Car rental deposits explained: what drivers need to know before pick-up

A car rental deposit is money the rental company secures before handing over the keys, to cover costs that might arise during the rental: damage up to your excess, fuel, tolls, fines or late return. In most cases it is not taken from your account but held on a card — which is why the type of card, and whose name is on it, matters as much as the amount.

How a deposit hold works

When you collect the car, the desk asks your card issuer to reserve an amount — the pre-authorisation. Your available balance or credit limit falls by that amount, but no payment has been made. When the rental closes, the company either releases the hold or captures part of it to pay what you owe.

Many companies hold the estimated rental cost as well as a fixed security amount. Hertz, for example, says it may place up to $200 on a credit card "plus the estimated charges" for US rentals.^[1] Sixt's standard US hold is the rental amount plus $200.^[2] If you have prepaid the rental, only the security part may be held; if you are paying at the desk, expect both.

Why the card matters

Most refused pick-ups are not about the amount, but the card. Rental terms commonly require:

• A card in the main driver's name. EconomyBookings warns that a card in someone else's name may be rejected and that it will treat the result as a no-show.^[3]
• A credit card, not a debit card. EconomyBookings says debit, prepaid, electronic-only and neobank cards are generally not accepted for deposits unless the offer's conditions say otherwise.^[3]
• A physical card. Sixt requires the payment card to be physically presented at pick-up, even when you paid online through Apple Pay or PayPal.^[2]
• Enough available funds. DiscoverCars' terms list failing to provide an acceptable deposit as a no-show, with no refund of what you prepaid.^[4]

Debit cards are not always refused. In the US, both Sixt and Hertz accept them under conditions — typically a return travel ticket, extra identification and, at Hertz, a minimum age of 25 and a credit check.^[2][1] The conditions are specific enough that you should read them before booking, not at the desk.

How much is the deposit?

There is no standard figure. It depends on the company, country, vehicle category, payment card and whether you buy the company's own excess-reduction product. These published US examples show the range:

When you book through a broker, the deposit is still set by the supplier. DiscoverCars' terms say the security deposit "is not governed by the Booking Agreement and is not charged by the Company", and that the amount and accepted cards are listed in each offer's rental conditions.^[4] The number to look for on a broker site is the supplier's deposit, not the broker's price.

Does buying extra cover remove the deposit?

It depends who sells the cover. Broker excess products usually do not remove the deposit. DiscoverCars' terms say that buying its Full Coverage "does not exempt the Customer from leaving a security deposit", and EconomyBookings says you must still provide a full deposit even with its Full Coverage.^[4][3] That is because those products reimburse you after the rental company has charged you; the rental company still wants security.

Cover bought directly from the rental company at the desk sometimes reduces the deposit, because the company is taking on the risk itself. Whether it does, and by how much, is set locally. Ask before you accept or decline it.

When do you get it back?

Release has two steps: the rental company closes the rental and releases the hold, and your card issuer makes the funds available again. Published terms give broad expectations rather than guarantees:

• DiscoverCars says a hold on a credit card "lapses, usually within 3 weeks of the end of the rental period" if no costs arise.^[4]
• EconomyBookings says the hold is "typically released within 30 days" after the rental ends, provided nothing is outstanding.^[3]
• Sixt says a refund to the initial payment method can take up to 15 business days when the payment method is changed during or at the end of a rental.^[2]

If a hold has not dropped off after those periods, contact the rental company first — only it can release the hold — and then your card issuer. Keep your closed rental agreement and any return receipt, which show that the car came back and what was charged.

A pick-up checklist

Frequently asked questions