This information is provided in summary form and you should conduct your own research before using any of the companies listed.  Information is subject to change at anytime.  (Emphasis added)

From the Hertz FAQs site:

Debit Card Policy-

Q: Can I use my Debit Card or Bank Card to reserve a Hertz car?

A: At most Hertz locations, debit cards (sometimes called check cards) issued under a VISA or Mastercard logo which draw funds directly from the cardholder’s account may be used to qualify for rental. However, prepaid or stored value cards which have a VISA or Mastercard logo are not accepted to qualify for rental. Debit cards must have available funds for the estimated amount of the rental charges plus a reasonable amount to cover any incidental charges in order to secure the rental. Both debit cards and prepaid or stored value cards issued under a VISA or Mastercard logo may be used as a form of payment when you return the vehicle. Please contact your local Hertz Reservations Office if you have a question about whether Hertz will accept a certain card.

Cash Policy-

Q: What can I do if I do not have a credit or debit card in my name?

A: Cash Rentals are accepted with a Cash Deposit ID Card. Applications for a Cash Deposit ID Card are available from your local Hertz Office. Applicant must be 18 years or older and the application process takes approximately 30 days. There is a $15USD nonrefundable processing fee. A Hertz Cash deposit ID Card may be used at a Hertz Location.

From the Enterprise Website-

Debit Card Policy-

Debit Card:

Some locations will accept a debit card for a rental deposit and/or payments. To be valid, a debit card must have a Visa or Mastercard logo.

Airport locations that are able to accept debit cards will require return trip itineraries.

Most local renters who would like to use a debit card for their deposit may need to complete a cash qualification process. The branch may ask for you to bring in two valid, current utility bills and your most recent paycheck stub.

It is common that a rental branch will require your drivers licence to be issued in the state you are renting.

We are happy to help you with policy information specific to the renting branch. Please contact us ahead of time to determine what is needed when renting with a debit card.

Cash Policy-

Cash:

For security reasons, our locations do not accept cash. We apologize for any inconvenience.

From the Avis FAQs-

Debit Card / Cash Policies-

Debit Card Policies

Avis reserves the right, in its sole discretion, to seek a Debit Card authorization hold in excess of the estimated rental charges. When using a debit card at Avis, there may be a minimum hold of $500 and a maximum hold of the estimated rental charges will be placed on your account.

Upon returning the vehicle, Avis will process a release of the unused portion of the hold subject to your bank’s procedures. The hold may take up to 2 weeks to be released by your bank.

If you fail to return the vehicle as agreed, Avis will obtain additional authorizations from your account to cover the rental charges.

Avis is not responsible for any returned checks or over-drafts based on this policy.

This policy applies to both U.S. residents and foreign renters.

Positive identification in addition to your driver’s license may be required.

In the United States, debit, cash or check cards can be used at the end of the rental for payment of rental charges. For acceptable credit identification and payment methods in countries outside of the U.S., please search for the specific location.

From the Budget Website-

Debit Card Policy-

Credit and Debit Card Rules

Generally, at the time of a U.S. rental, we’ll require a credit card hold of total estimated charges plus 25% or $200, whichever is greater. If you’re using a debit card at a location that accepts them, we’ll require a hold of total estimated charges plus 25% or $300, whichever is greater. However, for insurance/service replacement rentals and tour rentals, the minimum debit card authorization hold is $100. At select locations in the Northeast and North Central regions, the minimum authorization hold is $500. Renters under 25 years of age may not use a debit card. Look at the terms and conditions on your reservation confirmations for the deposit required at your specific rental location. Some select locations do not accept debit cards at time of rental to release the vehicle, but do accept debit cards for payment at time of car return.

Cash Policy-

Can I pay with cash?

Yes. Your deposit type, amount and method of payment will vary by Budget location.

From the National Website-

Debit Card Policy-

Debit Cards

When renting in the U.S., debit and check cards may only be used in conjunction with proof of a round trip travel ticket (airline, cruise ship or train) at time of rental.

A debit/check card is considered to be any non-credit card bearing the VISA, MasterCard or Discover Card logo.

Any other non-credit card without the VISA, MasterCard or Discover Card logo is not accepted.

For pick-ups in the United States, without proof of roundtrip ticket, debit or check cards are only accepted when returning the vehicle.

A credit card in the name of the renter must be presented at the time of pick-up.

Cash Policy-

Cash Rentals

Customers must meet National’s requirements for renting a vehicle without a credit card.

Only Economy through full-size vehicles can be rented with cash.

No Additional Drivers are allowed on Cash Rentals.

