Debit card daily limit (funds, pay, rent, deposit)

[clevman]

Hello everyone. I will be renting a car with a debit card this weekend, as I do not currently have a credit card. The car company requires a security deposit for a certain amount in which they essentially put a hold on the necessary funds until the car is returned. Here's my question - I have plenty of money in my checking account, but I have a daily spending limit on the card. Let's say the deposit amount is $400 and my daily spending limit for the card is $300. Will the company have access to my checking account to secure the funds, or will my card spending limit affect that?

[md21722]

You should use a credit card, pay the deposit in cash, or have the bank increase your spending limit. I strongly recommend using a credit card and only using cash or debit card as a last resort. With the credit card you probably also get insurance on the rental, etc.

[duster1979]

Originally Posted by md21722

You should use a credit card, pay the deposit in cash, or have the bank increase your spending limit. I strongly recommend using a credit card and only using cash or debit card as a last resort. With the credit card you probably also get insurance on the rental, etc.

Good advice, except that the OP doesn't have a credit card and probably isn't going to be able to get one by the time he rents the car this weekend. Also, running the debit card as a credit card gives you the same purchase protection as a regular credit card.

Clevman, I used to work in a Big Box home improvement store and we ran into this all the time. The bank should be able to waive your transaction limit for a specific purchase, just call them ahead of time and find out what it requires. Usually it just takes a call to the bank to say "I'm about to purchase something for $XXX.XX, please waive or increase my transaction limit to cover it." They'll verify that the funds are available and release the limit. But not all banks are universal on this, so again I recommend calling ahead to find out the rules.

[ReblTeen84]

Call the bank and have them increase the daily limit for the transaction. Then get a credit card - I would never, ever put a rental or hotel room on my debit card. The one thing you want to watch out for - rental companies (not all), can put a pretty healthy hold on your card, I've seen some over a grand. They can also hit you if you get into an accident and don't have their insurance. They'll probably charge you the deductible, but could be more. Most of the well known companies will just charge you the deductible.

Hotels can do the same thing, they'll put the cost of the room, plus a hold for any incidentals.

[md21722]

Some financial institutions won't increase the limit, period. My best advice is to get a credit card and use it once every few months and pay the balance in full. Some credit card issuers will deactivate accounts that are not used which is why I suggest using it for some small purchases periodically.

[Blackbeauty212]

I agree with most everyone stated here:

Debit Cards are a NO NO for these types of Transactions.....This is where it's good to have Credit Card even if you only use it for Big Ticket Charges such as this.

[whoisjongalt]

Just call the bank an tell them to raise the minimum. I've never heard of a bank with daily minimum. That sounds ridiculous. It's your money. If they don't like it, I'd change banks.

As much as I hate credit cards, the ONLY time I ever use one is when I rent a car. Even then, I pay the bill with a debit card when I return the car. I always pay for hotels, planes, etc. with a debit card and have never had a problem.

[md21722]

Originally Posted by whoisjongalt

Just call the bank an tell them to raise the minimum. I've never heard of a bank with daily minimum. That sounds ridiculous. It's your money. If they don't like it, I'd change banks.

As much as I hate credit cards, the ONLY time I ever use one is when I rent a car. Even then, I pay the bill with a debit card when I return the car. I always pay for hotels, planes, etc. with a debit card and have never had a problem.

I would call your bank/credit union and ask what your debit card daily purchase limit and daily cash withdrawal limits are.