Debit VS Credit card

[N.Bailey]

Could someone answer a few questions for me concerning renting a vehicle.

1st off, we were going to drive to Orlando from centra PA, but with the great rates coming out, we've decided to fly instead.

I remember reading years ago that you couldn't rent with a debit card and I was wondering if this is true? Our debit card is used as a credit card (meaning we must say charge to use it), but it's still a debit card. My husband recently phoned our bank and he was told that it can be used for rental, but I still have my doubts.

I won't get a credit card because I'm the type who can't handle the credit. We fought years paying our cards back, then we cancelled every single one!!

We plan on going to Disney and US/IOA and we'd like to check out some of the shopping centers in the area, so we'd really need a car.

Can anyone offer me any advice? Thanks so much!

 

[ahilly]

N.Bailey-

you could use it to rent the car the only thing you need to watch out for is that the rental places a hold on a centain $ amount for the length of the rental (kinda like authorization) so if you need access to the funds that they are 'holding' you won't be albe to access them until the rental place releases the hold from your account. it kinda like when you give your debit or credit card for incidentials at a hotel - they authorize a $ amount and when you check out is when they actually charge whatever you charged on the room. hope that this helps.

 

[MickeyMac]

Also, the difference in the term 'credit' and 'debit' is for the merchant - they pay a fee when someone uses a card as a credit card, rather than as a debit card.

You also gain buyer protection when using it as a credit card.

Be aware, however, if a debit card is lost or stolen, there is very little beyond bank assurances that will protect you. With VISA or MasterCard, there is fraud protection. Make sure you do not keep you PIN number anywhere other than in your grey matter, and if it is lost, *IMMEDIATELY* report it.

 

[ducklite]

Not all rental agencies will accept a Visa debit card. Be sure to check with the one you select in advance to avoid unpleasant suprises.

Anne

 

[Jestocost]

Originally posted by MickeyMac
Be aware, however, if a debit card is lost or stolen, there is very little beyond bank assurances that will protect you. With VISA or MasterCard, there is fraud protection. Make sure you do not keep you PIN number anywhere other than in your grey matter, and if it is lost, *IMMEDIATELY* report it.

It's a common misconception that debit card users have no protection, but limitations on liabilities are clearly defined in the Federal Reserve Board's Reg. E:

"If the consumer notifies the financial institution within two business days after learning of the loss or theft of the access device, the consumer's liability shall not exceed the lesser of $50 or the amount of unauthorized transfers that occur before
notice to the financial institution."

The same protection applies if you notify your institution within 60 days of a statement date if you notice any unauthorized transaction on your bank statement.

Of course, MickeyMac is correct that you need to report any loss or theft of a card right away to gain this protection. Otherwise, you have liability for more $. In addition, banks sometimes need to be reminded of their responsibilities under Reg. E, so it pays to know your rights. The full text of the section on the liability of consumer for unauthorized transfers can be found here:

http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/cfr_2003/12cfr205.6.htm

 

[GAIL HAYDEN]

Originally posted by N.Bailey
Could someone answer a few questions for me concerning renting a vehicle.

1st off, we were going to drive to Orlando from centra PA, but with the great rates coming out, we've decided to fly instead.

I remember reading years ago that you couldn't rent with a debit card and I was wondering if this is true? Our debit card is used as a credit card (meaning we must say charge to use it), but it's still a debit card. My husband recently phoned our bank and he was told that it can be used for rental, but I still have my doubts.

I won't get a credit card because I'm the type who can't handle the credit. We fought years paying our cards back, then we cancelled every single one!!

We plan on going to Disney and US/IOA and we'd like to check out some of the shopping centers in the area, so we'd really need a car.

Can anyone offer me any advice? Thanks so much!

Alamo accepts debit cards with proof of a round trip ticket. They do not put an extra hold on the card, they do charge you the full amount when you pick up the car. Very easy.
Dollar runs a credit check, bad thing as it shows up on your credit report as an attempt to purchase a car, and if it does not pass their guidelines, you don't rent a car with them. They also put a hold on the price of the car plus 20%.
National will not accept a debit card at the beginning of a rental, but, will, at certain locations accept it upon return.
Hertz will accept it if you join their number 1 program.
Not sure about the terms.
Not sure about the others, but, the requirements are on the respective sites.

 

[k_hase]

I have rented on a debit card but won't ever do it again. It was with Thrifty.They told me that would have to deduct an additional $500 from my account until I returned the car and then it would be refunded, what they didn't tell me is that it takes 10-15 business days to process the refund (why I don't know) even though I was very clear in asking about the money being returned. I didn't realize what happened until I my debit card was denied at a gas station several days later, by then 4 checks had bounced and the nightmare was rediculous. The moral of the story is, get a credit card for the rental car, pay the bill when it comes and then cancel it if you really don't want the card.

 

[BrittnTylersMom]

We are renting (with a debit card) from Alamo for the reasons Gail has stated.
After looking over the debit card 'terms and conditions' of each rental company before making our reservations..I came to the conclusion that Alamo is definitley the easiest to use the card with!

 

[GAIL HAYDEN]

Yep, it sure is easy. Dee just used his and the entire process was totally uneventful.

 

[safetymom]

Hertz is very easy to use a debit card with. You have to be a member of the #1 Express or #1 Gold. The debit card has to be listed in the profile.

They hold $50 over the amount of the rental until the car is returned. I do this all the time and have never had a problem.

 

[N.Bailey]

Thanks for all your replies. It looks like we'll be checking out Alamo and Hertz.

 

[safetymom]

The agreement for the #1 Clubs say that debit cards aren't accepted. If you call they will tell you that they are accepted but they have to be listed in your profile. I do this all the time with no problems.

 

[kylara]

Another suggestion is that if you are really having a hard time with using your debit it to look into getting an American Express card...AMEX is not a credit card, it is a charge card and needs to be paid in full each month. Only downside, it has a high annual fee.