’s impossible to rent one if you’re younger than 27, for example. If a rental company requests two credit cards, both must be in the name of the primary driver. A second credit card provides the rental company with additional assurance that the renter is creditworthy. Note that the security deposit amount is only held on one credit card.

Whether two credit cards are required is specified in the rental terms and conditions, which you should, of course, always read through before finalizing your rental car reservation. Look for the phrase: “Multiple credit cards required.” The terms and conditions will also indicate whether a different age limit applies to renting a luxury car.

Credit Card: Insured Payment

Don’t forget that all credit card payments are insured. If you have a dispute over a payment or additional charges, the credit card company can help you get your money back.

When will you get your deposit back?
If you return the rental car without any issues, you obviously won’t have to pay anything, and the deposit amount will be released. But this doesn’t happen immediately. How long it takes for the “hold” to be lifted depends not only on the rental company but also on the credit card issuer. The security deposit hold is released within a few days, but it can take up to 20 days before the bank or credit card company reflects this in your account and you have access to that amount again.