Rental Car and Debit Cards?

[bootc3]

Why do some rental car companies not accept debit cards? How do they tell the difference between a regular credit card?

 

[Beverly Lynn]

maybe because they don't feel its a real credit card since they can only charge it if there is money in the account. whereas a CC has a limit and they can put a hold on so much and know that they can charge the card. on a debit/visa so to speak if the amount they want to charge is not in the account then they can't charge it. (does this make any sense?)

 

[AllanJ]

Many rental companies still judge customers as credit-worthy and trustworthy because they possess a credit card. Normally you have to apply for and be accepted in order to have a credit card.

Normally you can get a debit card for the asking just by opening a checking account, which does not need any approval by a bank or third party.

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Incidentally my first credit card was sent to me when I was under 18 years old and without my asking although I had a checking account at the issuing bank.

 

[BobH]

I think they prefer credit cards because they can generally put a hold on a larger amount of money and they have a national organization (not a local bank) to help track you down.

 

[Dan Murphy]

I use a debit at National and have not had any problems nor questions.

 

[GAIL HAYDEN]

I use a debit card at National and Alamo and have never had a problem.
Banks do not give those out like candy, btw, a check card goes through a credit check and if you have had a bunch of bad checks or bad credit you won't get one.
They can tell the difference, in most cases, by the "check digit <nothing to do with a checking account> on the card. My bank does not have this "tattletale digit" and it goes through just like a normal Master Card.

 

[Jen D]

It is nice to know companies like Alamo and National have lightened up about debit cards. The fact is, if there is money in your account to cover it, there is no problem reserving the amounts reserved on credit cards. My debit card has a Mastercard logo. But I have experienced nothing but trouble at the big car rental companies using it.

I got rid of all my ccs but one, which is used for rental cars, since so many companies have a problem with the debit card.

 

[SJCSuzy]

I haven't used a debit card at any rental car company, but this was in the e-mail I just received from National:

Rules and Conditions

* Unlimited Miles
* A Minimum of 8 Day(s) will be charged.
* The Minimum Rental Duration is 8 Day(s).
* The Minimum Advance Booking is 1 Hour(s).
* Renter must present a major credit card in renter's name.
* Renter must meet minimum age requirements, 25 years of age
or older. In some states, this may be lower. Renter must
also have a clean driving record.
* Debit and check cards not accepted at time of reservation or
rental but, at participating locations within the United
States, may be used for payment at time of return.

 

[GAIL HAYDEN]

SJCSUZY,
You are absolutely correct about National, no debate there, however, my bank appears to have issued MC/debit cards that just clear the system quite nicely.
I even spoke with a CSR at National, made a mock ressie and my card sailed through (usually if the "check digit" goes off, you are done). Happy that my bank has them encoded the way they do. Sad for those who have banks that don't.

 

[sablair]

I emailed them and they said the Orlando Budget Rental car DOES accept debit cards!

 

[TravelSheryl]

I can assure you that it is just as much in your best interest as it is of the rental car company that debit cards should NEVER be used as a guarantee at a rental car company. If the rental car company claims you damaged the car even if you know you didn't, or if a ticket comes through and they trace it to your rental, your card could be debited without your knowledge.

I just read on CNN's website earlier this week where someone's debit card was debited $450 by a rental car agency in Connecticut, without his knowledge, because that agency (a local one, not a name brand) was using a GPS and tracking his driving habits. They tracked him speeding 3 times and debited his debit card $150 each time he was caught speeding. He's now suing them.

DON'T EVER USE A DEBIT CARD AT A RENTAL CAR AGENCY EVEN IF ONE IS ACCEPTED!!!! In fact, a debit card should never be used as any type of guarantee. It's like giving someone a blank signed check.

 

[GAIL HAYDEN]

Sherry,
I understand what you are saying, however, they can do the same with any credit card you have on file.
I generally only use debit cards as I don't like credit cards, the advent of MC/Visa check cards has been great for me, and my bank protects them the same way they protect credit cards.

 

[TravelSheryl]

There is no comparison to an unauthorized charge on a credit card vs. a debit card. Believe me, it happened to a friend of mine and it was a nightmare. He had numerous unauthorized withdrawals on his debit card which caused 15 checks of his to bounce before he found out, one of which was to a government agency. It's not cool to right a bad check to a government agency!! With a debit card, the money is gone and you are lucky if you can get it back, not to mention getting your bank to remove all those bounced check charges.

If you have unauthorized charges on a credit card, you simply dispute them.

I have never used a debit card and never will. I have one friend who loved using her debit card until she had an unauthorized charge that took her forever to get her money back. She cut up her card.

 

[Chuck S]

...is that under Federal Law, if your Credit Card is lost or stolen you are only liable for $50 in fraudulent charges, and charges are easier to dispute. There is not such protection for a debit card, even with a MC or VISA logo. The protection is between you and your financial institution. If your account is drained it is difficult to prove and dispute.

