Car Rental with Prepaid Card: What You Should Know

Need car rental with prepaid card? Mr. Rent A Car requires a credit card at pickup, but you can use prepaid cards for payment on return. Learn how to use prepaid cards wisely and explore alternative rental options.

Want to rent a car using a prepaid card—either prepaid debit or gift card? While these cards can help manage budgets, not all rental companies accept them. Here’s what to expect from Mr Rent A Car and your options if all you’ve got is prepaid.

Our Policy at Mr. Rent A Car

An image showing a young guy receiving the key for his rental car

At Mr. Rent A Car, for the security deposit hold, we require a major credit card—Visa, Mastercard, or AmEx—in the renter’s name. We do not accept prepaid cards, debit cards, UnionPay, or virtual cards for this purpose. However, prepaid cards can be used after the rental to pay the final bill or cover extras.

So in short: you can’t pick up a car using a prepaid card alone, but can settle the total with it later.

Why Rental Agencies Prefer Credit Cards

Major credit cards provide:

Security for damage/theft via authorization hold
Fraud protection and liability coverage
Simplified accounting—payment made only when charges are finalized

Prepaid cards lack these security features. And to preserve our insurance and coverage terms, credit cards are mandatory.

Why Prepaid Cards Are Often Rejected

No credit buffer: Prepaid cards only hold current balance, not a revolving credit line
Authorization issues: Prepaid systems can’t always place security holds reliably
Policy conflicts: Many companies forbid using prepaid cards for the deposit—even if allowed for payment
Fraud risk: It’s difficult to reverse a hold or settle damage charges if the prepaid card is locked or depleted

As a result, major car rental firms—like National, Enterprise, Avis—won’t accept prepaid cards to start rentals.

When Prepaid Cards Can Work

Some independent or franchise rental agencies may accept prepaid cards with extra documentation, such as:

Proof of insurance
A second payment method (cash or debit/credit)
Larger security deposits

These services typically allow prepaid cards only for the final charge, not for the initial hold. And even then, the hold might tie up hundreds of dollars for days or weeks.

Alternatives If You Only Have a Prepaid Card

classroom along the road Need car rental with prepaid card? Mr. Rent A Car requires a credit card at pickup, but you can use prepaid cards for payment on return. Learn how to use prepaid cards wisely and explore alternative rental options.

Here are some practical solutions:

1. Pair With a Co-Renter

Have someone with a credit card reserve the car. They place the hold; you drive as a registered additional driver. You can pay them back using your prepaid card.

2. Use a Secured Credit Card

These cards require a cash deposit but function like regular credit cards—banks consider them valid, and rental agencies usually accept them.

3. Consider Local Agencies

Some smaller companies may allow prepaid payment—just read the fine print, confirm in writing, and be ready for longer processing times.

What To Know if Prepaid Is Your Only Option

You’ll likely need multiple forms of ID, such as proof of insurance, a return flight, or utility bills.
Be prepared for higher holds—$200–$500 or more blocked on your prepaid card.
Expect longer processing to release held funds—could take 7–14 days.
Rental agencies may require extra insurance purchases if the prepaid card isn’t tied to credit coverage.

Best Practices When Renting With Prepaid

Use Visa- or Mastercard-branded cards—they’re more likely to be accepted for post-rental payment.

Have a backup—ideally a credit or debit card, or person with one.

Verify insurance—ensure your prepaid card or personal policy covers collision/damage or plan to buy coverage.

Budget for holds—confirmed funds need to cover rental charges plus extras or deposit.

Mr. Rent A Car’s Prepaid Card Policy

In summary:

Accepted: As a payment method at the end of rental

Not accepted: For initial security holds

Required at pickup: Major credit card in your name

To reserve and collect your vehicle, you’ll need a credit card. If your prepaid card is all you have, consider partnering with a co-renter or choosing a local agency that accommodates prepaid with conditions.

Final Word

Renting a car with a prepaid card can be tricky—major agencies typically don’t accept it as deposit payment. At Mr. Rent A Car, we require credit cards at pickup for safety and convenience, but you’re always welcome to use prepaid options for final bill settlement.

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