One of the biggest issues with renting a car in the past (and still these days in Europe) is that rental companies would only accept credit cards. This had a lot to do with liability and that the rental company would only put a hold on the card and not actually charge it.

Thankfully, starting with Dollar, this restriction was gradually changed by the bigger brands. Many of the largest rental companies now accept debit cards. There are, however, still cases where you would have to have a credit card, for example, if you rent a van or luxury car or book within 24 hours of picking up the car

Many smaller or local brands still on accept credit cards. So be sure to find out before booking your car.

Renters should also be aware that American Express cards are often not accepted. Many, especially Americans, would prefer to use these if they have them due to the insurance coverage provided. Be sure to check before booking if you plan to use American Express.

Keep in mind that most companies also restrict the use of debit cards to those that have return airline tickets. Local renters wishing to use a debit card may still be able to but may be required to pass a credit check and/or present a utility bill. If you're an international renter, there should be no restrictions if the company accepts debit cards.

Finally, when using a credit card, the deposit with most likely only be a hold and not a charge. When using a debit card, it will be withheld from your checking accounting and may take a week after you drop off the car to be credited back. Just keep this subtle difference in mind in case you don't want that.

Using a debit card when renting a car in Europe is a little more complicated. It is difficult to say whether any company accepts debit cards because even for one company, it varies from country to country. For example, Sixt accepts debit cards in Germany but not in the Czech Republic.

There are many places and companies that accept debit cards, though. And the best way to find out which is to look at the payment policy section of the Rental Conditions. For instance, you can see in the example below that Centauro in Spain does accept debit cards.

There are also some caveats. There are many companies that will accept debit cards but that will only do so if you agree to purchase additional coverage that usually includes a zero deductible Collision Damage Waiver.

Another issue is that the deposits required in Europe are often significantly higher than those in North America. So you would need to have a significant amount of money in your account and be ready for that to be withheld from your account for some time.

There are only a few rare companies in very few locations that accept cash as payment. And even when they do, they almost always still require a credit card for security. If you have neither a debit nor credit card, then you almost certainly won't be able to rent a car, unfortunately.

Virtual payment cards have become very popular, as have paying with your phone with Google Pay and Apple Pay. But you shouldn't count on these when it comes to picking up a rental car. Almost all rental companies will ask that you provide a physical card when you are paying and leaving the security deposit.

Protip: Depending on where you rent a car, you may need to know the PIN code for your credit cards. Be sure that you find it before you begin your trip.

Most credit cards issued in America, and some issued in Europe, provide coverage for rental cars. For Americans, this usually covers rental cars in Europe, too.

So by using a debit card and not a credit card, you forgo this coverage. This could mean that you have to purchase expensive coverage from the rental company instead.

We suggest that if you plan to rent cars often, you should highly consider getting a credit card, if possible.