• Authorization means verification of the payment card data authenticity and of sufficient balance in the account linked to the payment card to make the settlement transaction where the payment card information is read by POS and the card issuer bank grants the authorization code for the transaction performed or specifies the reason why the payment card cannot be serviced;
  • Pre-authorization means fund reservation in the cardholder’s account by way of Authorization;
  • Cardholder means a private individual on whose behalf the payment card was issued or a private individual to whom the payment card issued on behalf of a legal entity is assigned;
  • POS means the electronic payment card reader to initiate payments by a payment card and to transmit and process the information related to the payment.

Accepting card

  1. Inspect the Card by appearance.

1.1. Make sure that the Card is not expired.
1.2. Make sure that there are no discrepancies between the Card user and information on the Cardholder on the Card (male/female). As indications to the cardholder’s gender may serve name, surname or address placed before them (Ms, Mrs, Mr).

  1. Make the authorization of the transaction by following the POS terminal user’s manual.
  2. Make sure that the Transaction is accepted and completed by POS terminal (authorized).
  3. Compare the Card number on Card and on the terminal slip.
  4. Make sure that slip was signed by Cardholder if there was a space for the Cardholder’s signature on the slip.
  5. Compare signature tally on the Card’s signature strip and on the slip.

If transaction was made with magnetic stripe and there was not possible to fulfill all of above stated instructions, you should consider of canceling transaction to avoid fraud risk.

Car pick-up

  1. Prior to assigning the car to the customer fill out the car’s inspection protocol to agree with the customer on its technical condition (which can be confirmed visually).
  2. Before renting a car, the car rental company must sign a car rental agreement with the Cardholder.
  3. In the car rent agreement the customer shall specify the type of payment for the received service. The agreement should clearly state which party shall cover the insurance, damages, penalties, etc. The customer’s postal address must be indicated in the agreement.
  4. If the Cardholder refuses a full voluntary car insurance, the car rental company must sign an agreement with the client for compensation of damages from the Cardholder’s account (for example: “I undertake to cover all expenses incurred by the car rental company if I fail to fulfil the provisions of the agreement or the losses incurred by the company while I operate the car, including without limitation, the repair costs. I agree that these expenses are debited from the payment card specified in the car rent agreement.”).
  5. Upon concluding the transaction must be ascertained physical presence of the Card by making authorization or debiting the funds by card Authorization with a chip or magnetic strip without entering the payment card number manually into the POS under the POS terminal user’s manual. Should the customer want to make settlement by Visa Electron or Maestro card, please, inform them that the following extras will not be accessible and that the ultimate settlement must be made by the Card through the POS terminal.
  6. The transaction to be performed for the specific rental amount provided by the agreement (the rental amount may include fuel, second driver, insurance).

Car return

  1. At returning the car, the car rental company must immediately check the condition of the car in presence of the Cardholder, issue the car inspection certificate to be signed by the Cardholder.
  2. In case the Pre-authorization was performed at the car pick-up, the funds are debited using the authorization code obtained at the Pre-authorization no later than within 25 (twenty five) calendar days after the Preauthorization date.
  3. If at the car return it comes out that the final amount does not exceed the Pre-authorization amount, the funds are debited using the initial Authorization code obtained during the Pre-authorization for the amount not higher than the Pre-authorization amount.
  4. If at the car return it comes out that the final amount is higher than the Pre-authorization amount, the Preauthorization amount is debited and a new debit transaction must be performed for the remaining amount with the Authorization (with the client’s physically presented payment card).
  5. In case after some time it comes out that offences were committed (e.g. road traffic, parking) during the car rental period resulting in penalties imposed, the client must be immediately informed and the respective funds must be debited. Penalties are charged from the payment card no later than within 30 (thirty) calendar days from the respective penalty notification (received by the car rental company) receipt date, but no later than within 90 (ninety) calendar days from the vehicle return date.

5.1. In case the term of 25 calendar days has not expired after the initial Pre-authorization, the funds are charged using the Authorization code obtained at the Pre-authorization. The total amount of all charges (including rental amounts) may not exceed the Pre-authorization amount, and in case this amount is to be exceeded, the provisions of paragraph 5.2 should be followed.

5.2. In case the term of 25 calendar days has expired after the initial Pre-authorization, a new debit transfer is generated with the Authorization (i.e. the authorization code cannot be entered individually, it is granted by the card issuer bank);

  1. If during the rental term, the rented car is damaged and the incurred loss is not covered by the insurance company, the car rental company may not deduct the amount of damage from the Cardholder unless the Cardholder confirms in writing his/her responsibility for the damage caused to the car and agrees, after the incident, in writing to the calculated amount for the car repair and to payment thereof using the specified payment card:

6.1. In case the precise amount of the damage is known as calculated based on the damage compensation fees provided by the agreement – the amount is debited following the Authorization, by the physically presented payment card;

6.2. In case the preliminary amount of the damage is known, but the precise amount is to be debited afterwards, after the client has left (without physically having the payment card), then, by way of exception, the damage related amounts can be debited from payment card account. In such case, a new Pre-authorization is performed in presence of the client (funds are reserved) for the preliminary amount of the damage with physically presented payment card. And afterwards, with the precise amount of the damage known, the funds are debited using the code obtained during the Preauthorization. The account is debited not earlier than after the notification sending date to the client provided that all of the following conditions are fulfilled:

  1. a notification of damage caused and its precise amount was sent to the Cardholder by registered mail or to the e-mail address specified in the agreement no later than within 10 (ten) business days from the car return date. The notification to the Cardholder must include the description of the damage caused to the car, damage repair estimate submitted by an official car service, amount and currency to be debited by the company from the Cardholder, and car damage photos. The car rental company must give the possibility for the cardholder to compensate the caused damage in another way or to make alternative offers for the repair of damage;
  2. obtain the cardholder’s confirmation that he/she agrees to the estimated amount of damage.


  1. In first Estimated Authorization Request must not to be include an amount to cover potential damage or an insurance deductible. When submitting the first Estimated Authorization Request, the card holder must be informed on both:

1.1. That the authorization request is not final and that there may be subsequent authorization requests
1.2. Of the amount of the estimated authorization request

  1. It is not required to submit a final incremental authorization request if the final transaction amount is no more than the greater of either:

2.1. The sum of the authorized amounts plus 15% (This does not apply if the last authorization obtained was a partial Authorization)

  1. For assessing amended amounts or delayed charges (loses, damage, theft) please read VISA and Mastercard core rules and guidelines for Car rental companies. 

Merchant should undertake to acquaint himself with and comply with other rules and requirements set to e-commerce by VISA and Mastercard.

If the funds are debited from the account by using the payment card data (without a presented card) in breach of the provisions above and in case if the cardholder is disputing the debit transaction, by experience the dispute in most cases is resolved in favour of the Cardholder and the car rental company must return the funds that were charged without authorisation to the party.

If you have any doubt that the holder is abusing the Card, please, call Card Processing Centre of Luminor Bank AS on +371 6717 1880.