Car Rental and Credit card limits

Factual Questions
1

I’m going to be traveling on Monday for a short (3 day) vacation, and rented a car as part of my Orbitz travel package. This is the first time I’ve ever rented a car while traveling. One of the things I was told is that I’ll need a credit card (not the debit card I used to pay for the trip) in order to pick up my rental. That’s not a big deal, but I am curious as to what happens if the hold they place on the card goes over my credit limit.

I’m fine with the card being tied up and unusable for the duration of the trip, but if their hold goes over my limit (it is a low limit credit card, since I bluntly don’t trust myself to have a higher limit card due to issues in my past), do they reject the rental? I’ll need a car to get around where I’m travelling. Will I get charged an over-the-limit fee for a mere hold?

Any advice?

2

If you’re only going for three days, I can’t see the hold being more then maybe $300 or so. Is that within your limit?

3

It is, but I’m still kindof curious as to what could happen were it to go over the limit. :slight_smile:

4

I have no idea. Maybe it would get declined?

5

It’s impossible because they don’t charge your card they are authorizing it.

If they authorize it for an amount and it’s more than your credit limit, the card is simply declined.

Authorization just puts a hold on some of your credit line. When the transaction is done, in this case when you return the car, the card is billed for the actual amount and the hold is released.

For example.

Rate for car is $20/week

Your credit limit is $1,000 (no outstanding balance)

Acme car rental authorizes the credit card for $750.00

This places a hold on that amount and means you can only use the remaining $250.00 on the card

When you return the car, the credit card company bills you $20.00 (let’s keep it simple and forget about taxes and service fees).

Then when they put the charges through (usually this is done at midnight), THIS IS WHEN your charged $20.00 and the remaing $730 will be released back to you for your use. Usually this release happens in 1 to 3 days.

Just be aware car rentals companies are notorious for authorizing as much as they possibly can.

I used to work in hotels in Florida, and I can’t tell you the number of times someone went to check in and I said, “Sorry your Visa has been declined.”

The guest is like “How is that possible? It’s a new card” Or “I am paid up.” Or “I don’t owe anything.”

Then I’d say “Did you rent a car.” The guest says “of course.” Then I say, I suggest you call your credit card company and see how much authorization the car rental took.

Every single time, the car rental agency, maxed out the authorization. Then the guest has to call the rental company and get some of the money released back right away so they can use the credit card for other things

6

Recently, I rented a car from Enterprise due to an accident. Although the other driver’s insurance was paying for the rental, a hold charge was placed on my credit card. As I waited for a car, another customer walked in to rent a car and didn’t have a credit card, but a debit card. They said they’d accept it, but he would also need a utility bill or paycheck as proof of residence (no. P.O. boxes) before they did. Also, whereas the hold charge for a credit card was $100, it was $300 for the debit. Still, if you have the cash in your checking account, you might want to try that option.

7

I’ve run across the credit card vs. debit card thing at Enterprise, too. I think they’re the only one that does it, and it was a pain in the ass. Never had trouble with Hertz or Budget, and now I have an iGo account, so it doesn’t matter any more, thank Og!
To the OP, just call your CC company and ask them. They will know exactly the right answer for your case.