I have a plain ATM card that requires a code number, and credit cards. When the bank sent me an ATM/Debit Card combination, I inquired as to protection, and was switched back to a standard ATM. Most (but not all) stores that accept debit cards also accept standard ATM cards requiring the code. There is usually a use fee for these transactions, so I just use my credit cards or write a check.

 

[GAIL HAYDEN]

Chuck,
I guess it depends on the bank. As I said, mine protects the check/debit/MC (whatever the he** it is called from bank to bank.) the same way as they protect a credit card. I did read the fine print and after having been in banking and mortgages for too many years to count (before I got my head together and am doing something I love) I am totally sure of what it says, what the conditions are and what my recourse is.
Yes, you can dispute a credit card charge, but, if that does not always work either. You have to have a good reason and documentation up the kazoo to get one to stick.
I have disputed charges on my check/MC/debit card a couple of times and it has been taken care of immediately. Most of them, btw, were through Paypal via ebay.
There is a lot of panic about these cards and the banks are working on getting them to be treated as credit cards, I am sure in the very near future most, if not all, will treat them as credit cards and protect them from purchases that are not authorized.
As to bouncing checks, never an issue for me, I check everything daily online. Also pay my bills there also.
Lucky, no. Read everything, yes and pick my financial institution wisely.

 

[AllanJ]

>>>> ...and the banks are working on getting them to be treated as credit cards, I am sure in the very near future most, if not all, will treat them as credit cards and protect them from purchases that are not authorized

No they ain't.

If the banks want debit cards to be more accepted by the public they will get rid of the fine print, handle disputes as if the cards were credit cards, put the money back into the account during the dispute, cancel the bounced check charges, and even pay for interest and penalties that the recipients of bounced checks imposed on the cardholder/account holder.

I, too, was offered a combination debit and ATM card for my checking accounts by two different banks. Both times I specifically asked to have the card be ATM only, requiring a PIN.

It is the merchant/seller's responsibility to prove that a purchase was authorized. If a charge is totally bogus, the cardholder is not going to have any documentation.

Also, taking money and delivering nothing in exchange is fraud. A credit card transaction may be disputed if no goods or obviously different goods are delivered regardless of what state the seller is in or how far from the buyer the seller is. Since the credit card company actually imposed the charge and/or took the money, it is in the loop (involvable) as far as disputes are concerned.

If you win a disputed charge, the credit card company should adjust finance charges on an "as-if" basis, not a "prorated" basis. For those cardholders who pay off the entire balance and avoid finance charges, the "as if the dispute charge never existed" computation usually yields no finance charge while the "prorated between the disputed charge and undisputed charges" method yields "some" finance charge! You the cardholder will have to point this out. Now aren't you glad you didn't sleep through all your high school math classes?

 

[sablair]

I lOVE my debit card! It keeps me out of debt I had an unauthorized charge from a florist when I sent my Mom flowers on Mother's Day. It was no prob getting it fixed. Whoever submits the charge has to give my bank very specific info in order to submit the charge. The bank called right away and straightened it out. I also had a charge from amazon.com that they were taking forever to correct..wrong amount.. there are clear actions to take concerning this. It may be a hassle, but I think it's only a hassle concerning time. That's why there is more credit card fraud than debit card fraud.. it's harder for someone to get through the banks security (at least mine) with the debit.

 

[MikeP]

I love my checkcard/ATM card also. I haven't had a disputed charge yet, but I did have a situation where Tom Thumb debited my account twice for the same purchase. It was resolved within a couple of days. I am also rather anal about my checking account so I do check every day online to see what has cleared my account, so if a problem was to arrise I would be able to address it rather quickly.

 

[GAIL HAYDEN]

I guess it all boils down to doing and using what works for you and is comfortable for you.

 

[Ronda93]

Last fall I left my debit card behind on the counter of a sporting goods store. At 10:00 that night someone started spending... $450 at Target (two transactions) and $60 over three transactions at a local gas/convenience store.

I realized it the next morning (a Saturday) and started with the bank. I identified the charges which were not mine. They opened a fraud case and we were off. The money was not placed back in my account for six days (that Thursday). I was not held responsible for $50. I contacted the store where it had been left and they went to the video. They said it was inconclusive, but I believe that the cashier retained the card and began to use it after the store closed that evening. An lucky opportunist in line behind me would have started using it right away, not four hours later.

The swipe-it-yourself method used at so many stores now keeps anyone from verifying the signature (not that it would have helped).

I got a new debit card. I still use it around town, but I would never use it for anything that had a contractual obligation on my part (rental cars, hotels). They can crush your checking account and at my bank disputed (as opposed to fraud) charges are fully investigated before a credit is issued (grocery store double dipped a couple of years ago... luckily a small amount, and the only time that's happened).

I still act like it's a check... local.