All cash rentals, including prepayments, vouchers, and the like will require a deposit of $300 per rental, in addition to the pre-calculated rental charges.

When the rental vehicle is returned in accordance with the rental terms and conditions, the cash deposit will be refunded upon return of the vehicle, and in some instances, the refund will be mailed to the customer following the return of the rental vehicle.

Summary:

Almost every major rental car agency WILL rent a car without a credit card.  Most, however, will place a “hold” on your debit card for the full rental price, plus, in most cases, an added deposit.

When it comes to payment, most will accept a debit card as payment when you return the automobile.  Available options appear to be:

A) Reserve the car with a company that allows you to use a debit card.  If you do this, be sure that you bank account has a sufficient amount to cover the deposit, the hold, and any other charges that you might incur.

B) RESERVE the car using your credit card and PAY for the car rental using cash or your debit card.

While I do not use a credit card to make purchases, I do carry one in my wallet.  If necessary, for the security of my family, I would use the credit card to reserve a car and then pay cash for the rental when I returned the car.

Before renting an automobile, understand a company’s policies.  Do your own research and call ahead if you have questions.  While I was compiling this information, I did not take into account ANY insurance-related policies.

Follow me via Twitter

Can I Rent A Car Without A Credit Card?

Are people falling in love with their debit cards?

During the quarter ending December 31, 2008, people made $203 billion in purchases using their Visa credit cards.  During that same period, people made $206 billion in purchases using their Visa debit cards.  (You can read more by viewing Visa’s latest SEC Filing.  These figures are for U.S. purchases only.)

Also, during the year 2008, the number of credit cards in use rose 2%, from 706 million to 813 million, as compared to the year 2007.  Over that same time, the number of credit cards in use rose 14%, from 795 million to 905 million.  (These figures appear to be for world-wide use.)

Either way you look at it, debit cards are becoming more popular.  I stopped using my credit card four years ago, and I do not miss it.  I’ve managed to reserve hotel rooms with my debit card, and I’ve even researched how to rent a car with a debit card.  My current bank treats debit card transactions with the same security as credit card transactions.

As debit cards become more popular, I’m sure that debit card-related fraud will increase, as well.  Such is the nature of how the world works.  No matter the system, or mechanism for transferring money from one party to another, there are those who will find ways to manipulate that system or exploit that mechanism.  Keep this in mind when you use your debit card.  Be careful.  Be mindful.  Be smart.

I am not sure if this move towards debit cards is short term – driven by the recent downturn in the economy – or long term – signaling a move away from credit and towards paying with cash-on-hand.  It will be very interesting to take a look at Visa’s next SEC filing, to see if this is a trend, or a one-time blip.

What about you?  Are you using your debit card more than you used to use it, as compared to your debit card?  What are you worries when you use your debit card?  Do you use your debit card for online purchases, and if you do, do you feel comfortable when doing so?  Do you know your bank’s debit card security policies?

Follow me via Twitter

Visa Debit Cards More Popular Than Visa Credit Cards

I recently asked a representative from Visa’s debit card division (site sponsor) several questions about my favorite alternative to the credit card – the debit card.  Here’s what the representative stated about debit card rewards programs, transaction limits, and debit card holds.

Are there rewards programs for using debit cards?

About 85 percent of U.S. households participate in at least one rewards program. Increasingly, consumers are looking for rewards and value for the transactions they make every day, like paying bills, buying groceries, or filling up their gas tank. As consumers turn to debit cards for these types of purchases – instead of cash and checks – more financial institutions are introducing debit rewards programs.

Often, issuers will pair up with a partner like an airline or hotel to give you the ability to earn points on a debit card toward rewards you care about. Some financial institutions also offer the ability to earn points for qualified purchases that can be redeemed through an online catalog, for items like gift cards, airline vouchers and hotel accommodations.

Many financial institutions also reward their debit cardholders for other relationships they have with the institution – like a car loan, savings account, mortgage, etc. – giving those customers the ability to earn additional points or other benefits.

It’s important to understand how you can earn points toward rewards – what purchases qualify, whether you earn points when you enter a PIN or sign for your purchases, etc. Make sure you ask these questions of your financial institution, as policies may vary.

If my debit card is associated with my savings account, are there limits to the number of transactions I can have in one month?

Most financial institutions will allow you to make transactions from your savings account, but this may be limited by federal regulations. You should check terms and conditions with your financial institution.

Why are there holds placed on a debit card?

Holds are often placed on a debit card as a precautionary method when you use your card in places like express/video checkout at hotels, at the pump or restaurants where the exact amount of a transaction may not be known when the merchant first requests an authorization for a purchase.

