When it comes to renting a car abroad, there are several things to take into account. Firstly, the type of vehicle that you would like – is it just a small, compact car that will be as suitable for motorway driving as it will be for city centre driving, or do you need a larger vehicle, perhaps more suited to a family, if you are taking your family on holiday? You may even wish to hire a sports car or a luxury vehicle for the ultimate holiday experience.
Depending on your choice of car, this can incur different expenses – sports and luxury vehicles are generally more expensive than small, compact cars, for example.
So, how do you plan on paying for your hire car when you get there? There are several ways to do so – while you may presume that all car hire companies only offer payment via credit cards, this is not always the case.
In this article, we will explore all of the alternative payment methods that you can use next time you would like to rent a car without a credit card.
Why Do So Many Car Hire Companies Require Credit Cards?
For starters, credit card transactions are generally much more secure than transactions made by other cards (such as debit cards and prepaid cards), and as a result, they act as a safety net for car rental companies.
This is because the customer has acknowledged that they have enough funds to cover the deposit amount – and the amount is temporarily held from their credit card.
If anything should go wrong during the rental process, the car hire company can simply deduct more from the amount already held via the customer’s credit card. For instance, should the customer pick up a speeding ticket or a parking fine during the car rental process, then this amount can simply be added to the deposit, or rather deducted from the temporary amount held on the customer’s credit card.
Alternatively, if customers pay via a debit card (as an example), any driving-related penalties or fines that they incur during the rental period will have to be paid at the end when they return the car via their debit card again. The issue with debit cards is that the customer may not have the additional funds to do so at the current time, which can create a difficult situation for both the customer and the rental company at the same time.
As a result, this is why credit card transactions are generally preferred over debit card payments (or any other form of payment) for car rental companies.
Using Debit Card Payments for Car Rentals
As mentioned above, debit card payments are another form of payment for a car rental that does not involve using a credit card, and they are the second most popular form of payment behind credit cards.
The primary advantage of using a debit card to pay for a car rental over using a credit card is that you can save lots of time and hassle doing so. For example, you do not need to go through the process of a credit check, nor do you need to wait for a credit card to arrive if you have ordered one in advance.
How Do Debit Card Payments Work for Car Rentals?
Much the same as a credit card payment, debit card payments for car rentals work the same way. The hire amount and security deposit will be taken from your debit card at the beginning of your rental agreement.
Upon the safe and complete return of the vehicle at the end of the rental agreement, you will receive your full deposit back. However, be aware that sometimes refunds can take up to 10-15 working days after the rental payment agreement has ended, so if you have any other upcoming important bills or payments due, then you must have sufficient funds in your current account (the bank account linked to your debit card) to pay these, while still missing a significant chunk for the car hire deposit.
Furthermore, paying via debit card can sometimes incur several charges. Many car rental companies charge extra for debit card payments, while others will only allow you to choose from compact cars and very occasionally family vehicles if you opt to pay via a debit card, so you will likely not have access to the full selection of vehicles when paying via debit card.
Finally, if you do not inform your bank that you will be using your debit card abroad, you can be subject to foreign transaction fees, so make sure to alert your bank before going abroad if you plan on paying for a hire car in a foreign country with a debit card.
Using Prepaid Cards for Car Rentals
While less popular than debit and credit cards, using a prepaid card is another way that you can hire a car without a credit card.
These cards typically encompass vouchers, or cards such as Revolut, which can be loaded with money beforehand, so that you can avoid foreign transaction fees.
Prepaid cards are a less popular choice than debit cards, and many suppliers around the world do not accept them as a suitable payment method for car hire, so it is always worth checking with individual suppliers before committing to this method.
How Do Prepaid Cards Work for Car Rentals?
Similarly to debit cards, prepaid cards will be charged a set amount, and any extra charges incurred from driving-related penalties or damages to the car during the rental process will have to be paid at the end of the agreement, once again, meaning that you must have sufficient funds to be able to afford this come the end of your car rental agreement.
In addition, many suppliers who do accept prepaid cards will not accept them for the security deposit, which generally has to be paid by either a valid credit card or a debit card, which must be in the main driver’s name.
It is also worth bearing in mind that the named driver of your party must have the prepaid card in their name if this is the payment option that they are going to choose.
Using Cash Payments for Car Rentals
Another form of payment for car rentals is by using cash. While most car hire companies are cashless in most locations, there are still a few locations worldwide which accept cash as a method for hiring a car.
These places tend to be in countries where cash is still used more than other forms of currencies – and different suppliers might accept different currencies, particularly in countries such as Turkey, where the Turkish Lira, Euro and Pound Sterling are all accepted.
How Do Cash Payments for Car Rentals Work?
Like many of the prepaid card options, customers are typically limited on which selection of vehicles they can choose from, as well as the fact that a valid credit or debit card in the name of the primary driver in the party must be presented for security deposit purposes.
It is also worth taking into consideration that in many countries, carrying large amounts of cash around is inadvisable, and can even be deemed dangerous in some instances, so make sure that you are very careful if you are carrying large amounts of cash on your person if you are planning to pay for a rental car with cash.
How To Rent a Car Without a Credit Card
Once you have selected your preferred method for paying for a car rental without a credit card, you will need to take a couple of things into consideration.
Firstly, choose to do your research – it’s important to check local policies with different companies to make sure that alternative payment methods are still accepted. For example, some companies only accept credit card payments in countries such as the UK and USA, but those same companies accept cash or other alternative payments in countries such as Greece or Sri Lanka.
You should always check just before you go so that you can have the most recent, up-to-date rules and regulations surrounding car hire in different countries – while some companies may currently accept cash payments in certain countries, they may not accept them in six months, or whenever you plan on next visiting the country of your choice. Checking in advance like this can seriously reduce your risk of disappointment.
Overall
Overall, there are several ways in which you can rent a car without a credit card.
There are options such as debit cards, which, while convenient, can sometimes reduce the type of vehicle that you can hire, so if you want a car such as a sports car or a luxury vehicle, then debit card payments may be unsuitable.
Similarly, prepaid cards and cash payments are rarer but still accepted in many locations worldwide. These can be ideal for the frequent traveller, or for those who would like to get rid of a large amount of cash in foreign currencies.
Whichever method you choose for your next car rental, check out the range of availability here at Holiday Cars for the very best exclusive car hire deals.