Timeline for Receiving Your Rental Car Security Deposit Refund

In general, car companies can take up to 24 hours to release the security hold on your deposit after you return your rental.

Car rental service providers charge security deposits to protect the company from any damage caused during the rental period and cover unanticipated costs, such as cleaning a dirty vehicle or accommodating a late return. As long as you return the rental car in its original condition, you’ll receive your security deposit back in full. However, the time it takes to reappear in your bank account depends on several factors. This article explains more about rental car security deposits and how long it typically takes to be refunded.

How security deposits are calculated and paid

Rental terms vary between service providers regarding the cost and payment method of a security deposit. The amount you can expect to pay is often determined by the length of your reservation and the type of car you rent. Adding services like a car seat or GPS may also increase the total deposit cost. Typically, the deposit amount is paid upfront or ‘held’ on the main driver’s card during the rental period and refunded or ‘released’ once the car is returned.

After your rental, you must return to the rental provider’s office to request a refund of your security deposit. The deposit will be repaid using the same method (i.e., the same card) you used for the initial deposit.

Paying a security deposit by credit card

Charging a security deposit to your credit card doesn’t automatically deduct funds from your account. Instead, companies ‘hold’, ‘block’, or ‘pre-authorize’ the security deposit amount from your total credit allowance. This amount is held throughout your rental period and won’t be available to use until the car’s return.

After returning your vehicle, and as long as you meet the rental conditions, the car company ‘releases’ this fee. The time it takes for your security deposit to be ‘released’ depends on both the rental company and your bank. In general, car companies can take up to 24 hours to release the security hold on your deposit after you return your rental. After that, your bank can take 2–10 days* to release the credit card hold.

Paying a security deposit by debit card

Some car rental providers allow you to charge the security deposit to your debit card. It’s worth checking with the rental car company up front to see if debit cards are acceptable forms of payment for security deposits.

If you choose this form of payment, the total amount of both the rental and the security deposit will be deducted from your account. As with credit card payments, rental companies generally release the security deposit to your debit card within 24 hours of the vehicle’s return. Depending on your bank, the refund can take up to 10* additional business days to appear.

As with any debit card purchase, you’re responsible for overdraft fees incurred when charges exceed your limit. Be sure you have enough funds before paying with your debit card.

Paying a security deposit with cash

In rare and extenuating circumstances, car rental companies accept cash as a form of payment for security deposits. Cash payments are accepted upfront at the rental counter.

When you return your car, you’ll receive a refund in one of the following ways:

• By cash, provided at the return location.
• By check, mailed within 14–20 business days*.

When the refund amount differs from the deposit

If the refund you receive is less than the amount you deposited, there’s a chance you were charged for something - be it fuel replacement, vehicle damage, or a late return. If you’re unsure of the cause, refer to your rental receipt for more details or contact the rental company to review the charges.

If you pay the deposit using a foreign bank card or foreign currency, please note that the security deposit you pay at booking is also subject to current exchange rates. Prices are based on the pick-up and drop-off times and dates you reserve before your rental begins. As a result, the refund you receive may differ slightly from the amount you initially paid.

What to do if you don’t receive your deposit

If you’ve successfully met the rental contingencies and your deposit wasn’t returned to your account within 10 business days, contact the branch of the rental company you used to review any charges and confirm that your deposit was released. If they confirm the release, contact your bank.

*The above information is sourced from official rental car company websites.