What Is a Deposit (Preauthorization)? When Is the Hold Released?
A deposit (preauthorization) is a temporary hold placed on your credit card during a car rental. It serves as a financial security measure for potential additional costs at the end of the rental and helps keep the process transparent and controlled.
Note: A preauthorization is not a charge. It temporarily reduces your available credit limit and is released after the rental is closed, depending on your bank’s processing times.
What Is a Deposit (Preauthorization)?
Preauthorization is a temporary block on a specified amount from the driver’s credit card. It is used as a security guarantee to cover possible post-rental items such as additional services, contract-based charges, or outstanding balances (if applicable).
How Is the Preauthorization Applied?
The hold is placed at vehicle pick-up using a credit card issued in the driver’s name. The amount may vary based on the vehicle group, insurance package, rental duration, and seasonal conditions. Once the rental is completed and final checks are done, the hold is closed.
When Is the Hold Released?
After the preauthorization is closed, the release timeframe depends on your bank. In many cases, the hold may be released within a few business days, but the timing can be longer depending on the bank’s internal procedures, card type, and processing cycles.
What Can the Deposit Be Used For?
The deposit is a security mechanism and may be used to cover contract-based additional items if they occur at the end of the rental. The goal is to manage potential differences in a documented and auditable way.
Examples may include: missing fuel, late return, contract-based charges, tolls/paid roads, and traffic fines (subject to contract and legal procedures).
Frequently Asked Questions (FAQ)
WHAT IS A PREAUTHORIZATION?
A preauthorization is a temporary hold placed on your credit card as a security deposit. It is not a payment and is released after the rental is closed, depending on your bank’s processing time.
WHY IS A CREDIT CARD REQUIRED?
Preauthorization is processed through the banking credit card infrastructure. Therefore, a credit card in the driver’s name is required. Cash or debit cards are generally not accepted for preauthorization.
HOW LONG DOES IT TAKE FOR THE HOLD TO BE RELEASED?
The release time varies by bank. After the hold is closed, it may take a few business days, or longer in some cases, depending on the bank’s internal procedures and card type.
WHAT IF THERE ARE ADDITIONAL CHARGES?
If contract-based additional items occur (e.g., missing fuel, late return, tolls, or fines under applicable procedures), they may be calculated at return and handled according to the rental agreement terms.
