Quick Summary:
- A pre-authorisation is a temporary hold, not a completed card charge.
- If you cancel before collection, the rental desk requests release, not you.
- Releases often show within 2–10 business days, depending on issuer.
- Ask your bank to confirm pending holds, and keep your cancellation confirmation.
Cancelling a car hire booking before you collect the vehicle often raises one urgent question, when will the deposit or pre-authorisation be released? In the United Estates, most “deposits” taken at the counter are not actually money taken from your account. They are commonly a pre-authorisation, sometimes called a pre-auth or security hold, placed on your card to secure funds for potential charges.
This matters because the timeline and control are different. A completed charge can usually be refunded only by the merchant that took it. A hold, by contrast, is authorised by the merchant but ultimately controlled by card networks and your bank’s processing rules. Knowing which one you have, and who can release it, is the quickest way to set expectations and avoid repeated calls that do not change the outcome.
If you want a quick reference for general car hire options and policies for the United Estates, start with car rental in the United States or the UK-facing overview at car hire in the United States. The guidance below focuses on deposit and pre-auth release timing after cancellation before collection.
Charge vs hold, what you are actually seeing
On your banking app, a charge and a hold can look similar at first glance. The wording might be “pending”, “authorisation”, “preauthorised”, or simply show as a transaction that has not yet posted. Here is the practical difference.
A hold (pre-authorisation) reduces your available balance or available credit, but it is not a completed purchase. The rental company has permission to take up to that amount later if conditions require it. If the rental never starts, the merchant should cancel or allow the authorisation to lapse, and your bank then frees the funds.
A charge is a completed transaction. Once it posts, the merchant must process a refund to reverse it. Refunds have their own processing timeline, and you will often see “pending refund” or a credit after a few business days.
In US car hire, the “deposit” at collection is frequently a hold. If you cancel before collection, there may be no new hold placed at all, unless you had a prepaid element, a booking fee, or an online verification charge. So the first step is to identify whether money was actually taken, or merely reserved.
Who controls the release after you cancel
It is understandable to assume that cancelling automatically releases everything immediately. In practice, there are three parties involved, the rental company, the card network, and your card issuer (your bank). The rental company can initiate a reversal or cancellation of the authorisation, but your bank decides when it stops reducing your available funds.
That is why two people can cancel the same day and see different outcomes. The rental desk or payment processor may release the hold quickly, but some issuers only update pending items in batches, or keep the hold until it expires naturally. Neither the rental agent nor Hola Car Rentals can force your bank to accelerate its posting rules.
When you cancel before collection, ask for written confirmation that the booking is cancelled and, if relevant, that the authorisation was voided. If the agent can provide an “authorisation reversal” receipt, keep it. It is the most useful document if your bank needs proof that the merchant has already released the hold.
Typical US timelines for pre-auth release
There is no single universal clock. However, most car hire pre-authorisations release within a fairly predictable range once the merchant voids them or they expire.
Common range: 2 to 10 business days after cancellation, depending on your issuer’s handling of pending authorisations.
Sometimes faster: If the merchant voids the authorisation promptly and your bank updates holds in near real-time, you might see the available funds return the same day or within 24 to 48 hours.
Sometimes longer: Some issuers may keep holds for up to 14 days, occasionally longer for higher-risk merchant categories. Weekends and bank holidays can also make the timeline feel longer because processing may pause or slow.
Debit cards can feel harsher than credit cards because the available cash balance is impacted. Credit cards typically show the effect in available credit rather than taking money from your current account, although the practical inconvenience can be similar.
What changes if it is a charge or a prepaid booking
If you paid in advance online, cancellation can involve a refund rather than a release of a hold. Refund timelines are usually measured from when the merchant processes the refund, not from when you press cancel.
Refunds: Often appear in 3 to 10 business days, but can take longer depending on the merchant acquirer and your bank. A refund is a separate transaction, and it must be processed by the party that charged you. If you see a posted charge (not merely pending), ask whether the amount was a prepaid rental, a booking fee, or an add-on.
Partly prepaid, partly on collection: Many US car hire arrangements are “pay later” for the rental itself, with a security hold at the counter, but optional prepaid elements can exist. If you cancel before collection, you might see a refund for the prepaid part, and no deposit hold if you never reached the counter.
For provider-specific terms, the local counter rules can vary. If you are comparing suppliers, you may find it helpful to review pages such as Alamo car rental in the United States or Hertz car rental in the United States to understand typical deposit practices and what is usually requested at pick-up.
