Yes—for practical purposes, all car rentals require a deposit. Nearly every rental company places a temporary hold on your credit or debit card at pickup, and those holds typically start around $200 and can exceed $500 depending on your payment method, the vehicle class, and the company’s policy.1Federal Trade Commission. Renting a Car A small number of programs let you skip the traditional hold, but some form of financial block is standard across the industry.
What the Hold Actually Is
The “deposit” is not a charge. It’s an authorization: the rental company asks your card issuer to set aside enough money or credit to cover your estimated bill plus a buffer for extras like fuel, tolls, or late fees. The Federal Trade Commission describes the practice as a way for companies to make sure funds are available to cover the final bill, including charges that come up during the rental.1Federal Trade Commission. Renting a Car
On a credit card, the hold reduces your available credit temporarily. On a debit card, it locks up real cash in your checking account. That difference is the one most renters underestimate. If you’re near your credit limit or have a low balance, a large hold can cause other transactions to be declined, and on a debit card the money is not spendable until the hold is released.1Federal Trade Commission. Renting a Car
Typical Hold Amounts by Company
Most agencies calculate the hold as your estimated rental total plus a fixed incidental buffer. Recent policies from major companies:
- Budget, on a credit card: your estimated rental charges plus 25% or $200, whichever is greater.2Budget Rent A Car. Requirements for Renting
- Budget, on a prepaid or debit card: a $250 authorization on top of the prepaid amount, with a $100 minimum for prepaid and insurance-replacement rentals. Select Northeast and North Central locations set the minimum authorization at $500.2Budget Rent A Car. Requirements for Renting
- Hertz: up to $200 on a credit card or up to $500 on a debit card, plus estimated rental charges.3Hertz. Reservation Policy
- Avis, pay-now rentals: the full rental amount plus a $250 minimum hold on both credit and debit cards.4Avis Rent a Car. How Much Does It Cost to Rent a Car
Airport branches often apply larger incidental buffers than neighborhood locations. Check your estimated total online before you get to the counter so you know the payment method you’re using has room for it.
Credit Card vs. Debit Card at the Counter
A credit card is the smoothest way to handle the deposit. The hold reduces your available credit and no cash moves. You’ll need a valid driver’s license that matches the name on the card.5Budget Rent A Car. What Do You Need to Pick Up Your Rental Car Stricter locations also want the card’s expiration date to sit comfortably beyond your scheduled return.
Debit cards carry extra conditions. At Enterprise airport locations, a debit card is only accepted at pickup if you can also show a ticketed return travel itinerary.6Enterprise Rent-A-Car. What Forms of Payment Are Accepted for Renting a Car in the United States Hertz runs a credit check on most debit card renters.7Hertz. Terms and Conditions The incidental hold is often bigger too: Hertz’s debit hold goes up to $500 versus $200 on a credit card.3Hertz. Reservation Policy
Your account balance has to cover the full estimated rental plus the hold, or the transaction is declined at the counter. You’re also on the hook for any overdraft fees if the hold takes your balance below zero.6Enterprise Rent-A-Car. What Forms of Payment Are Accepted for Renting a Car in the United States
What Raises the Hold Amount
Vehicle Class and Rental Length
Economy cars carry the lowest holds. Luxury vehicles and full-size SUVs push the number up. Duration compounds the effect: agencies multiply the daily rate over the full rental period and then add the incidental buffer, so a weeklong rental ties up much more than a weekend.
Declining the Agency’s Damage Waiver
Rental companies sell a Collision Damage Waiver or Loss Damage Waiver that limits your liability if the car is damaged. If you decline it and plan to rely on your personal auto policy or a credit card benefit, the agency may set the hold as if you have no coverage at all, because your outside coverage reimburses you, not them.
Renters Aged 21 to 24
Young drivers face a daily surcharge at most major agencies. Budget charges $27 per day at most U.S. corporate-operated locations, and the industry generally runs from $20 to $35 per day, with some markets higher. Vehicle restrictions apply too: Budget does not allow renters under 25 to book luxury cars, minivans, 12-passenger vans, or premium SUVs, and it does not allow them to pay with a debit card at corporate-operated locations, which effectively forces a credit card.2Budget Rent A Car. Requirements for Renting Hertz waives the surcharge entirely for AAA members between ages 20 and 24.8Hertz. Young Renter Travel Deals
Local Renter Policies
Some branches apply stricter rules when your license shows a local address: a higher security hold, a credit card requirement even where debit is normally fine, or a request for additional proof of residence. These policies are not always disclosed at booking, so call the branch if you’re renting close to home.
International Renters
If you’re visiting the U.S. with a foreign driver’s license, you may need both that license and an International Driving Permit to rent.9USAGov. Driving in the U.S. if You Are Not a Citizen Deposit rules vary, and some agencies require a credit card issued by a bank in the renter’s home country.
Cards That Won’t Work, and the Cash Option
Not every piece of plastic counts. Enterprise does not accept virtual credit cards, single-use card numbers, or prepaid cards without a Visa, Mastercard, or Discover logo. Gift cards carrying a major card logo can settle the bill at return, but they cannot be used at pickup when the deposit hold is placed.6Enterprise Rent-A-Car. What Forms of Payment Are Accepted for Renting a Car in the United States Similar limits apply at most other major agencies.
Cash rentals exist but need lead time. Dollar accepts cash only from customers who hold a Cash Deposit ID Card. Applying costs $15, involves a credit check, and takes roughly 30 days to process.10Dollar Rent A Car. How to Rent With a Debit Card Without a traditional credit or debit card, expect that kind of runway.
When the Hold Comes Off
Once you return the car and the agency finishes its inspection, the company sends a release to your bank or card issuer. Enterprise says it releases the authorization immediately upon return and only charges the final rental amount to your card.11Enterprise Rent-A-Car. How Do Refunds Work With the Different Methods of Payment How quickly the money shows back up in your account depends on the bank.
Credit card holds usually clear within a few business days. Debit card holds take longer because actual cash has to move back into your available balance. Enterprise estimates 5 to 10 business days for debit refunds.11Enterprise Rent-A-Car. How Do Refunds Work With the Different Methods of Payment Avis warns funds may take up to two weeks to be released by your bank.4Avis Rent a Car. How Much Does It Cost to Rent a Car
Keep the final receipt. It shows the actual charge and confirms the hold should be released. If you used a debit card and the refund has not appeared after 10 business days, call the branch where you rented and ask them to trace it.11Enterprise Rent-A-Car. How Do Refunds Work With the Different Methods of Payment
If the Final Charge Looks Wrong
Sometimes the amount pulled from the hold doesn’t match what you expected. Common surprise items include fuel surcharges when the tank comes back less than full (typically billed well above local gas prices) and cleaning fees for smoking or excessive soiling.
Start with the rental branch directly and ask a representative to walk you through the bill. Most disputes get resolved there. If the branch won’t fix it, the FTC recommends reporting the problem to the company’s customer service department, to the Federal Trade Commission at ReportFraud.ftc.gov, and to your state attorney general’s office.1Federal Trade Commission. Renting a Car If you paid by credit card, filing a chargeback with your card issuer is another route.