Quick Summary:
- Use a card with 0% foreign transaction fees and good FX rates.
- Ask your bank how USD payments and authorisations are treated.
- Decline dynamic currency conversion, and pay in USD when offered.
- Keep enough available credit for deposits, holds, fuel, and tolls.
Foreign transaction fees can quietly add to the cost of car hire in Florida, especially if your bank applies an overseas usage fee, uses an unfavourable exchange rate, or treats the payment as a foreign merchant transaction. The good news is that most surprises are avoidable with a few checks before you travel and a quick conversation at pick-up.
This guide explains how Hola Car Rentals’ credit-card-only payments are processed in USD, what that means for UK and international travellers, and what to confirm with your bank so you can minimise extra charges.
What “foreign transaction fees” really are
A foreign transaction fee is typically a percentage surcharge your card issuer adds when a transaction is processed outside your home country or in a foreign currency. Some issuers charge a flat fee, some charge a percentage (often around 2 to 3 percent), and some charge nothing at all. You can also see additional costs from poor exchange rates if your issuer’s FX spread is high.
For car hire, there are two common moments when you may see a charge or a temporary hold: the rental payment itself and the security deposit (often taken as a pre-authorisation). Either can trigger bank fees depending on your card’s terms.
How Hola’s card payments are processed, USD and card-only
Hola Car Rentals operates with card-only payments. For car hire in Florida, the amount is processed in USD. That matters because USD is the local currency for Florida, but it may still be considered a foreign currency by your bank if your card is issued outside the United States.
In practical terms, even when the price you agreed is clear and the payment is in USD, your bank may still apply one or more of the following: a foreign transaction fee, an overseas usage fee, or an FX conversion margin when converting USD back to your home currency.
So “paid in USD” is helpful for transparency, but it does not automatically guarantee you will pay no extra bank fees. The key is to use the right card and understand how your issuer handles overseas transactions.
The simplest way to avoid fees: use a card with 0% foreign transaction fees
If you want to avoid foreign transaction fees when paying for car hire in Florida, the most reliable approach is choosing a card that explicitly offers 0% foreign transaction fees and competitive FX rates. Many travel-focused debit and credit cards in the UK and Europe do this, but not all do, and some apply conditions.
Before travelling, check your card’s pricing page or app for two items: the foreign transaction fee percentage and the exchange rate policy. If either is unclear, call or message your bank and ask them to confirm the charges for a card payment made in USD while you are in the United States.
What to confirm with your bank before pick-up
Taking two minutes to ask the right questions can prevent most surprises. Here is what to check with your bank before pick-up:
1) Do you charge a foreign transaction fee for USD payments? Ask for the exact percentage and whether it applies to both purchases and pre-authorisations.
2) Is a pre-authorisation treated differently from a purchase? Some banks treat authorisations as normal card transactions, others apply different rules, and some reduce available balance in ways that can cause declines.
3) Will you decline a large authorisation or an overseas car hire charge? Car hire deposits can be higher than everyday spending. Ask if there are security blocks for car hire merchants or for overseas travel, and enable travel notifications if your bank provides them.
4) How is the exchange rate set? Clarify whether the bank uses the card network rate (Visa or Mastercard) and adds a margin, or whether it uses its own rate. This affects the final cost even if there is no separate fee.
5) What should I do if the transaction is declined? Knowing the bank’s process, app approval steps, and phone number can save time at the counter.
Watch out for dynamic currency conversion, always choose USD
Dynamic currency conversion (DCC) is when you are offered the option to pay in your home currency instead of USD. It can appear on card terminals or in payment flows. It may look convenient, but it often comes with a marked-up exchange rate that can cost more than your bank’s conversion, even if your bank charges a fee.
If you are offered a choice of currency, choose USD. Paying in local currency usually gives you the card network rate and your bank’s normal FX handling. Paying in your home currency can add a hidden premium through the DCC rate.
Understand deposits, pre-authorisations, and why they matter for fees
A pre-authorisation is a temporary hold placed on your card to cover the security deposit. It is not the final charge, but it can reduce your available credit limit until it is released. For travellers, this matters in two ways: you could incur fees depending on issuer policy, and you could hit your limit if the hold is large.
To avoid problems, check your available credit before travel and keep a buffer for deposits, fuel, tolls, and incidental spending. If you are using a debit card for travel, confirm how your bank handles authorisations, because the impact on available funds can feel more immediate than with a credit card.
Why location and pick-up point can affect how you plan payments
If you are arranging car hire around Miami, you may compare pick-up options such as Miami International Airport versus a city location like Downtown Miami. If you are staying central, Brickell can be convenient for hotel-based trips. For family travel with more luggage, you might look at vehicle categories such as minivan hire in Miami, which can change the overall rental value and what you want from your card’s FX terms.
The main point is not where you pick up, but being prepared for a USD transaction and a possible deposit hold, wherever you collect the vehicle in Florida.
What if you still see a fee after returning home?
If you notice an unexpected fee, first identify what it is. A “foreign transaction fee” is usually listed separately from the converted amount. If the converted amount seems high but there is no separate fee line, the cost may be in the exchange rate used by your issuer or by DCC.
Gather the receipt or transaction details, including the currency used at the time of payment. If you paid in USD and your card has 0% foreign transaction fees, challenge the fee with your bank and ask for the exact reason it was applied. If DCC was used, ask the bank whether it can be disputed, though policies vary.
FAQ
Will I definitely avoid foreign transaction fees if I pay in USD? No. Paying in USD avoids DCC mark-ups, but your bank may still charge an overseas usage fee or FX margin. A 0% foreign transaction fee card helps most.
Does Hola Car Rentals charge in GBP if I am from the UK? No. For car hire in Florida, Hola’s card-only payment is processed in USD. Your bank then converts it to GBP at its applicable rate and fees.
Can a deposit pre-authorisation trigger foreign transaction fees? It can, depending on your issuer. Some banks apply fees to authorisations and purchases, while others only charge on completed transactions. Confirm this before pick-up.
What is dynamic currency conversion, and why should I avoid it? DCC lets you pay in your home currency rather than USD, but it often uses a poorer exchange rate. Choosing USD typically results in a better overall cost.
What should I do if my card is declined at pick-up? Contact your bank immediately to approve the USD transaction and any pre-authorisation. If possible, use a backup card with sufficient available credit and travel settings enabled.
