The security deposit a rental car agency holds as a credit card authorization during your rental can take a couple of days to a couple of weeks to be released, assuming a clean return inspection on the car. These deposits are not charges or withdrawals; they’re refundable holds, in which nothing leaves your account. The timing of a deposit’s release depends on the bank that issued your credit card. (By law, banks can keep a rental car authorization hold active for up to 31 days, so don’t assume you’ve been charged if the hold takes a while to drop off. You’ll just need to monitor your available balance until you see the funds open up again.)
Your rental agency runs an inspection on the car and will release the authorization hold on their side immediately or shortly after that inspection is clean. How long it takes the bank to release the hold back to you varies. The bank that issued your credit card is in charge of when this hold will drop off of your account balance. Because of this, you might see the agency has released the hold, but your available balance hasn’t rebounded.
If a hold still shows on your credit card balance after two weeks, call your credit card issuer. (Their number is on the back of the credit card.) Ask them to look into the specific transaction and determine when the deposit will be fully released.
The type of card used is a big factor here. If you used a credit card, the agency has put a hold on an authorized amount of funds (a pre-authorization), and none of that money leaves your account. They must simply release the deposit. Debit cards work differently and are only allowed by rental agencies in certain circumstances. When allowed, a debit deposit is typically taken as a real charge from your checking account. The funds are gone. Debit card deposits can’t be released as quickly as credit card ones can. For example, at Enterprise, you’ll have to call the rental branch directly if the deposit isn’t back after 10 business days. Hertz does not allow the use of debit cards for its Prestige SUV, Adrenaline or Dream Collection cars. A credit card is required for these vehicle classes. Nebraska’s banking regulator explains: a rental car hold can last the whole rental period plus several days after the rental.
One more tip for speeding up the hold release process: Make sure you use the same credit card for the rental itself that you booked the car with. Experian explains that paying the final bill on a different card than you booked with can keep the authorization block active longer.
The Size of the Hold
The amount of the deposit does not affect the amount of time it takes to release the hold. It only changes the amount of funds that you have tied up while you drive. The size of the hold reflects the type of car you rented, as the rental agency wants to have a sizeable buffer for the cost of repair or replacement of parts if something should happen while you drive. In general, a pricier car requires a larger deposit, as it is made up of more pricier parts. More potential for damage means more money set aside. Just having enough money for the car itself isn’t enough, though. Many businesses do a credit card authorization hold of an additional set amount of funds for additional protection for themselves. For example, the Hertz rental terms for Miami allow a card authorization hold of up to $850 on a Dream Car. You need to have that amount free and available on your credit card in addition to enough for the rental itself. Ask what amount to expect for an authorization hold when you book, so you can make sure the hold and the rental together won’t go over the open credit on your card.
Extra Costs Apply Like Fuel, Damage, Late Return
Enterprise returns the full deposit unless extra costs apply like fuel, damage, late return. Damage to the car during your rental, like a new scratch or damaged wheel, can also hold up the release of your deposit while the rental agency decides what fees you need to pay to get the car fixed. A damaged windshield may also delay the return of your deposit.
If your rental agency requires the car be returned full of gas, make sure it is full of the premium gasoline that they use. Otherwise you could incur a refueling charge, and the gas fill-up charge would come from the hold before the hold is refunded. Any tolls or photo-enforced traffic tickets incurred during your rental will be mailed to you as the driver of record. They can be settled against your deposit hold before the balance of that hold is refunded. With Hertz, if the car comes back after the scheduled date and time, they add additional holds. Racing the car, off-road driving or leaving the approved area can void the coverage of the rental car policy, and that can make you liable for costs that would normally come from the rental agency.
If you rent in New York, you’re in luck. State law bars rental companies from collecting a security deposit or damage payment, by credit or debit card or otherwise, during the rental, while a dispute is pending, or before a court judgment. New York requires car rental damage claims to be based on the condition of the car at the time it is returned. If you drop off the car at night or in the drop-box, the agency must make a claim within ten days of your return. The size of the claim is capped at the lower of the car’s reasonable repair cost or its fair market value prior to the damage. The agency can’t bill any loss-of-use costs or related administrative fees.
Billing Dispute
If you wrongly lose part of your deposit to a bill you don’t think you should have received, the Federal Trade Commission says you can file a written billing dispute. Your issuer needs to receive that dispute within 60 days after the first bill that shows the error was sent. The issuer must resolve the dispute within 90 days after they get it.
Returning the rental car undamaged and as clean as when you got it is the best way to see a quick refund of a deposit. Make sure you’ve got a large enough credit card limit available to cover the full rental bill and any deposits, refueling, or tolls. Pay all deposits, fees, the final bill, and any tolls with the same credit card. And if your deposit takes more than two weeks to show up on your account, check with your credit card issuer to see when they can release it to you.
