Why does the deposit work differently for rentals of 13 days or more?
When renting a car, many customers assume that the deposit is always processed in the same way regardless of the rental period. In practice, the way the deposit is handled may depend on the rental duration, bank card type, vehicle category and selected service package.
The difference between a shorter and longer rental period is especially important. For a rental of up to 12 days inclusive, the deposit on a credit card is usually processed as a pre-authorisation, which means the amount is temporarily blocked. For rentals of 13 days or more, the deposit may be actually charged to the card.
This does not mean that the deposit becomes an additional rental payment. It still remains a financial guarantee under the rental agreement. The transaction is simply processed differently. Apparently, the banking system decided human life needed one more concept that looks almost the same but works differently.
What is a car rental deposit?
A car rental deposit is a financial guarantee that the rental agreement conditions will be respected. It is not part of the rental price and does not mean that the customer is paying for possible damage in advance.
The deposit may be used to cover costs if expenses arise during the rental that, according to the agreement, are the customer’s responsibility.
For example, the deposit may be related to:
- vehicle damage;
- missing fuel;
- late return;
- excess mileage;
- fines;
- administrative fees;
- lost or damaged keys;
- damage to tyres or rims;
- breach of rental conditions;
- other costs provided for in the rental agreement.
If there are no additional costs after the vehicle is returned and the agreement can be closed without deductions, the deposit is either released or refunded depending on how it was originally processed.
Deposit and rental payment are not the same thing
One of the most common misunderstandings is treating the deposit as part of the rental price. These are two separate transactions.
Rental payment is the price paid for using the vehicle and any selected services.
The deposit is a financial guarantee connected with the rental agreement.
For example, a customer may pay the full rental price online in advance but still need to provide a deposit when collecting the vehicle. Likewise, providing the deposit does not mean that the rental itself has already been paid.
This is also why the card used to pay for the booking is not automatically suitable for the deposit. Deposit requirements are separate. One banking operation would apparently have been far too simple for everyone involved.
What happens for rentals of up to 12 days?
For a rental period of up to 12 days inclusive, the deposit on a credit card is usually processed as a pre-authorisation.
This means that the amount:
- is not transferred to the company as a normal payment;
- is temporarily reserved by the bank;
- becomes temporarily unavailable to the customer;
- may appear as pending, hold, pre-authorisation or blocked funds;
- should be released after the agreement is closed if there is no reason for a deduction.
For example, if a credit card has an available limit of €3,000 and a deposit of €1,150 is blocked, the available credit limit will temporarily fall to approximately €1,850.
The money is normally not transferred to the rental company as an ordinary payment. It is a temporary bank hold.
What changes from the 13th day?
For rentals of 13 days or more, the deposit may be processed not as a pre-authorisation but as an actual charge to the card.
This means that the deposit:
- is charged to the card;
- appears as a separate bank transaction;
- serves as a financial guarantee while the agreement remains active;
- is refunded as a separate transaction after the rental is closed, provided there are no deductions.
The main difference is that with a hold, the funds technically remain in the customer’s account but are temporarily unavailable. With an actual charge, the money leaves the account and a refund is processed after the rental.
From the customer’s point of view, the difference is fairly obvious. From the bank’s point of view, these are merely two technical terms that somehow nobody explains until someone starts nervously refreshing their banking app.
Why may the deposit be charged to the card?
For a longer rental period, the usual validity period of a pre-authorisation may not be sufficient for the entire rental. Bank holds have their own rules and time limits, which may depend on the bank, card type and payment system.
For that reason, during a long-term rental the deposit may be processed as an actual charge so that the financial guarantee remains valid throughout the rental agreement.
This is especially relevant when the vehicle is rented:
- for several weeks;
- for one month;
- for more than one month;
- with a later extension;
- under a long-term rental agreement.
The fact that the deposit is charged does not mean the company keeps it as rental payment. After the agreement is closed, the deposit is refunded subject to any possible deductions allowed under the rental conditions.
What happens when using a debit card?
