renting with debit card
 

Planning on renting a car from Austin Bergstrom airport in October. I don't have a credit card so will have to use my UK Debit card. I have read that avis don't accept debit cards when the person is under 25. Is this correct

I have also read that UK and USA debit cards are different and that uk cards are more like credit cards so do you think they would accept it from a 24 year old.

Thanks

Welcome to FlyerTalk, bigdavidg.

I hope you have plenty of money in your bank account. The problem with a debit card, other than the age issue (which I don't know the answer to, sorry) is that the Avis (or any other rental company) can place a hold on the debit card (and thus on your bank account) for much more than the cost of the rental (on the possibility that you'll return the car late, etc).

Quick Google search shows that Avis will rent to debit card users 25+. So I'd be willing to bet try will not make an exception as their site doesn't say anything abt country of issuance.

I'd look to other agencies or at getting a credit card, if possible.

Debit cards are a very bad idea with car rentals. You run the risk, especially with a non-US card, that an eye-popping hold is placed on the card.

A hold on a DC means that those funds in your account are tied up completely. Unless you have a very large balance and can afford to have it tied up, a DC is a poor idea.

A dummy booking at avis.com indicates that Avis' AUS location does not accept debit cards. Hope the OP has a Plan B.

After read the replies and a bit more digging. I decided not to risk it and went with enterprise instead who accept debit cards without a age limit.

I understand they put a large hold on money in the account to cover additional costs. I have read that its usually hire cost +25% but could go up to $1000.

The larger issue is how quickly the hold is released and then how long it takes for that release to make it to your bank and for your bank to act to release the hold.

US domestic large banks tend to accomplish all of this inside one business day. But, if you are renting in the US with a non-US bank debit card, it may take 3-5 business days for the release to reach your bank and then however long it takes your bank to release the hold.

Note also that if there is any damage, even minor damage that you consider insignificant, that hold will stay in place and that if you have used a debit card, you are effectively authorizing any repair costs to be direct-debited to your bank account with very few rights such as chargeback.

I am reluctant to get a credit card because i prefer to use the funds I have in my in my accounts. Anyway it seem the best course of action is to get one. Phoned my bank and it turned out I am already pre-approved for one so should have one in the next couple of days.

It does have a limit of £1200 and the rental cost is around £450 should this be ok to cover the hold?

If you don't mind going to the counter upon your return, you might be able to change the final payment to a debit card at that point (once all you have to pay is the final amount). It's just the hold until you return the car that needs to be on a credit card.

No guarantee, but if you'd prefer to use the debit card for payment, and you have the time to visit the counter upon your return, it can't hurt to ask. (In fact, you could ask about that possibility when you're picking up, assuming you're visiting the counter anyway at that point.)

The damage issue might be moot: Depending on the booking channel the OP uses, the rate for a UK resident could include both LDW and SLI. (Avis included both in the dummy booking where the renter's residence was identified as U.K.)

OK.
To start with, I only use a UK debit card with Avis Preferred.
Never had an issue, never had a huge hold on the card.
I do book via BA who supply a pre paid voucher
The USA seems to look at US debit cards as credit cards.

avis have a line in their T & C's that under 25's cant use a debit card which was my original concern being 24. I have got a credit card now so will use that just in case

Yep.

That said, it may be different over in the UK. But in the US, consumer protection laws (and/or bank policies) offer much stronger protection when using a credit card than a debit card.

As for your other comments, the Visa network has a technical process in place that allows a merchant to instantly and electronically reverse an authorization (Google "authorization reversal visa"). Not every merchant knows about that or is set up to do it, but it's technically possible, and subject to normal processing delays, an authorization reversal should effectively instantly restore the available funds to your account.

Other networks (MC/AX/DS/etc.) don't have this capability, and so the hold will remain on your funds until one of the following two things happens:

1. a charge is settled/posted against the authorization (it can be a charge for the full amount or even just $1; this happens in the US via the ACH networks and can take 2-3 days from the time the credit card batch is submitted before the posted charge shows up on your account)
2. the card-issuing bank decides to expire the hold and return the available funds to your account (many banks do this after 7 days, but some wait a full 30 days, and merchants can technically still claim funds within 30 days of the date of the initial authorization, even if it then results in an overdraft/overlimit situation on your account)

Other than calling the bank and having them manually remove the hold, there is no way to get access to those funds outside of the above two options.

If using anything other than a Visa, the fastest way to get a hold removed is for the merchant to post a $1 charge against the hold (and then issue a $1 refund, of course). That will still take at least a couple of days to process, though.

While what you prefer to do is indeed a good way of avoiding getting into credit card debt, it does tend to be problematic for car rentals (and, less frequently hotels or other merchants where you are effectively borrowing an asset for a period of time). Car rental companies prefer credit cards because it takes some level of responsibility to qualify for one, so it is a quick-and-dirty way of screening out some of the most financially irresponsible customers, and in general people who have credit cards tend to have the means to pay for them and for any additional charges that may arise (damage, etc.). Also, as mentioned above, the procedures and protections are much better and simpler on credit cards than on debit cards.

If you prefer to use your debit card so that you will spend responsibly, get a card (as you said you did) and save it only for situations where a credit card is beneficial (like car rentals). If you don't trust yourself to not use it, lock it away and only get it out before a trip, or (even better) put it in a cup of water and put the cup in the freezer, which will force you to plan ahead to melt it out and thus avoid having it available for impulse purchases.

Used debit cards (UK) in the USA without any problems renting at Avis

You would be able to do a change of payment method when returning; tell them at check in that you need to change the method of payment, then they will send you to the counter, and have them charge the rental bill to your debit card. Then the pre-authorization they make to your credit card will fall off a few days after the rental. This may waste 20 minutes of your time and it may take as little as 1 minute to accomplish, keep that in mind also.

Since you will have the credit card, you could do the same thing with hotels. Give the hotel the credit card at check-in so they can do the pre-authorization, then at check out you can just change the method of payment to the debit card if you would prefer to pay with that.

Definitely best to travel with a credit card due to all of these pre-authorizations that take place at hotels and rental car agencies.