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Why Do You Need A Credit Card To Rent A Car

Author: Mohamed Fareed
by Mohamed Fareed
Posted: Aug 11, 2021
debit card

When a rental car is involved in an accident, the repairs could cost the rental business more than the security deposit left when the renter picks up the key. If the renter receives a speeding ticket, a parking ticket or a fine for failing to pay a toll, for example, the penalty may take months to reach the rental business. This is why most rental agencies accept credit cards for deposits but not debit cards. It’s a regular source of annoyance for travellers, but it’s almost unavoidable: renting a car requires a credit card.

What Do You Need To Know?

Unlike a debit card, a credit card might serve as a support system for the rental firm. It enables them to set aside a deposit as insurance if something goes wrong during the rental period. The deposit, which isn't taken out of your account, allows them to collect repair fees or other outstanding traffic fines quickly. Businesses prefer credit cards because they demonstrate that you are not a financial risk; their costs will be covered because they can reclaim a portion or all of the deposit if necessary.

If the corporation has inadequate finances, it cannot use a debit card to withdraw money from a bank account. On a debit card, there is also no option to block a specific amount. So if you have sufficient money in the account to cover the deposit, the automobile rental company will have to remove the entire amount and then reimburse it later.

Why Is Renting A Car Using Debit Car Difficult?

Isn't the list of additional requirements somewhat frightening? However, why are rental companies making it more difficult to rent with a debit card rather than a credit card?

In other words, when you rent a car Abu Dhabi with a debit card, the rental company is taking a bigger risk. Even if the driver is not present, the rental company can charge for extras like parking tickets, fines, and minor scratches using the credit card information. However, with a debit card, this is not possible because the PIN is required to make any changes.

That implies that if the rental company receives a parking ticket after you've returned the car, they won't be able to charge you because they won't utilize your credit card information.

The credit card would be used to pay for the rental car and place a credit hold known as a security deposit. The rental firm may require a deposit nonetheless, but if you pay with debit, the money will not be available for other purposes, such as travel expenses. This is a crucial point to keep in mind when you rent a car in Abu Dhabi.

In general, if you have a credit card, you should use it. For some people, using a debit card may be more convenient. Still, given the additional documentation and personal information required, it appears that using a debit card isn't such a good deal after all.

If you still believe that using a debit card is the best option for you, check what additional documents some of the most popular rental companies require. This is the main reason why most companies allow you to rent a car in Abu Dhabi only with credit cards.

About the Author

Fareed is a graduate of computer science engineering, a writer and marketing consultant. he continues to study on Nano technology and its resulting benefits to achieving almost there.

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Author: Mohamed Fareed
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Mohamed Fareed

Member since: Feb 11, 2017
Published articles: 1463

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