Using someone else’s credit card isn’t illegal, but it can get you in trouble. That’s because when you use a card that’s not your own, it violates the rules of card networks and is likely to get your account shut down for fraudulent activity. Also, if your friend’s card has no insurance, you won’t be covered if she damages the car during the rental period.
If you do use someone else’s credit card to rental car companies that accept cash, make sure that person is physically present to pick up the car and sign the paperwork. They need to be listed as the primary driver, which will mean they’ll have to pay for a fee.
You’ll also need to show them a valid credit card or a debit card (if they have one) to sign the paperwork. You may need to provide an address for the card, as well as proof of travel–a boarding pass or ticketed itinerary.
Be aware that some car rental locations at airports require a refundable credit card deposit. That’s not something you want to forget, especially if your credit card has a high balance or you haven’t had much luck with other car rental agencies.
Some major rental companies–including Avis, Budget, Hertz and Enterprise–accept prepaid gift cards or cash as payment at the end of the rental period. Some franchises might not follow corporate policy, so call ahead to verify.
While most car rental companies accept debit cards, they’ll usually put you through a credit check to ensure that you have sufficient funds on hand to cover the cost of the rental, if needed. The credit check could lower your credit score by a few points, so be prepared for that.
Most car rental agencies prefer customers renting with a credit card over debit cards. Debit cards require the cardholder to be present when making charges, which puts them at risk for overdraft fees and other expenses.
It’s also easier for rental car agencies to bill credit cards than it is for them to bill debit cards. For example, if you go through an electronic toll booth and get a ticket without being pulled over, the agency can charge your credit card instead of your debit card to cover the cost of the toll.
There are other reasons that car rental agencies like to accept credit cards over debit ones, too. Some credit cards offer travel rewards or insurance benefits that are particularly useful when you’re paying for a rental car, as well as discounts at certain car rental agencies.
Some major credit cards, including SoFi’s 2% cash back credit card, allow you to pay for a rental car with your credit card, as long as it has enough available credit to cover the cost of the car rental plus any insurance costs that might be charged.
You can even buy additional insurance at the rental agency’s counter. Unlike prepaid cards, however, most of these options require you to be physically present at the time of pickup and drop-off.