With a debit card, the deposit normally works differently than with a credit card. If a debit card is accepted for the relevant vehicle category and selected package, the deposit is usually charged from the account.
This is because a debit card uses the customer’s own funds rather than a credit line provided by the bank.
When a debit card is used:
- the deposit is usually charged;
- the actual account balance decreases;
- a refund is initiated after the agreement is closed;
- the refund is then processed by the customer’s bank;
- the time until the money appears also depends on banking processing.
Debit cards are not accepted for every vehicle category or package. That is why the conditions of the specific rental should be checked before booking.
Credit card or debit card: what is the difference for the deposit?
A credit card uses a credit limit provided by the bank. A debit card uses money already available in the customer’s bank account.
For a rental deposit, this difference matters.
With a suitable credit card, the deposit may:
- be temporarily blocked;
- reduce the available credit limit;
- not appear as a final charge;
- simply be released after the agreement is closed.
With a debit card, the deposit is usually:
- charged from the available balance;
- shown as an actual transaction;
- refunded separately after the agreement is closed;
- processed by the bank for several business days in some cases.
In addition, some vehicle categories specifically require a physical credit card in the main driver’s name. For Select, a physical credit card in the main driver’s name is usually required. For Luxury Elite, two physical credit cards in the main driver’s name may be required.
Why can a charged deposit take longer to return?
If the deposit was only blocked, the rental company generally needs to initiate the release of the hold after the agreement is closed. The available balance or credit limit is then restored according to the bank’s procedures.
If the deposit was actually charged, the process is different. A separate refund transaction must be issued.
In this case, the operation may pass through several stages:
- vehicle return;
- vehicle condition inspection;
- fuel and mileage check;
- verification of additional costs;
- closing the rental agreement;
- initiating the refund;
- processing through the payment system;
- processing by the customer’s bank;
- crediting the funds to the account.
This is why a charged deposit cannot always return as quickly as a simple release of a temporary hold.
How does the refund work after the rental ends?
After the vehicle is returned, the rental agreement must be closed. Before this happens, the company checks whether the rental conditions were respected and whether there are any additional costs.
The following are usually checked:
- vehicle condition;
- new damage;
- fuel level;
- mileage;
- return time;
- keys;
- vehicle equipment and completeness;
- possible additional services;
- costs provided for by the agreement.
If everything is in order, the agreement is closed and the deposit release or refund procedure begins.
It is important to understand that the moment the vehicle is returned and the moment the money appears in the customer’s bank account are not the same event. Between them sits the banking system. And the banking system loves time, business days and a remarkable lack of concern for human impatience.
Why might the refund not appear as a separate incoming transaction?
If the deposit was processed as a hold, the customer may not see a separate transaction called “refund” after it is released.
This is because the rental company did not actually charge the money in the first place, so there is no new payment to send back.
Instead:
- the pre-authorisation is cancelled;
- the hold disappears;
- the available balance or credit limit increases;
- the original transaction may disappear or change status.
For this reason, when a bank hold is released, searching for a separate incoming payment does not always make sense.
If the deposit was actually charged, the refund is normally processed as a separate banking transaction, although the way it appears still depends on the specific bank.
How long does the deposit refund take?
The timing depends on whether the deposit was blocked or charged, when the agreement was closed, which bank issued the card, which payment system processes the transaction and how quickly the customer’s bank handles the refund.
With a normal pre-authorisation, the release of the hold may happen faster, although the exact timing depends on the bank.
If the deposit was charged, the refund may take several business days after it has been initiated. In some cases, bank processing may take longer.
It is therefore important to count business days. Saturdays, Sundays and bank holidays may not count towards transaction processing. Banks get weekends too. Apparently the money joins them.
If the funds still do not appear after the expected banking period, it is worth checking the refund status with the rental company first and then contacting the bank with the transaction details.
What is checked before the deposit is returned?
The deposit is usually not returned automatically in the same second that the customer hands over the keys. The vehicle must first be inspected and the agreement closed.
