Hotels, hire cars and security deposits: how to avoid unpleasant surprises

Contents:

• Hotel deposits: Why is an additional amount reserved on your card?

• What does the hotel deposit mean for your travel budget?

• Car hire deposit: Which cards are accepted?

• Deposit not refunded: What can you do?

• Keeping deposits under control: How to avoid problems with hotel and car hire deposits

• Conclusion: Be well prepared for your holiday

Hotel deposits: Why is an additional amount reserved on your card?

The room has long since been paid for, yet the hotel still asks for a deposit at check-in. This is common practice at many accommodation providers. It allows the hotel to cover any additional costs that may arise during your stay – such as for the minibar, room service or damage to the room.

In most cases, the money isn’t debited straight away, but is simply reserved on your card. This is known as pre-authorisation. The amount remains in your account, but you cannot use it for the time being. After you’ve checked out, the hotel will normally lift the hold. It may take a few days for the money to actually become available.

What does the hotel deposit mean for your travel budget?

Let’s say you have CHF 800 on your prepaid card. When you check in, the hotel reserves CHF 200 as a deposit. This leaves you with just CHF 600 for food, excursions and other expenses for the time being. With a credit card, your available credit limit is reduced instead.

For a longer stay, this might hardly make a difference. However, the situation is different if you’ve booked several hotels or are also hiring a car. In that case, several hundred francs can quickly be tied up at the same time.

Here’s what to do:

• Before you travel, check how much the deposit will be and which cards the hotel accepts.

• If you’re using a prepaid or debit card, make sure you have a little extra credit to hand.

• When you check out, ask when the deposit will be released.

Car hire deposit: Which cards are accepted?

Car hire companies usually require a deposit, even if the hire price has already been paid. This protects them against potential additional costs, such as damage to the vehicle, missing fuel, a late return or outstanding toll charges. If everything goes as agreed when you return the car, they will release the amount.

The key factor is which card you have with you. Many car hire companies only accept a standard credit card with sufficient available credit. It must usually be in the name of the main driver. Without a credit card, it becomes more difficult, but not impossible. Some providers accept debit cards, often subject to conditions: depending on the rental company, country and vehicle class, there may be restrictions on the choice of vehicle. Prepaid cards, on the other hand, are frequently declined.

Depending on the hire company, there are other options available. With some, the deposit can be reduced by taking out additional insurance; sometimes it is waived entirely. However, this does not apply to every insurance policy. A separately taken-out excess insurance policy may, under certain circumstances, reimburse the costs in the event of damage, but it usually has no effect on the security deposit. A cash deposit is also possible with some rental companies, but is generally not accepted by the major providers, as the following examples show.

Examples: SIXT, Europcar and Hertz in Switzerland

• SIXT Switzerland: In addition to credit cards, Visa and Mastercard debit cards are also accepted. Restrictions apply to the choice of vehicle for Maestro and V-PAY cards. Prepaid cards and cash are not accepted.
• Europcar Switzerland: The information is less clear-cut. The website mentions both credit and debit cards, but elsewhere explicitly requires a credit card. Anyone wishing to pay by debit card should therefore enquire directly with the rental branch beforehand.
• Hertz Switzerland: Credit cards are accepted for standard hire, but EC/Maestro and debit cards are not. Cash is also not accepted.

Good to know: With a credit card, the security deposit is usually only reserved. With debit cards, however, the amount may be debited directly and refunded once the vehicle has been returned. SIXT Switzerland, for example, specifies this procedure for Maestro and V-PAY cards.

As of October 2026. Conditions may vary depending on the provider, country of hire and vehicle class. The rules at the point of collection always take precedence.

Our tip: Read the deposit terms and conditions before you book. If you do not have a credit card, look specifically for rental companies that accept debit cards. And it is best to obtain written confirmation of any agreements regarding alternatives, such as a cash deposit.

Security deposit not refunded: What can you do?

You’ve checked out of the hotel or returned the car, but your deposit is still on hold? This is usually nothing to worry about. First, the provider needs to cancel the booking, or it will expire automatically after a certain period. After that, the card issuer processes the release, which takes a little more time.

Sometimes the money is back within a few days; sometimes it takes two weeks or longer. According to Swiss Bankers, a reservation can even remain active for up to 30 days.

If the money remains blocked:

• Keep your documents: Keep hotel bills, rental agreements and return confirmations. For hire cars, photos of the vehicle and the handover report are also helpful in case of any discrepancies later on.
• Check your card transactions: Check your banking app to see whether the amount still appears as ‘reserved’ or ‘pending’ or has already been definitively debited. This is an important distinction.
• Enquire after 14 days: If the money is still blocked, contact the hotel or car hire company. If the funds have not yet been released, ask for them to be released. If they have already been confirmed as released, your card issuer can check the status.
• Disputing an unauthorised charge: If the deposit has been charged and not refunded after you’ve returned the item, even though no costs were incurred, don’t just wait. Write to the provider and ask them to refund the amount within 14 days. At the same time, inform your card issuer and ask them to check whether a chargeback is possible.

Important: The authorisation period and the deadline for raising a dispute are two different things. Swiss Bankers requires that discrepancies be reported immediately. Depending on the terms and conditions, deadlines apply of no later than 30 days after the transaction date or after the relevant information has been provided. Anyone who discovers an unauthorised charge should therefore act immediately.

Keeping a tab on deposits: How to avoid problems with hotel and car hire deposits

If you check the payment terms before you travel and keep an eye on your card transactions, you can avoid many difficulties. These six tips will help:

• Check the terms and conditions: Before booking – and at the very latest before you arrive – clarify which cards are accepted, how much the deposit is and when it will be released.
• Allow for a reserve: With prepaid and debit cards, the available balance is reduced; with credit cards, the available credit limit is reduced. Several hotel stays plus a hire car can together tie up a considerable amount.
• Take a second card with you: This can be used as a backup if the first one is declined or blocked. However, a standard credit card is often required for car hire deposits.
• Check the insurance carefully: Does the additional insurance actually reduce the deposit, or does it merely cover the excess in the event of damage?
• Record the vehicle’s condition: Take photos of the hire car before your first journey and when you return it. Where possible, ask for written confirmation that the car has been returned in good condition.
• Keep an eye on your card transactions: Check your card transactions regularly during and after your trip. This way, you’ll spot any unexpected charges early on and can react in good time.

Another tip: Take a screenshot of the booking and deposit terms and conditions. If something different is suddenly requested on the spot, you’ll have the agreed terms to hand straight away.

Conclusion: Be well prepared for your holiday

Security deposits are simply part and parcel of staying in hotels and hiring cars. It only becomes a problem when they turn out to be unexpectedly high, the money is tied up for too long, or your card isn’t accepted. A few minutes’ preparation before your trip is usually enough. Make sure you have a bit of a buffer and take a second card with you. And when you get back, have a quick look at your banking app – that way, you’ll spot any issues early on.