As the saying goes, “knowledge is power” and knowing how to properly handle your customers’ payments can be the most powerful tool your rental business can possess.
For most industries, there aren’t many issues with accepting a debit card. However, car rental more often than not can’t take on that kind of risk.
If the renter is driving away with high-priced merchandise, the expectation is that they will return it, however if they don’t and you only have a debit card on file – things can get ugly.
As is the case of the major rental companies, to combat this they require a credit card to initiate the rental, regardless if the renter will use a debit card to make the final payment upon returning the car.
It’s not ideal, but these companies do often put holds on debit card as well. Again, this is not ideal because it often takes up to two weeks for the funds to be released. Also, there is still no guarantee that the merchant will be paid.
So how can your car rental business insure that you are always receiving payment via a credit card? By using a proper payment processing service that allows you to detect when a debit card is being used so that your business can make a decision on how to handle the transaction on its terms.
When a customer swipes or key enters a card, the cardholder information is transmitted to the point of sale application and passed along a processing platform. The platform then makes an inquiry to a database and issues a response to the point of sale application indicating the card type.
A reliable payment processor can help protect your business and secure a better return on your investment. Finding a cost-effective solution for your rental business is possible with Bluebird Auto Rental Systems, we offer credit card processing through our partnership with Element Payment Services.
Contact us today to see how you can start making informed decisions on how your customers are paying for your services!