Some financial institutions that issue Visa cards decide whether to place a hold on your funds in order to protect themselves against the risk that you will spend more money than you have in your accounts. They place this hold in anticipation of the final transaction amount. The hold, which can be higher than the cost of the purchase, is what allows you to use your Visa cards even when the exact final amount of a transaction may not be known and when the merchant first requests an authorization for a purchase.

To clarify, Visa does not determine the hold – that’s up to the financial institution. But to help ensure that holds do not disrupt your access to funds in your account, Visa requires that card issuing financial institutions release all holds within three business days of the authorization request or when the transaction clears, whichever is earlier.

Ask your own financial institution about any available rewards programs. Personally, I use Wachovia Possibilities, which rewards me for signature-based debit card purchases.

Follow me via Twitter

Debit Card Rewards, Limits, Holds

I recently asked a representative from Visa’s debit card division (site sponsor) several questions about my favorite alternative to the credit card – the debit card.  Here’s what the representative stated about debit cards and zero liability protection.

Is there a difference between the protection for a debit card and a credit card?

Despite the popularity of debit cards, consumers are often confused about the security features and consumer protections debit cards offer. Many of the same features and protections provided by credit cards are also offered with debit cards.

It’s important to know that Visa debit cards carry the same protections as Visa credit cards. For example, all Visa cardholders are protected by Visa’s Zero Liability policy. This policy means you pay nothing if unauthorized purchases are made on either a credit card or a Visa Check card when you choose to sign for your transactions. Some financial institutions offer Zero Liability protections for certain PIN debit transactions as well, but the best way to ensure you are protected is to sign for your purchases. Visa’s Zero Liability policy also applies to purchases made on the Internet.

Continually monitor your account and review your monthly statement to identify any unauthorized transactions. If you notice fraudulent activity on your card, you should contact your financial institution as soon as possible and report it – this may help to reduce your liability.

If your account is compromised, Visa is committed to setting things right without further aggravation or inconvenience to you. Visa’s cardholder protection policy requires all financial institutions issuing Visa products to extend provisional credit for losses from unauthorized card use within 5 business days of notification of the loss. Many institutions will provide replacement funds even faster, sometimes within 24 to 48 hours.

I highlighted the part about signature-based transactions.  When I use my debit card, I usually swipe the card, choose “credit card” when prompted, and then sign my name.  For added protection, I use a debit card which is not associated with my primary checking account.  Instead, my debit card is associated with a secondary checking account, where I keep a limited amount of cash, at a bank that does not allow overdrafts.

Ask your own financial institution about their liability protection and security procedures.  Do not assume you are protected.  A few, direct questions about liability protection today might save you thousands of dollars in the future.

Follow me via Twitter

Debit Card Liability Protection

I want to once again thank those of you who arrived here via this Money Magazine article about families who are living without credit cards.

If this is your first visit to my site, welcome.  I hope you will take a few minutes to read a bit more about me and about how and why I live without credit cards.  Now, today’s post:

According to this article – some gas stations have stopped accepting credit cards! Why?  From the article:

The National Retail Federation says gas prices point to the unfairness of the system: Gas stations are paying more in interchange fees because the price of gas has gone up, while the cost of processing credit or debit cards remains the same.

Credit card companies charge gas station owners (and all other merchants who accept credit cards)  an interchange fee – usually about 2% – each and every time someone uses a credit card to make a purchase.  Apparently, gas station owners have grown tired of sending credit card companies a cut of each sale – and some have gone to a ‘cash only’ policy.

Regardless of whether or not you agree with these changes, it might be time to start carrying a little more cash around, just in case you find yourself in an area where there aren’t any gas stations that accept credit cards.  (There are also interchange fees associated with the use of debit cards.  I’ll assume that a station that has stopped accepting credit cards has also stopped accepting debit cards, as well.)

For those, like me, who live in rural areas, this could be a very big deal.  In our small town, there are only four or five places to buy gasoline.  Personally, I use my debit card for most gasoline purchases, but I’m going to start adding a bit more cash to my ‘Gasoline’ envelope.  (For those of you unfamiliar with the envelope system – a great system for managing your cash – I have created a video detailing what it is and how to use it.)

I’m sure that most stations will continue to accept credit cards.  But, those who are traveling with children – or going out of town to unfamiliar places – might consider keeping a few more greenbacks on hand, just in case.

Side Note:  While I found this article very interesting, in my own experience, I’ve found that several gas stations appear to be encouraging the use of credit cards and discouraging the use of cash.  Many now require that users ‘pay at the pump’ or ‘prepay inside’ when using cash.  So, while the article is interesting, I’d really love to hear from my readers.  Have you experienced this in your area?  Are gas stations where you live going to a ‘cash only’ policy.  And, if so, how has (or will) this affect you?

