The holidays are coming. You will start to see bank recommendations flourish regarding the type of card to take with you on the go. Often during the summer, you will resort to the rental of vehicles, equipment, and others.
Where can you find the level of your bank card?
Usually, this information is on the front of your card, often below the card numbers. Some banks have preferred to write crosswise, close to the edge of your card. Fintech or American Express is sometimes on the back of the card that the information will be there. Some Fintech has retained the writing directly in the hologram. We let you discover where Revolut indicated the mention “PREPAID”. We help you a little; it’s on the back of the card in a tiny bit.
DEBIT or CREDIT to rent a car?
Don’t you have time to read the general conditions and all the exclusion situations allowing you to use a “DEBIT” card? So get a “CREDIT” card for rentals. You will avoid unnecessary waste of time with rental companies. Sometimes, the need to hold a “CREDIT” card is indicated in the company’s general conditions.
Some rental companies accept “DEBIT” cards. But some are often in the exclusion list, for example, everything associated with systematic authorization with balance control. Rental companies know that “DEBIT” cards issued by traditional banks do not retain the deposit amount on your account, so they accept this card category.
Why apply for CREDIT cards?
A quick reminder: when you pay by card, the merchant never has the money immediately, and you are never actually debited from your account. When the payment terminal indicates “Payment Accepted”, the merchant holds a debt instrument, so he must then claim this money. It is only then that you are debited and credited to him. In general, traders do this second step on D + 1 working day.
This second stage of payment (the payment request) must normally be carried out within seven days if the card is in “DEBIT,” and it can go up to 45 days if the card is in “CREDIT”. The rules of the networks are thus defined everywhere in the world.
If your card is in “DEBIT” and if the merchant requests compensation ten days after your payment, he may then be exposed to a rejection of the payment on the grounds of “late presentation”. It will be out of pocket, unless you know you and invite you to come back and make a new payment.
Fintechs generally release escrows 7 to 10 days after your payment because if the funds are not claimed, they consider that the merchant will not do so afterward. There is, therefore, no interest in waiting more than eight days to release a transaction.
How does the deposit system work?
The average amount of a deposit is often $ 1,000 / 1,500 for a passenger vehicle. It is significantly lower for light vehicles. The deposit would be used to compensate for the vehicle’s damages. Therefore, the lessor can use all or part of this amount to debit you in the event of damage (s).
He makes a pre-authorization request with your bank, which will be linked to the agreed amount. You will then obtain a payment receipt on which the information relating to this file will be recalled.
Once the file number has been obtained, he will close the pre-authorization (because no debit necessary), carry out a partial or total debit if there is a claim or penalties to be levied for the rental.
When the landlord or the hotelier closes the pre-authorization file, he gives you an abandonment ticket, which reminds the amount of the initial authorization and the words “PRE-AUTHORIZATION CLOSURE”. If he has debited part of the authorization, you will have a new receipt showing the amount debited. Your card is no longer necessary to partially or fully debit or cancel the file.
What to do when the lessor refuses a “DEBIT” card, or the pre-authorization is refused?
If the lessor imperatively wants a card with the mention “CREDIT”, the only solution will be to manage the deposit in cash with the latter. The rental companies have procedures to manage cash deposits; this liquid will be returned to you when the vehicle is returned.
If the pre-authorization is refused (in DEBIT as in CREDIT), you will have to contact your bank. The latter can tell you if it is a problem with the ceiling or something else.
Note that some banks in “DEBIT” require that the amount of the deposit is available on the account, failing which, they respond negatively to the lessor’s request. This behavior (dispose of funds) is mandatory in Fintechs, freezing these funds after authorization for several days.
How to get a card with the mention “CREDIT”?
We invite you to read the article on how credit cards work to better understand how these cards work and to familiarize yourself with the versions available.
The first method to obtain a card with this mention is to ask your bank. It can either offer you a deferred debit card; it will then be marked “CREDIT”, or a card associated with revolving credit will be stamped “CREDIT”.
Is it possible to cheat or lie on the map level?
The information “DEBIT” or “CREDIT” is printed on your card, but it is also programmed in your bank card chip.
In the memory of the chip, there is coding to indicate what the type of the card is:
- FLOW
- CREDIT
- COMMERCIAL
- PREPAID
So the rental company’s software can check this once the card is inserted, but not only that. An international base exists to identify cards using the first 6 or 9 digits; we speak of BIN / IIN. It is mainly this device that is used to detect the level of your card. Scratching the mention or covering your card with a sticker will not allow you to deceive the rental company.
Looking to rent a car in Karachi? Carlay Car Rental offers outstanding car rental services at a reasonable cost and all of the required services to make our customers’ rides more enjoyable.
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