A driver's credit card is not charged at the time the car reservation is made unless it is prepaid, but most car rental agencies will place a hold on the card to insure that all terms of the rental contract are upheld.
Credit cards are not typically needed when making reservations but according to Budget, "some Budget locations may require a credit card (usually for high-demand cars or in instances where only one vehicle is available within a popular make/model), or may require prepayment of the entire rental to secure a reservation."
Most car rental contracts can be extended to accommodate the driver's needs but additional holds may be placed on the credit card to compensate for the expected rental charges. According to Budget Rent-A-Car System, one of the best-known car rental brands in business for over 50 years, the company may placed up to three holds on the credit card, but these holds will be released at the return of the car and only the actual cost will be charged.
If a driver needs to cancel a rental car, the individual's credit card will not be charged for cancellations made up to 48 hours in advance. However, like Budget's policy, some rental car agencies may assess a fee if the car is canceled less than 48 hours in advance.
For security reasons, all drivers must provide the car rental agency with a valid driver's license and a current credit card in their name.