Follow me via Twitter

Have Gas Station Owners Been Reading No Credit Needed?

A few weeks ago, I lost my ATM card.  Well, I didn’t exactly lose it.  I left it.

I left it in an ATM two hundred miles away from home.

I was visiting a friend in the hospital, and I wanted to give the family a little cash, just to help them with traveling / lodging expenses.  While talking on the phone with my wife, I drove off from the ATM, and forgot to retrieve my card.

I realized my mistake about two hours later.  I called my bank and they immediately ‘locked’ the card from further use.  They also put a ‘watch notice’ on my checking account for any possible fraudulent use.  I was really impressed by the speed with which they handled the issue.

I checked my mailbox today and my new debit card arrived, just like they promised.

With all of the negative stories about banks and big financial companies, I thought it would be appropriate to report that Wachovia promptly answered my call, took the necessary steps to prevent theft, and delivered a new card, just like they promised.

As a side note – I have been very, very busy this week.  My wife is less than five weeks away from her due date, my daughter has been sick, and I have been ’swamped’ at work.  But, hopefully things will slow down in the next few days and I can get back to my regular blogging / podcasting schedule.

Follow me via Twitter

The New Debit Card Arrived Safe And Sound

I mentioned before how I registered my debit card at Visa Extras so that I can earn bonus points whenever I use my debt card. Well, apparently, individual banking institutions have started to use the Visa Extras interface to create their own debit card bonus rewards websites. I received an email from my bank, Wachovia, noting that my Visa Extras account had been converted to a Wachovia Possiblities Rewards account. (Of course, I did NOT click on any of the links in the email itself. Instead, I went to the Wachovia homepage so that I could verify that the email was not a scam. Please, if you ever receive an email from what appears to be a bank, even if it’s your bank, do not click on any of the links in the actual email. The email could be a scam, ‘phishing’ for your account information and password!)

How do you earn points? By making “qualifying purchases”. From the Wachovia Possibilites Rewards FAQS

Qualifying purchases include:

* Signature-based purchases
* Internet purchases
* Phone and mail order purchases
* Bill payments

Basically, if you use your debit (check) card but you don’t enter your pin number, you’ll receive points.

So, how much are these points worth? Not much. Each “point” appears to be worth, seriously, $.002. If you spend $20,000 using your debit card, you can cash in your 20,000 points for a $40 gift card. (The new Wachovia Possibilites Rewards site allows you to register your debit (check) card AND your Wachovia credit cards. Credit cards earn more points per transaction (between 2 and 6), depending on the type of credit card.)

I’m disappointed by the value of each point rewarded, but every little bit helps.

Wachovia customers, click here to go to the Wachovia Possibilites Rewards homepage.

Others interested in checking the eligibility of your debit (check) card for rewards should head over to Visa Extras.

(By the way, the links provided are for informational purposes only. I will not receive any compensation should you choose to enroll in either of these programs. I mention these sites because I like to encourage people to use debit (check) cards instead of credit cards.)

Oh yeah. Since joining Visa Extras several years ago, I’ve accumulated over 15,000 points.

Follow me via Twitter

Visa Extras Is Now (For Wachovia Customers) Wachovia Possibilities Rewards

I just received an email from ING Direct with the following information:

From June 1 until July 31, ING Direct will give you 1% cash back for every “signature-based” purchase that you make with your ING Direct Electric Orange MasterCard Debit Card. Limit: $500

I’ve just recently (like YESTERDAY) opened up an Electric Orange from ING DIRECT checking account and I’m excited about this “bonus”. In the past, I’ve mentioned Visa Extras, which gives you rewards for using your debit card. (Check your local bank to see if they participate in the Visa Extras program. I use Wachovia, and Visa Extras is free for debit card holders.)

Both programs require “signature-based” uses of you debit card. What’s that? Basically, any purchase that does not require you to enter your “pin” number is considered a “signature-based” transaction. So, online, in store, mail order, or automatic bill pay transactions would all count as “signature-based”. (Why would they offer cash back when you use the card in this fashion? In most cases, a credit card type transaction costs the bank LESS than a debit card type transaction. Why? I have no idea.)

Click here to go to ING’s site and read the full details.

Click here to read a post I wrote about Visa Extras.

Did you notice the $500 limit? $500 is 1 percent of $50,000! I simply cannot fathom spending $50,000 in 60 days, but I’m sure someone out there will do it.