Before the deposit is returned, the company may check:
- bodywork;
- windows;
- mirrors;
- lights;
- rims;
- tyres;
- interior;
- fuel level;
- mileage;
- return time;
- keys;
- vehicle documents;
- additional equipment;
- child seats;
- compliance with the rental conditions.
If the vehicle is returned outside office hours, the final inspection may take place later. For this reason, the moment the keys are handed over and the moment the agreement is closed may be different.
Which costs may be deducted from the deposit?
If costs arise during the rental that are the customer’s responsibility under the agreement, they may be deducted from the deposit in full or in part.
This may include:
- vehicle damage;
- missing fuel;
- additional mileage;
- late return;
- lost key;
- damage to tyres or rims;
- fines;
- administrative fees;
- additional cleaning where provided for by the agreement;
- other costs under the rental conditions.
The exact deductions depend on the rental agreement, selected coverage package, reason for the charge and circumstances of the specific rental.
Vehicle damage
After the vehicle is returned, it is checked for new damage. If damage is found that was not recorded at pick-up, further responsibility depends on the rental agreement and the selected coverage package.
This is why it is useful to take photos and videos at pick-up of:
- bodywork;
- bumpers;
- doors;
- rims;
- tyres;
- windows;
- mirrors;
- interior;
- mileage;
- fuel level.
Five minutes with a camera when collecting the vehicle is usually much more pleasant than studying a scratch photo two weeks later at 400 percent zoom and trying to determine its historical period.
Fuel
The fuel return conditions are stated in the rental agreement. If the vehicle must be returned with a certain fuel level and the actual level is lower, the missing fuel and any contractually applicable costs may be charged to the customer.
Before returning the vehicle:
- check the fuel policy;
- check the current fuel level;
- refuel in advance if necessary;
- keep the fuel receipt;
- take a photo of the fuel level at return.
A fuel receipt and a photo of the dashboard take a few seconds. They can save someone from later trying to prove across three countries and five banks that the fuel gauge really showed full.
Fines and administrative fees
Traffic fines are the responsibility of the driver. If the rental company receives an official request related to a traffic offence during the rental period, the renter’s details may be provided to the competent authorities in accordance with the rental agreement and applicable law.
The rental agreement may also provide for administrative fees connected with processing fines or other official notifications.
It is important to understand that a fine may arrive after the rental agreement has already been closed. Ending the rental does not mean that an offence committed during the rental suddenly stops existing. Convenient idea, certainly. The authorities were apparently not persuaded.
Mileage and late return
Mileage conditions depend on the rental period and type of rental. Before signing the agreement, it is important to check how much mileage is included and whether any limits apply to long-term rentals.
The agreed return time should also be respected.
Additional charges may arise because of:
- exceeding the permitted mileage;
- returning later than the agreed time;
- extending the rental without approval;
- returning the vehicle to another location without agreement.
If you want to extend the rental, it is better to contact the company before the current agreement expires. Simply continuing to drive and assuming “we will sort it out later” is a strategy that rarely becomes cheaper with time.
Lost keys and other additional costs
Loss or damage of a vehicle key may lead to additional charges according to the rental agreement. The cost of a modern car key may include not only the key itself, but also programming, production, delivery or other necessary work.
Additional costs may also arise because of:
- lost vehicle documents;
- lost additional equipment;
- damage to a child seat;
- unauthorised repair;
- use of incorrect fuel;
- breach of the permitted territory;
- negligent use of the vehicle.
Having an extended coverage package does not automatically mean that every possible cost is covered. Specific exclusions should always be checked in the rental conditions.
Can the deposit be provided using another person’s card?
Usually not. The card used for the deposit must be physical and issued in the main driver’s name.
The following are usually not suitable for the deposit:
- a spouse’s card;
- a friend’s card;
- a relative’s card;
- a company card belonging to another employee;
- the card of the person who paid for the booking but is not the main driver.
If one person paid for the rental and another person is the main driver, this does not automatically mean that the first person’s card can be used for the deposit.
The cardholder must meet the requirements of the specific rental agreement. Love and family relationships receive approximately zero recognition from the payment terminal.
