Quick Summary:
- Most US deposit authorisations are card-present, SCA is usually not requested.
- Chip-and-PIN is uncommon in US car hire, signatures still appear.
- If the terminal cannot complete verification, your bank may decline automatically.
- Bring a physical credit card, matching ID, and a backup payment method.
Strong Customer Authentication, often experienced as a bank app approval or one-time passcode, is a common part of paying in the UK and Europe. When you arrive in New York for car hire, the confusing bit is that US rental deposits are typically taken as a pre-authorisation on a physical card, using payment terminals that do not work the same way as UK chip-and-PIN systems.
The reassuring headline is that SCA is usually not required for US car-hire deposits. The less reassuring detail is that some UK-issued cards still trigger bank-side checks that resemble SCA, and if a US terminal cannot support the flow your bank expects, the authorisation can fail. The result can be a declined deposit at the counter, even though you have funds available.
This guide explains how US payment terminals tend to process deposits, why chip-and-PIN behaves differently, and what practical steps reduce the odds of a failed deposit when your bank security expects app approval.
How US car-hire deposits are actually taken
At most major rental desks and airport locations, the deposit is not a purchase. It is a pre-authorisation (also called a hold) against your available credit limit. The agent enters an amount, your card is presented, and the terminal requests an authorisation from the card network and your bank. If approved, you do not pay that amount, but your available credit is reduced until the hold is released.
Because it is card-present and initiated by a merchant category with a long history of pre-auth holds, it is usually processed without the kind of step-up verification you might see online. That is why travellers often never see a bank app prompt at all when collecting a vehicle.
However, UK banks can still decline a pre-auth if it looks risky. Common triggers include an unusually high hold amount, a first transaction in the US after travel, a mismatch between your billing address record and what the clerk types, or a pattern that resembles fraud. The decline can happen silently, with the desk only seeing a generic message.
If you are arranging car hire around JFK, it helps to review the location details and typical desk process in advance, for example via car rental New York JFK or the UK-facing airport page car hire at New York JFK. Knowing whether you will be using a staffed counter or a self-service kiosk can affect what kind of terminal interaction you get.
Chip-and-PIN, chip-and-signature, and swipe, what you will see in New York
In the UK, chip-and-PIN is normal for in-person transactions. In the US, chip cards are common, but the customer verification method is often signature or no verification for lower-risk transactions. Some terminals still support magnetic stripe swipe, especially as a fallback if a chip read fails. For car hire deposits, you will most commonly see a chip insert, sometimes followed by a signature prompt on the screen or printed slip.
That matters because many UK cardholders expect a PIN challenge, or assume the bank app will always get involved. In reality, the authorisation decision is mostly happening between the terminal, the network, and your bank, and it may complete without any customer-side action beyond inserting the card.
So will Strong Customer Authentication work? If your bank attempts to trigger an approval step, the car rental terminal is unlikely to present the exact SCA challenge you recognise from online shopping. Instead, your bank may decide to approve without step-up, or it may decline if it cannot be confident the transaction is legitimate.
Why a UK bank might still ask for app approval
SCA rules are a European regulatory framework, and they are not a US requirement at the counter. But UK banks still use similar mechanisms as part of their fraud controls. The app approval you see is often a form of step-up verification. It can happen for online payments, but it can also happen for some in-person authorisations if the bank’s risk engine decides it needs more certainty.
With car hire deposits, the most common issue is not that the terminal asks you to approve and you cannot. It is that the bank wants more confirmation than the terminal can provide. The bank might then decline, or request the merchant retry in a different way, such as using chip rather than swipe. If the desk keeps retrying and the bank keeps declining, it can look like a hard stop.
Another nuance is that a pre-authorisation can be processed differently from a standard sale. Some banks are more cautious about large pre-auths, particularly abroad. That caution is not “SCA not working” as such, but it can feel identical to the customer: your bank app may show alerts, but there is no obvious way to approve the hold.
Situations where deposits fail, and how to avoid them
1) You only have a debit card. In New York, many suppliers prefer a credit card for the deposit, especially at airports. Some will accept debit cards but may require additional checks, a larger hold, or proof of return travel. If your debit card triggers extra bank controls, the chance of decline increases. The simplest mitigation is travelling with a credit card in the main driver’s name.
2) Name mismatch or driver mismatch. The deposit card normally must match the primary driver. If you try to use a partner’s card, or a business card that does not match your ID, the desk may refuse it even if the bank would approve.
3) Insufficient available credit limit due to other holds. Hotels in New York often place incidental holds. Add that to a car hire deposit and you can hit your limit unexpectedly. Check your available credit before you arrive, not just the headline limit.
