To take possession of a rental vehicle, the main driver must systematically provide the rental company with a credit card in his name and surname.
Why Do I Need A Credit Card To Lease A Vehicle?
Before lending a vehicle, any car rental company wants to obtain financial guarantees to cover the risks it takes with its customer. The lessor wants to be sure they can:
- Pick up your vehicle at the end of the agreed rental period.
- Be compensated for any damage caused to the vehicle.
- Be reimbursed for fines for traffic offenses committed by the driver.
For his part, the customer wants to rent a car without paying a deposit of several thousand dollars – a large sum that he usually does not have with him, or even in his bank account.
To solve the equation, car rental companies rely on credit cards.
A Credit Card Is a Reserve of Money or a Deferred Debit
In most countries of the world, a credit card is backed by a reserve of money granted by a financial institution to the cardholder after analyzing his financial situation. In the event of use, the cardholder and the cardholder’s repayment terms are set by the underlying credit agreement.
A credit card is rather associated with a bank account, and the issuing bank sets a monthly limit for use. Payments made are debited from the account at the end of the month in one go. This is what we refer to as the’ deferred debit card.’ Make sure that the CREDIT mention is present on the front of the card. Business cards bearing the COMMERCIAL mention are assimilated to credit cards even when payments are debited on the fly.
Thanks to the “Payment for Rentals of Goods and Services” (PLBS) credit card mechanism, a merchant can:
- Request a pre-authorization of payment without drawing on the credit line or debiting the bank account
- Receive in return a payment guarantee of up to 115% of the pre-authorized amount valid for 30 days
- Claim additional amounts up to 30 days after receipt of the pre-authorization.
By requiring the driver to provide as a deposit a credit card in his name and first name with a pre-authorization of payment at least equal to the amount of the excess remaining at his expense in the event of an incident, the rental company secures the loan of the vehicle without the renter’s cash advance.
How to Book a Car Rental without a Credit Card for the Deposit?
The Reservation with One Card, the Deposit with Another
The credit card number to be indicated when booking a car rental is used to prepay this rental price or to guarantee that the cancellation conditions will be respected. This payment can be made using a payment card of any type (debit card, credit card, prepaid card).
However, the driver must always present a credit card in his name and surname to take possession of the vehicle.
The driver can use the time that separates a reservation made in advance from the first day of rental to order a credit card from his bank.
Add a Second Driver
Depending on the rental agencies, additional drivers may be designated in the vehicle rental contract with or without additional charge. Only the main driver must provide a credit card in his first and last name.
Therefore, the driver without a credit card can be accompanied by a third person holding a driver’s license and a credit card in his name and first name who will collect the car as the main driver, the driver without a credit card registering as the second driver.
Take Out Insurance with Deductible Buyback
Some car rental agencies offer an insurance contract with no excess payable by the tenant in an incident. In this case, the driver is usually exempt from providing a credit card.
Please note, the cost of such insurance is often as high as the price of the vehicle’s rental.
IF you are going to rent a car in Islamabad, you can contact Carlay Car rental. They provide the best car rental services in Pakistan.