Will I lose money on exchange rates when they refund it?

[crowede]

Greetings! Concerned about the security deposit on my rental. Will I lose money on exchange rates when they refund it?

[kreoto]

Greetings! Good question - the deposit can be affected by exchange rates if there's a delay. Best practice: use a credit card for the deposit and ask the rental company to place a hold (authorization) rather than actually charging it. If they must charge and later refund in AED, and the exchange rate shifts during that time, you could lose a bit on the conversion. Using a UK credit card with zero foreign transaction fees minimizes this impact - you won't pay conversion fees on either the charge or refund. Also, holds are usually released faster than refunds are processed. This article covers deposit management: https://www.poundsterlinglive.com/news/22728-car-rentals-and-the-gbp-aed-exchange-rate including tips to avoid currency losses on deposits. Being strategic with your payment card choice makes a real difference on a month-long rental!