Renting a Car for Summer Travel: Can You Pay Using a Prepaid Debit Card?

If you must compare two things that don't mix during a down economy, it's in the process of renting a car when that prospective renter's credit isn't perfect or who doesn't have a credit card at all due to chucking what caused financial hardship in the first place. Anybody who's rented a car before without being in possession of a credit card knows that it's generally considered impossible to rent a car without one. And those well-versed in travel today will tell you it's no different. For the most part that may still be true. But rental car companies know that if they don't accept any alternative forms of payment, more than half their business will be gone in a second.

Because rental car companies arguably make the majority of their income during the summer season, they should be advertising the idea that having a credit card to rent a car isn't necessarily their only payment option.

They can't do that, though, because they're basically stuck in a quandary about how to cope with the economy and still have a safe method of loaning out a car to the American populace who temporarily want different wheels from their own. The truth is, however, that rental car companies are opening up to alternative forms of payment of late, despite it being something you only discover once you call to make arrangements to rent a car. For many people, it creates a disconcerting situation in feeling ashamed they don't have a credit card or putting them in a bind when on a tight travel schedule.

Well, those of you planning to rent a car soon should know ahead of time that many rental car companies are now taking alternative forms of payment in the form of debit cards, prepaid debit cards and straight cash. Yes, I know that sounds hard to imagine when a car rental company loans out cars worth $30K every day with a million crooks wanting to take it on a nice long road trip before abandoning it over the Grand Canyon. As with the process of haggling during economic downturns, you should know most car rental centers are in the same mood now that they realize many people don't want to or can't use a credit card.

Negotiating is always an art form and knowing things in advance always helps persuade the person you're doing business with to provide you with what you want. It's no different with car rental facilities where your personal knowledge of what they'll allow will be the successful byway into renting a car without a credit card.

Keep in mind that obscure car rental companies will more than likely take a prepaid debit card or even cash from you at the start without any negotiating, especially if said business is one that rents older cars not worth half as much as a newer one. Nevertheless, since you'll more than likely go to Hertz, Avis, Enterprise or any of the other big names to rent a car, below are a few first steps you should take when attempting to rent a car from them without having a single credit card under your name:

1. Don't tell the employee at the counter at first breath that you don't have a credit card. You'll get an automatic rejection from them and possible explanation as to why a credit card is needed in order to insure the vehicle, even though you should know that already. Ask them straight up if they take prepaid or regular bank debit cards as a method of payment. The reason you can ask that up front is because...

2. You'll already have several pieces of I.D. on you that rental car companies will ask for in order to ensure you can use a debit card over a credit card. Yes, if time is a factor, be sure to bring a utility bill, present your driver's license and even show proof of prior good credit if you used a credit card at one time.

3. Once the rental car company sees that you were prepared and a reputable person, they'll be more apt to trust you and let you rent a car. But know that you won't be able to rent a SUV or overly expensive car with just a prepaid debit card, no matter how much negotiating you do. Don't go in thinking you're going to be able to rent that Lexus for a couple of days without having a credit card in hand first. Be modest and know ahead of time that renting a more moderately-priced car isn't going to ruin any trip.

Some more things to know ahead of time...

Car rental companies actually allowed prepaid debit cards at one time and then stopped because of so many high-risk renters coming in with bad credit. Once car rentals started losing business because of it, they went back to allowing debit cards, though with one exception: Doing background checks on their customers. For debit cards, that means the process of the hold. What that means for you is that while you can perhaps reserve your vehicle and pick it up with the procedures I mentioned above, your debit card will be more or less frozen while the car rental facility checks to make sure you really have the funds on your card to pay deposit fees.

It might be a little easier if you have a prepaid debit card with the VISA or Mastercard logo on the front. From my experience, most holds on those cards can take up to a few days at most. Some cards, however, can take up to as much as two weeks. In that regard, be sure to have alternative forms of payment if you're planning to use a debit card on your little (or prolonged) road trip. When the debit card is on hold, you won't be able to use it for anything until it officially gets approved.

If you can get through those hurdles that might also involve extra fees for inconveniencing a nationally-known car renter, you'll be happier to know one thing they won't deny: The use of your prepaid debit card or cash to pay your final bill after returning the car.

Once you can establish trust early with your car rental facility, you don't have to worry about credit cards at all. Despite that, even if you do use a credit card to more conveniently reserve and obtain a rental car, most to all of the rental facilities won't force you to use it as payment and merely as proof of your good name. And while people slowly abandon credit, credit cards may just end up being a new equivalent of an I.D. card rather than a vessel of getting further into debt.

Source:

http://www.creditcards.com/credit-card-news/rent-car-debit-credit-card-1276.php