What is Credit Card Preauthorization?

Blog, Self-Drive

Credit Card Preauthorization

What is Credit Card Preauthorization?

Are you planning to rent a car from Saferide Car Rental in the Philippines? Before you embark on your journey, it’s essential to understand the concept of credit card preauthorization. This article aims to provide you with a comprehensive understanding of what credit card preauthorization is and how it works, ensuring a smooth car rental experience.

1. Introduction

When renting a car, many rental companies, including Saferide Car Rental, require customers to provide a credit card for payment and as a security deposit. This is where credit card preauthorization comes into play.

2. Understanding Credit Card Preauthorization

Credit card preauthorization is a temporary hold placed on your credit card by the car rental company to ensure that sufficient funds are available for the rental. It acts as a guarantee for the rental company in case of any damages, unpaid fees, or other charges that may occur during the rental period.

3. How Does Credit Card Preauthorization Work?

When you arrive at the car rental location, you will be asked to provide a valid credit card. The rental company will then initiate the preauthorization process by placing a temporary hold on a certain amount of funds on your credit card. The amount may vary depending on factors such as the duration of the rental, the type of car rented, and the rental company’s policies.

During the preauthorization period, the held funds will be unavailable for other purchases or transactions. However, the funds are not permanently deducted from your account unless there are additional charges incurred during the rental period.

4. Benefits of Credit Card Preauthorization

Credit card preauthorization offers several benefits for both the car rental company and the customer. Here are some of the key advantages:

  • Security Deposit: Preauthorization acts as a security deposit, ensuring the car rental company has a means to cover any potential damages or additional charges.
  • Streamlined Check-In Process: Preauthorization allows for a smoother and quicker check-in process, reducing the time spent on paperwork and verification procedures.
  • Convenience: Instead of paying a cash deposit, preauthorization allows you to use your credit card for the security hold, eliminating the need for carrying large amounts of cash.
  • Flexibility: Unlike a cash deposit, which is a fixed amount, credit card preauthorization allows the rental company to adjust the hold amount based on the specific rental requirements.

5. Limitations and Considerations

While credit card preauthorization offers numerous benefits, it’s important to be aware of certain limitations and considerations:

  • Temporary Hold: The preauthorized amount will be held on your credit card for a specific period, which may range from a few days to several weeks. It’s crucial to ensure that you have enough available credit to cover the hold during this period.
  • Credit Limit Impact: The preauthorized amount may temporarily reduce your available credit limit, so it’s important to consider this if you have other pending transactions or purchases.
  • Release of Funds: After returning the rental car in good condition and settling all outstanding charges, the rental company will release the preauthorized funds. However, it may take some time for the hold to be lifted, so be prepared for a potential delay in accessing those funds.

6. Frequently Asked Questions (FAQs)


Can I use a debit card for credit card preauthorization?

Saferide Car Rental only accepts credit cards for preauthorization. Debit cards are not accepted for this purpose due to their limited security and potential complications with releasing funds.

What happens if I don't have enough credit on my card for preauthorization?

If you don’t have sufficient available credit on your card for the preauthorization amount, Saferide Car Rental may refuse the rental or ask for an alternative payment method.

Will the preauthorization affect my credit score?

No, credit card preauthorization itself does not directly impact your credit score. However, it may temporarily reduce your available credit, which could indirectly affect your credit utilization ratio.

7. Conclusion

Credit card preauthorization is an integral part of the car rental process, providing both security for the rental company and convenience for the customers. Understanding how preauthorization works and its benefits and limitations will help ensure a smooth and hassle-free car rental experience with Saferide Car Rental in the Philippines.

Car Rental Services

Discover a wide range of transportation solutions tailored to your needs with our rental services.

Self Drive

Experience the freedom of self-drive: Rent a car and hit the road on your own terms


Road freely on two wheels: Choose from our divers selection of motorycle rentals.

With Driver

Sit back, relax, and enjoy the ride: Explore with our professional driver car rental services.

Travel & Tours

Unforgettable advenures await: Discover extraordinary travel and tours experiences.