Travel can be different. For car rentals, hotel guarantees and larger deposits, a genuine credit card can still have significant advantages – and some companies continue to insist on one.
The surprising part is that, at least in the case of Visa, this is often not technically necessary.
Debit Instead of Credit: Usually No Problem for Everyday Spending
With a debit card, payments are charged directly to the linked bank account. A conventional credit card, by contrast, comes with a credit facility provided by the bank, with transactions usually settled against the bank account at a later date.
For ordinary travel spending, the distinction often makes little practical difference. Restaurants, supermarkets, admission tickets and shopping can generally be paid for using a modern Visa Debit or Mastercard Debit card in many destinations.
The difference becomes more important when a company does not simply want to take a payment but wants to reserve a substantial amount of money.
Example 1: Car Rental – You Have Paid, but Can You Collect the Car?
This is the classic problem. A rental car is booked through an intermediary and paid for with Visa Debit. At the rental desk, however, the company requires a credit card for the deposit.
Some rental companies impose stricter conditions for higher-value vehicles and may require a credit card or even two cards.
It would be easy to assume that a credit card provides the rental company with greater technical security. Visa, however, says otherwise. According to Visa’s information on debit and credit cards for car rental, both card types can be used to pre-authorise rental charges and deposits.
Why rental companies nevertheless sometimes insist on Credit – and what travellers should check before booking – is explained in our detailed guide to renting a car without a credit card.
Example 2: The Hotel Is Paid For – but Money Is Still Reserved
Hotels provide another good example.
Suppose the room has already been paid for in full. At check-in, the hotel nevertheless reserves €300 to cover possible additional expenses such as restaurant bills, minibar purchases or parking.
With a credit card, the €300 initially reduces the available credit limit. The balance in the traveller’s current account remains unaffected.
With a debit card, however, a corresponding amount can be blocked against the funds in the bank account. The money has not necessarily been spent, but it may be unavailable for other travel expenses while the pre-authorisation remains in place.
Our guide to paying at hotels explains hotel pre-authorisations and payment methods in more detail.
Example 3: Pre-authorisations Can Add Up on a Road Trip
Suppose you have €3,000 available in your travel account. The car rental company blocks €500 and the first hotel reserves another €300. A few days later, the next hotel adds another pre-authorisation.
The money has not actually been spent, but an increasing proportion of the bank balance is temporarily unavailable.
With a credit card, these reservations initially use the credit limit instead. For independent travellers, that can be a significant advantage.
The credit limit still needs to be high enough. A credit card with a very low limit does not solve the problem.
Example 4: The Physical Card Can Still Matter
A smartphone or smartwatch may be all you need for normal day-to-day spending. For car rentals and some hotels, relying entirely on a digital wallet can be risky.
A rental company may require the card used for the deposit to be issued in the main driver’s name and physically presented at the desk. A payment card stored in Apple Pay or Google Pay does not automatically satisfy such contractual requirements.
The physical card should therefore still be part of your travel kit.
Example 5: Two Cards Provide a Second Financial Line
For independent travellers, this may be the most useful reason for carrying an additional credit card.
The debit card can be used for restaurants, supermarkets, public transport and everyday spending. Car rental deposits, hotel guarantees and larger pre-authorisations can be placed on the credit card.
This not only prevents temporary reservations from tying up money in the current account. It also provides a second payment method if one card is lost, blocked or unexpectedly refused.
Credit Cards Are Not Even Cheaper for Merchants
The preference some companies have for credit cards cannot simply be explained by lower card fees.
Under EU rules on card payments, interchange fees for certain consumer cards are generally capped at 0.2% for debit cards and 0.3% for credit cards.
The merchant’s actual cost includes other fees and can vary according to the contract, payment provider and type of card. Nevertheless, the conventional credit card is not preferred because it is inherently the cheaper form of payment for the merchant.
Reisebuch.de Tip: Debit Plus Credit Rather Than Either–Or
For independent travellers, using both systems is often the most practical solution:
- Debit card: restaurants, shopping, public transport, admission tickets and normal daily expenses.
- Credit card: car rentals, hotel guarantees, larger deposits and an additional financial reserve.
Check the available credit limit before travelling. On a longer road trip, several simultaneous pre-authorisations can use up a surprising amount of it.
And regardless of which type of card you use, one rule is particularly useful abroad: if a card terminal offers a choice between euros and the local currency, paying in the local currency is usually the better option. Dynamic Currency Conversion – the terminal’s offer to convert the amount into euros immediately – often comes with a less favourable exchange rate.
Do Travellers Still Need a Conventional Credit Card?
Not necessarily for everyday travel expenses. Visa Debit and Mastercard Debit have largely replaced conventional credit cards for ordinary payments.
The widespread assumption that debit cards are technically unsuitable for car rental deposits is also outdated. Visa explicitly points out that its debit cards can be used for pre-authorisations.
Nevertheless, a conventional credit card remains useful for independent travellers. It keeps larger deposits and pre-authorisations away from the current-account balance, provides an additional financial buffer and avoids problems with companies that continue to insist on Credit under their own rental or payment conditions.
Travellers taking a straightforward package holiday and mainly paying for restaurants and shopping at their destination may manage perfectly well with a debit card. Those travelling independently, changing hotels frequently or renting cars should think twice before giving up their conventional credit card.
The result is something of a paradox: the credit card is becoming increasingly unnecessary as an everyday means of payment. As a reserve and a practical financial tool for independent travel, however, it still has a role to play.