4) Offline or fallback processing. If a terminal cannot get a reliable chip read, a merchant might try swipe or manual entry. UK banks are often stricter about swipe fallback abroad, and may decline as higher risk. If your chip fails, ask to try another terminal, and ensure the chip is clean and undamaged.
5) Travel notifications and bank settings. Some UK banks no longer require travel notices, but card controls in the app can still block transactions in certain regions or merchant types. Before you fly, check that international and in-person payments are enabled.
If you are collecting from Newark as an alternative to JFK, the same deposit principles apply. You can compare options around EWR using car rental New Jersey EWR, and for vehicle category expectations see SUV hire Newark EWR. Larger vehicles can come with higher deposit expectations, so your available credit matters.
What to do at the counter if your deposit is declined
First, stay calm and ask what the terminal response says. Agents often see only a short decline code. Ask whether they can retry using chip (not swipe), and whether the amount can be adjusted by changing optional extras. In some cases, removing an added fuel product or upgrading insurance at the counter changes the required hold.
Next, check your banking app immediately. Some banks show a declined merchant name and location, and may offer an in-app toggle to allow the payment type. If you have the ability to approve a transaction, do it, but be aware there may be nothing to approve for a pre-authorisation. If your app offers “allow merchant” or “unblock card” features, use them and then ask the desk to try again.
If the bank has blocked the transaction for fraud reasons, calling the number on the back of the card can help. Tell them it is a car hire pre-authorisation in New York, give the approximate amount, and ask them to allow it. In practice, this is often quicker than repeated terminal attempts.
If you have a second card, use it. A backup credit card from a different bank can be the difference between driving away and spending your first evening rearranging plans.
Does chip-and-PIN matter for US car-hire deposits?
Not usually. A US terminal can accept a chip card without asking for a PIN, and the transaction can still be valid. For car hire, the rental agreement and the card-present nature of the transaction are part of the merchant’s risk controls, so signature is often considered sufficient.
That said, some UK travellers worry that “no PIN” means “less secure” and therefore more likely to be rejected. In reality, the approval decision is based on the authorisation request and the bank’s risk model, not whether a PIN was entered. Where PIN does matter is when your bank insists on a certain verification path, which is uncommon for in-person US deposits but not impossible.
Planning ahead for New York car hire with UK bank security
Before you travel, take five minutes to reduce the usual failure points. Confirm your card is a credit card (not prepaid), check your available limit, and ensure your card is not close to expiry. In your banking app, enable overseas and in-person payments, and disable any strict merchant controls that could block vehicle rental or “travel” categories.
Bring the physical card you intend to use. Digital wallets can be accepted for day-to-day spending in New York, but many rental desks still require the physical card for the deposit and for verification. Also bring your driving licence and a passport that matches the booking details.
Finally, be realistic about hold amounts. Deposits vary by supplier, vehicle group, and your chosen cover. If you are comparing suppliers, it can help to check the general expectations on a supplier page like Avis car hire New York JFK and then confirm the exact deposit terms in the rental conditions for your specific quote.
Bottom line, will SCA bank approval work?
Most of the time, you will not need it, because US car hire deposits are processed as standard card-present pre-authorisations without an SCA-style challenge. The risk is that your UK bank may still apply step-up security or fraud blocks in the background. You cannot rely on being offered an app approval at the desk, so the best approach is to avoid triggers that cause declines and to carry a backup card.
If you plan for chip insert, expect signatures, and ensure your bank settings allow overseas pre-authorisations, you can greatly reduce the chance of a failed deposit when collecting a car in New York.
FAQ
Will my UK bank app definitely ask me to approve the deposit? Usually not. Most US rental deposits complete as a card-present pre-authorisation with no customer prompt, even if your bank uses app approval for online purchases.
If the deposit is declined, does that mean I failed Strong Customer Authentication? Not necessarily. Many declines are simple fraud blocks, swipe fallback rejections, or insufficient available credit. A pre-authorisation often has nothing for you to approve in-app.
Is a PIN required at US rental desks? Commonly no. Chip is used, but verification is often signature or no prompt. A missing PIN screen does not mean the transaction cannot be authorised.
Can I use Apple Pay or Google Pay for the deposit in New York? Sometimes for payments, but many desks still require a physical card for the security hold. Bring the physical credit card that matches the lead driver’s name.
How much available credit should I keep free for car hire deposits? It depends on vehicle and supplier, but keeping several hundred dollars of headroom is sensible. Remember hotel incidental holds and other travel deposits reduce available credit.