Follow me via Twitter

ING Direct Electric Orange Checking Debit Card To Offer 1% Cash Back

I do not use credit cards. I do not travel very often, and when I do, I usually just drive my own car. But, what if I wanted to use a car rental service? Could I do so using a debit (check) card?

Here is a list of many major car rental agencies and their debit card policies. Please click on the link associated with each company to read more about their policy. This information is provided in summary form and you should conduct your own research before using any of the companies listed.  Information subject to change.

Hertz: The Hertz FAQs state:

Q: Can I use my Debit Card or Bank Card to reserve a Hertz car?
A: At most Hertz locations, debit cards (sometimes called check cards) issued under a VISA or Mastercard logo which draw funds directly from the cardholder’s account may be used to qualify for rental. However, prepaid or stored value cards which have a VISA or Mastercard logo are not accepted to qualify for rental. Debit cards must have available funds for the estimated amount of the rental charges plus a reasonable amount to cover any incidental charges in order to secure the rental. Both debit cards and prepaid or stored value cards issued under a VISA or Mastercard logo may be used as a form of payment when you return the vehicle. Please contact your local Hertz Reservations Office if you have a question about whether Hertz will accept a certain card.

Enterprise: The Enterprise website states:

Question
Can I use my debit card to rent the car?
Answer
Some of our Enterprise locations will accept a debit card for the rental deposits and payments. Please contact the office you plan to rent from to determine their policies on renting with a debit card.

Question
What forms of payment does Enterprise accept?
Answer
A major credit card in the renter’s name is required for a deposit on all rentals. When the rental is returned, traveler’s checks, debit card, or a major credit card can be accepted to pay for the rental.

Avis: The Avis Website states:

Debit Card Policies

Avis reserves the right, in its sole discretion, to seek a Debit Card authorization hold in excess of the estimated rental charges. When using a debit card at Avis there may be a minimum hold of $500 and a maximum hold of the estimated rental charges will be placed on your account.
Upon returning the vehicle, Avis will process a release of the unused portion of the hold subject to your Bank’s procedures. The hold may take up to 2 weeks to be released by your bank.

Budget: The Budget website states:

If you’re using a debit card at a location that accepts them, we’ll require a hold of total estimated charges plus 25% or $300, whichever is greater. However, for insurance/service replacement rentals and tour rentals, the minimum debit card authorization hold is $100. At select locations in the Northeast and North Central regions, the minimum authorization hold is $500. Renters under 25 years of age may not use a debit card.

At some locations, debit and pre-paid charge cards are not accepted at time of rental but are accepted for payment at time of car return.

National: The National website states:

Debit Cards

When renting in the U.S., debit and check cards may only be used in conjunction with proof of a round trip travel ticket (airline, cruise ship or train) at time of rental.

Summary:
Almost every major rental car agency WILL allow you to reserve a car using a debit card. Most, however, will place a “hold” on your debit card in the amount of the full rental price plus, in some cases, a pretty healthy deposit percentage. Some rental agencies do not accept debit cards for reservation or have very strict policies. As for PAYMENT, however, almost ALL of the companies WILL accept a debit card as a method of payment when you RETURN the automobile. So, for now, perhaps the best way to rent a car is to either:
A) Reserve the car with a company that allows you to use a debit card. If yo do this, be sure that you have sufficient money in the bank to cover the entire rental fee and a rental ‘hold’ that the rental agency will no doubt place on your card.
B) RESERVE the car using your credit card and PAY for the car rental using cash or your debit card. (As I’ve stated before, I did not cut up my credit cards, and I carry one with me wherever I go. If pressed, for the safety and security of my family, I would use a credit card to reserve a rental car and pay cash whenever I returned the car.)

Again, before you use one of the above mentioned rental agencies, please research their current policies. Also, while I was compiling this information, I did not take into account ANY insurance-related policies. Please do your own research before you rent a car. An informed consumer is a powerful consumer!

For updated information on this subject, please read – Can I Rent A Car Without A Credit Card?

Follow me via Twitter

Can I Use A Debit Card To Rent A Car?

The three main reasons that I use cash and not debit/credit cards for daily purchases are…

1. I spend less when I use cash. Handing someone a fifty is much, much harder and more real than signing a credit receipt for fifty dollars.

2. Simplicity. I use an envelope system, and when I use cash I know exactly how much money I have in each account. Plus, less debit purchases mean less check-book entries to deal with and remember.

3. I want my kids to see me use cash. I want to teach them that real things cost real money. Checks, debit cards, and credit cards represent “fantasy” money to children. Cash is real!!!

Follow me via Twitter

Cash Money…Dollar-Aire?