In car rental, a security deposit is a sum of money that the supplier holds on to until the customer returns the rental vehicle. A security deposit can be held from a credit card but in some cases also from a debit or check card. Some suppliers accept cash deposits as well.
When the supplier blocks the deposit amount from the card, the funds cannot be used for other purposes until the vehicle is returned. In some cases, the deposit amount is released after a set number of days have passed since the vehicle is returned.
Security deposit is usually either a set amount or determined with a specific calculation method. The exact amount depends on various aspects, such as the rental time and length, the renter’s place of residence and the rental location.
- For cross-border rentals, the security deposit is equal to the purchasing value of the vehicle.
- The security deposit is equal to one day's rental fees, plus the excess amount applicable to your rental vehicle.