Credit card and chargeback
Charged without warning? How a chargeback through your bank or card issuer works.
When you get a speeding, parking or restricted-zone fine in a rental car, the authorities usually contact the company, which passes on your details and often charges an admin fee. The fee should be in your rental terms. Consumer centres note that in some EU countries such fees have been found unlawful or unfair, and ECC Germany cites an Italian competition authority decision. Ask for the basis, object if several fees were charged for one day, and consider a chargeback.
With standalone excess insurance or cover bought on a booking site, the rental company charges you first and your insurer pays you back afterwards. Keep every document from the rental: the contract, the damage report, the invoice or estimate, proof of payment and photos. Check your policy for exclusions and deadlines, and dispute the rental company's charge as well if you think it is wrong.
Most rental companies block a deposit on your credit card as a guarantee, often equal to the excess. The money is not charged but reserved, so it reduces your available limit until it is released. ECC Malta says release usually happens within about 48 hours of a damage-free return. If the hold stays or is turned into a charge without explanation, ask the company in writing and contact your card issuer.
When a terminal or the desk offers to charge you in your home currency, that is dynamic currency conversion, a service with its own exchange rate and mark-up. EU rules require the conversion charges to be shown as a percentage mark-up over the European Central Bank rate before you pay, and you can refuse and pay in the local currency instead. Compare the rate before you choose, also for later charges like damage or fuel.
Usually your rental contract allows the company to charge costs to your card, including damage. That does not mean any amount is justified: the company has to show what is damaged, that it happened during your rental and what it costs. If you disagree, object in writing right away and ask your card issuer whether a chargeback is possible. Mind the issuer's deadlines.
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