Why you may still see the hold after cancellation
Seeing the hold still sitting there after you have cancelled does not automatically mean the rental company ignored your cancellation. It can happen for several reasons.
The hold was never reversed, only left to expire. Some merchants do not actively reverse holds and instead allow them to drop off automatically. From the customer perspective, the result is the same, but it can take longer.
The cancellation was processed, but the bank has not updated. Your bank may show the authorisation until its next system update, even if the merchant has already sent a reversal message.
Time zone and batch processing delays. If cancellation happens outside processing windows, the reversal may not be transmitted until the next business day.
Multiple authorisations. If you attempted collection, changed your booking, or rebooked, you might have more than one hold. Banks can show these as separate pending entries, and the older one may take longer to fall away.
How to check what you have, in plain steps
Use this approach to get a clear answer quickly, without being passed between the rental desk and the bank.
Step 1, look at the transaction status. If it says pending or authorisation, it is likely a hold. If it is posted, it is a charge.
Step 2, confirm whether you ever collected the car. If you did not reach the counter, a counter deposit hold is unlikely. That points to a prepaid element or an online verification authorisation.
Step 3, find the amount and reason. Pre-auth amounts in car hire are often higher than the rental total because they include excess, fuel, and incidentals. If the amount seems rounded or significantly above your expected rental, it is probably a security hold.
Step 4, request the right evidence. If it is a hold, request confirmation of void or reversal. If it is a charge, request confirmation of refund processing date and amount.
What you can do to speed up resolution
You cannot usually force a bank to instantly remove a hold. But you can reduce the time spent in limbo by providing the right information to the right party.
Ask the rental company for an authorisation reversal receipt. If they can provide it, send it to your bank’s card disputes or card services team and ask them to confirm whether they can release the funds earlier.
Call the number on the back of your card, not general banking support. Card services teams can usually see more detail about pending authorisations, including the expiry date.
Do not open a dispute immediately for a pending hold. Many banks cannot dispute an authorisation that has not posted. If you dispute too early, you may add delays and extra checks.
Keep a record of cancellation time and reference. If you cancelled close to collection time, show that you cancelled before pick-up and did not take possession of the vehicle.
Plan for debit card impact. If you use a debit card for car hire, consider that the hold can restrict funds for several days. A credit card often provides more flexibility because it affects available credit, not your current account balance.
What to expect by payment type
Credit cards: Holds typically reduce available credit immediately and reappear when released. The release may be visible sooner than on debit cards, but it still depends on the issuer.
Debit cards: Holds can reduce available balance and may take longer to show as available again. Some banks display debit holds more conservatively, even after merchant reversal.
Virtual cards and prepaid cards: These can be problematic for car hire deposits. Even if accepted for payment, they may not be accepted for a security hold, or the hold may behave unexpectedly. If you cancelled because of payment method issues, your bank may still keep the authorisation until expiry.
How this relates to cancellation before collection
When you cancel before collection, your most likely scenarios are straightforward.
No counter visit, pay later booking: Usually no deposit hold was ever taken. If you see a pending item, it may be an online verification authorisation that will drop off quickly.
Cancelled close to pick-up with counter interaction: A pre-auth may have been taken during check-in. The rental desk can void it, then the bank releases it within its timeline.
Prepaid booking: You will be waiting for a refund, which is different from hold release and may take several business days after the refund is processed.
If you are arranging specialist vehicles such as people carriers, keep in mind that higher-value rentals can have larger holds. For context on category expectations, see minivan hire in the United States, then check your confirmation and rental terms for the specific security amount and card requirements.
FAQ
Q: I cancelled before collection, why is the deposit still showing as pending? A: It is likely a pre-authorisation hold. The rental company can void it, but your bank controls when it disappears, commonly within 2–10 business days.
Q: Can Hola Car Rentals release the pre-auth on my bank account? A: Hola Car Rentals and the rental supplier can request a reversal, but only your card issuer can remove the hold from your available funds.
Q: How can I tell if it is a hold or an actual charge? A: A hold usually appears as “pending” or “authorisation” and does not post. A charge posts to your statement, and then a refund is required.
Q: What if the hold is still there after 10 business days? A: Ask your bank’s card services team for the authorisation expiry date, and provide your cancellation confirmation or any reversal receipt from the merchant.
Q: Will cancelling on the same day as pick-up delay the release? A: It can. Same-day cancellations may mean the pre-auth was already placed during check-in, and your bank may take longer to update after the merchant voids it.
