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Rental deposit: how it works as a hold on your card, not a charge

Koru Team
Oct 29, 20266 min read

Quick answer

Here's how the rental deposit works with KORU: it isn't a charge, it's a hold on your card, and if all goes well it never turns into one. If the vehicle carries a deposit, you see the amount before paying and authorize the hold from your account on delivery day, with 3D Secure; it can be a different card. Without that authorization, the vehicle isn't handed over. If the rental ends with no damage and no pending charges, the hold is released after the return inspection period, and then your bank may take a few days.

What is a rental deposit and how does it work?

The question we get most about the deposit is how much it is and when it comes back, but first it helps to know whether you're being charged at all. You're not: it's a hold, also called a pre-authorization, like the one a hotel or a car rental company puts on your card. Your bank sets that amount aside on your card from the moment you authorize the hold until it's released, once the return has been inspected. Your banking app may show it as a pending transaction that looks like a charge, but if it's released in the end, it never becomes a charge or shows up on your statement.

Why is there a deposit if you've paid the full rental?

The rental and the deposit are two different things: one you pay, the other you only authorize. You pay the full rental when you book on korurent.com, and nothing is left to pay on delivery day. The deposit is separate: it's the guarantee while the vehicle is with you, and it isn't added to the total you paid. Fines and tolls, on the other hand, are on you.

This is how the hold is authorized on delivery day

It's delivery day, you've sorted things out with the provider and your phone is in your hand. You log into your account on korurent.com and authorize the hold with 3D Secure, the extra check your bank may use to confirm it's really you: a password, a one-time code or your fingerprint or face. It can be a different card from the one you paid with, handy if your travel card is close to its limit. You already saw the amount before paying. Without the authorization the vehicle isn't handed over, and there are no exceptions.

“We'd rather have a clear hold than a wad of bills on a counter. That way you're not walking around the beach with cash, and nobody has to count bills when you bring the vehicle back.”

— KORU RENT

When is the deposit released and why is the bank slow?

Don't count on that money the same day you bring the vehicle back. If the rental ends with no damage and no pending charges, the hold is released after the return inspection period. From there, your bank is in charge: some update what's available on your card right away and others take a few days, because of their own processing cycles. You can't remove it from your app either, since only the merchant or the bank that issued your card can release it. If days go by and you're not sure where yours stands, message us on WhatsApp and we'll look into it with you.

Heads up

If you already have other holds open, like your hotel's, they add up and lower what you can spend on that card. Our advice: before delivery, check that it has room for the deposit and for your trip expenses; if not, use another card for the deposit.

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Enter your dates and see the total and the deposit before paying

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Frequently asked questions

If you already have dates, go to the Puerto Escondido page on korurent.com: only available vehicles show up, and on each one you see the daily price and, if it has one, its deposit before paying. You book and pay right there. If you still have questions about how the rental deposit works or which card to use, message us on WhatsApp.

Koru Team

Koru editorial team, operating on the Oaxaca coast.