Whether you're headed out on a weeklong road trip or just need a ride while your car is in the shop, rental cars can make it easy to get to where you're going. However, if you plan on using a prepaid debit card to make your reservation, you'll want to think again. Car rental companies have all kinds of rules on how to reserve cars, including the payment types they'll accept to hold your reservation and to guarantee the car against damage.
In general, car rentals can't be reserved with a prepaid debit card. However, the company may let you use one to pay your final charges. Read on to learn how deposits work, what card types rental companies accept, and what you can do to avoid any surprises on your bill.
Why companies dislike prepaid card car rentals
Whether you use Avis, Hertz, Enterprise, or another car rental company, most will not allow you to use your prepaid debit card to reserve or secure your rental. Here are a few of the reasons why.
Payment security and risk
When you drive off in the rental car, anything could go wrong, including damage, unpaid tolls, and parking tickets. The rental company is liable until they can recoup any fees or payments from you, and they need to know they can charge your card for the initial hold and even more if needed. A prepaid card isn't linked to a bank account and may not have enough funds to cover the rental — much less any unpaid fees received later.
Also, prepaid debit cards may get closed out when there's no longer any money in the account, so this increases the risk of a car rental company needing to get funds after the rental is returned.
Customer creditworthiness
Driving off with a $40,000-$60,000 vehicle (or more!) comes with a lot of trust. Rental companies may feel that someone with a credit card that requires application and vetting may be more reliable than someone who opens a prepaid debit card account. (These accounts may not require the same level of verification and increase the perceived risk that a rental may not be returned or could be used in a crime.)
Administrative burden
When renting with a credit card, it's possible to input your information, including your driver's license and credit card, online. You may not even have to stop inside the rental agency, especially if you use one of their apps. Using a debit card can require more paperwork or forms of ID to prove who you are. Rental agencies in busy areas may not want to go through this extra work, and it definitely limits how they handle after-hours pickups and returns.
Using a prepaid debit card to pay for your car rental
Even if you can't use a prepaid debit card to reserve your rental and pay the deposit, you may be able to use it to pay for some or all of the balance when you return the car. Companies may treat it more like cash, which is an accepted method of payment, provided you have enough to cover the balance.
In this case, you may be asked to keep another method of payment on file if traffic tickets, tolls, or other fees come in during the weeks after the rental is returned. Refer to the company's policies and ask questions if you're unsure how this will be handled.
Some companies, such as Hertz, even accept prepaid gift cards, but only after the rental.
Can I rent a car with a debit card instead?
It depends on the company, but Enterprise is one rental agency that lets you use a regular debit card to reserve and hold your car, with some limitations. For example, if you're renting from an airport location, you must have a ticketed return travel itinerary. Addresses on the driver's license and home address must match, and no drivers other than a spouse may be added.
The debit card rental deposit may be up to $850 above the cost of the rental, and it can take up to 20 days for the deposit to be returned. Enterprise also requires a utility bill without a past due balance or disconnect notice, and the company will call a personal reference at the time of the rental to verify the renter's identity.
These extra procedures help protect companies that accept regular debit cards and make it easier for customers to reserve and pay using these cards.
Car rental companies that accept debit cards
Companies that let you reserve and pay with a reloadable debit card include the following. (Policies vary by company, and these can change at any time.)
Tips for renting a car without a credit card
If you don't have a credit card, it may be more difficult to rent a car. It also takes more time to go through the process. However, having an idea of what to expect and following the tips below can save you trouble and help you avoid surprises.
1. Call ahead and confirm policies
Each rental company varies in how it handles payments and reservations, and there can even be differences between locations for the same company. Call in advance of your reservation, even if you reserve online. After you make your reservation, read any emails and texts that explain what to do when you arrive. These notifications often share details on how to verify your ID or what type of deposit is required.
2. Check age restrictions
Many rental cars won't rent to those under 25, but some make exceptions with additional verification and fees. Ask what's available for younger renters or if they can be added as an extra driver on an adult reservation.
3. Bring ID and documentation
Rental companies may ask for your driver's license, car insurance, pay stubs, or cell phone bills. Have physical copies of these documents, even if you can access them through an app. It may not be enough to provide them at the time of reservation, so be prepared to bring them in when you pick up the car. If you're booking at an airport, bring your travel itinerary, boarding pass, and tickets.
4. Expect a larger deposit
Depending on the car you reserve, your deposit could be quite large. SUVs and pickup trucks can have higher deposit amounts simply because they are worth more (and have higher overall rental fees). The more expensive the car and the longer the rental, the more you'll have to account for on your debit card balance. Holds can total up to $800 or more and not be returned for weeks after the rental has been returned.
5. Plan for insurance
A common benefit for credit cards, especially those with travel rewards, is to offer basic insurance against damage or theft of a rental car. Debit cards do not have these same benefits, so you'll either have to pay for the extra coverage yourself or show you have added benefits through your personal car insurance company.
6. Understand restrictions
Some cars may not be rented at all with a debit card, including some luxury vehicles, moving vehicles, vans, or buses. Companies may also limit the number of miles you get with the rental instead of giving you unlimited miles.
7. Consider alternatives
Finally, if the deposit is too high or the terms are too restrictive, you may want to be added as an authorized user on someone else's reservation. If they have a credit card, they could possibly add you for a small additional fee ($25 or more) and let you drive the car for the duration of the rental. This could be more affordable in the long term and give you access to more cars and locations.
If this doesn't work, a car-sharing platform could benefit you. Platforms like Turo let U.S. drivers as young as 18 rent cars from individual vehicle owners and let you book with a debit card.
The right rental car payment options for you
Debit card car rentals are offered by most of the agencies, but they come with costly deposits and extra rules for proving your identity. If you don't like the idea of having up to $850 or more of your money tied up in a deposit, it's best to go with a credit card if you can.
Using a credit card to reserve your car doesn't mean you have to pay with it. Some agencies let you use a debit card, cash, and even prepaid gift cards to complete your purchase. As long as they have a credit card to help with liability, they may not care at all how you pay your final bill.
If you don't have a credit card, just be sure to check out the car rental deposit policies for all the agencies near you. Some may have different rules based on location, type of rental, and the length of your contract. Shop around until you find the right price and policy for you and your wallet.
