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Credit Card and Security Deposit: The Guide to Understanding Pre-Authorizations at Car Rental Agencies
March 14 2026
Credit Card and Car Rental: Why Is a Guarantee Required?
This question applies to most rental agencies. Whether it’s an apartment, professional equipment, or, in our case, a vehicle, a guarantee is required. Its main purpose is to protect the rental company in case of unforeseen events. For example, you might damage the vehicle or return it late. In such cases, the security deposit covers the costs incurred by the agency.
Think of this guarantee as a temporary financial insurance, which also simplifies administrative procedures: the agency can directly recover the costs without complicated paperwork.
Security Deposit, Guarantee, Pre-Authorization: Are They the Same?
People often confuse “security deposit,” “guarantee,” and “pre-authorization.” In car rental, these three terms generally refer to the same concept, with some nuances:
Security deposit: The amount blocked by the agency during the rental. “Blocked” does not mean “charged”—if you return the car without issues, no money will be deducted from your account.
Guarantee: A more common term, less precise legally than a security deposit, but it also refers to a sum of money reserved by the renter.
Bank pre-authorization: The procedure used by the rental agency to block a certain amount on your bank account. In practice, it also refers to the amount itself.
How Does a Bank Pre-Authorization Work?
At CarGo!, a pre-authorization request is made on your credit card at the start of the rental. You must present the card used for booking, and here’s how it works:
The payment terminal checks with your bank to ensure sufficient funds are available to block the deposit.
The amount is blocked (but still visible in your account). Note that pre-authorization reduces your available spending limit.
The funds are released after the vehicle is returned (within a maximum of 3 months) if no issues are detected.
How Much Can Be Blocked During a Car Rental?
It’s hard to give an exact figure for pre-authorization as it depends on several factors:
The value of the vehicle (the more expensive the car, the higher the deposit).
The vehicle category (utility vehicle, passenger car, etc.).
Optional services purchased at the time of rental (e.g., extra insurance).
At CarGo!, the deposit amount is clearly stated in the rental contract—so there are no surprises.
Which Credit Cards Are Accepted and Which Are Often Refused?
Not all credit cards allow pre-authorization. At CarGo!, we generally accept:
Visa and Mastercard, debit or credit cards.
Cards in the name of the primary driver.
Refusals are usually linked to system-authorized cards (Electron or Maestro) and most prepaid cards. A card with a low limit may also be automatically refused.
Are There Questionable Practices Among Rental Agencies?
Some people hesitate to rent a car because some agencies have less transparent practices regarding pre-authorizations. Common issues include:
Lack of information leading to a card refusal at pickup (insufficient card limit).
A high amount blocked without clear explanation.
Excessive delays in releasing the funds.
Fortunately, not all agencies operate this way. CarGo! promotes transparency, explaining deposit amounts at the time of booking and providing clear terms for franchises and insurance. Our team is also available to answer any questions to prevent pre-authorization from becoming a surprise.
How to Avoid Problems with Bank Pre-Authorization
To avoid issues, follow these best practices:
Check your credit card limit, usually calculated over a rolling 30-day period.
Avoid making large purchases with the card used for rental.
Use a card in the primary driver’s name.
Contact CarGo! customer service for clarification if you have doubts about your card.