Can a virtual card be used?
A physical bank card is usually required for the deposit. For this reason, virtual cards, cards available only in a banking app, Apple Pay and Google Pay are normally not suitable.
The reason is that, when processing the deposit, the rental company must be able to verify the physical card and its holder in accordance with the rental conditions.
Before travelling, make sure the physical card is actually with you. A screenshot, photograph of the card or its appearance in a mobile app usually does not replace the original card.
Can the deposit be paid in cash?
The deposit normally cannot be provided in cash. Bank transfer and payment link are also generally not used for the deposit.
Rental payment and deposit processing are governed by different conditions. Therefore, being able to pay the rental itself in cash, by transfer or through a payment link does not mean that the deposit can be provided in the same way.
A suitable physical bank card in the main driver’s name is required for the deposit.
What should you do if the refund has not arrived yet?
If the deposit was charged and the refund has not appeared yet, first check how many business days have passed since the rental agreement was closed, not simply since the vehicle was handed back.
Then it may be useful to:
- check the banking app;
- make sure whether you are looking for a refund or a released hold;
- check the available balance or credit limit;
- confirm the date the agreement was closed;
- ask the rental company for the refund status;
- obtain transaction confirmation if available;
- contact the bank if the normal processing period has already passed.
If the deposit was only blocked, there may be no separate incoming transaction at all. The available balance simply becomes available again.
If the deposit was charged, the refund is processed as a banking transaction and may appear separately.
This distinction matters because a customer can otherwise spend two weeks searching for an incoming payment that technically was never supposed to exist. Banking apps are remarkably good at turning a simple release into a detective story without a crime.
Frequently asked questions about deposits for long-term rentals
Why was the deposit charged for a 13-day rental when it was only blocked before?
For rentals of up to 12 days inclusive, the deposit on a credit card is usually processed as a pre-authorisation. For rentals of 13 days or more, the deposit may be charged. This is connected with how the financial guarantee is processed for a longer agreement.
Is the deposit an additional charge?
No. The deposit is a financial guarantee under the rental agreement and is separate from the rental payment.
If the deposit was charged, will it always be refunded?
After the agreement is closed, the deposit is refunded subject to any possible costs or deductions provided for by the rental agreement.
Why did the money not return on the day I returned the car?
The vehicle must first be inspected and the rental agreement closed. After that, the hold is released or the refund is initiated. If the deposit was charged, banking processing may take several business days.
Why can I not see the refund in my banking app?
If the deposit was only blocked, there may be no separate refund transaction. Once the hold is released, the available balance or credit limit simply increases again.
Can I use a debit card?
This depends on the vehicle category, package and conditions of the specific rental. If a debit card is accepted, the deposit is usually charged.
Can I use a virtual card?
A physical bank card in the main driver’s name is normally required for the deposit.
Can I use my wife’s, husband’s or friend’s card?
Usually not. The deposit normally requires a card in the main driver’s name.
Long-term car rental with SOLO rent a car
For a long-term rental with SOLO rent a car, it is important to check the deposit conditions, bank card type, vehicle category, coverage package, mileage and return conditions in advance.
For rentals of up to 12 days inclusive, the deposit on a credit card is usually processed as a hold. For rentals of 13 days or more, the deposit may be charged. When using a debit card, if it is accepted under the selected rental conditions, the deposit is usually charged.
A suitable physical bank card in the main driver’s name is required for the deposit. Virtual cards, Apple Pay, Google Pay, third-party cards, cash, bank transfer and payment link are normally not suitable.
After the vehicle is returned, it is inspected, the rental agreement is closed and the deposit release or refund is then processed. If the deposit was charged, the speed at which the funds appear in the account depends not only on when the refund was initiated, but also on processing by the customer’s bank.
SOLO rent a car works with customers in Malaga, Malaga Airport, Marbella and Alicante. For a long-term rental, it is better to clarify all financial conditions before collecting the vehicle. That is considerably calmer than opening the banking app after two weeks of rental and unexpectedly beginning an additional education in payment processing.
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