Every car rental at Faro Airport blocks a deposit on your card — the question isn’t whether, but how much and how long. When I picked up my first rental at Faro, I didn’t think twice about the deposit. Then I checked my bank account and saw a €1,200 hold that stayed there for three weeks. That was with Goldcar, and it taught me a lesson I want to save you from learning the hard way.

The deposit — technically a “pre-authorization hold” — is the single biggest source of frustration for visitors renting cars at Faro Airport. It ties up your holiday money, varies wildly between companies, and the refund timeline is often vague. After renting from five different companies across multiple trips to the Algarve, I’ve mapped out exactly what each one charges and how long they take to release it.

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How Deposits Work at Faro Airport

First, let’s clear up a common misconception: the deposit is not an actual charge. It is a pre-authorization hold — the rental company asks your bank to “reserve” a certain amount on your credit card. The money doesn’t leave your account, but it becomes unavailable to spend.

When you return the car undamaged and with the correct fuel level, the company releases the hold. Your bank then “unfreezes” the funds. The problem is that releasing the hold is instant on the rental company’s side, but your bank can take days or even weeks to process it. This is where the frustration comes from — you’ve returned the car, everything was fine, but your money is still locked up.

Every company at Faro requires a deposit. The amount depends on the car category, the insurance level you’ve chosen, and sometimes the rental duration. Companies with higher excess amounts on their basic insurance tend to hold more on your card, because the deposit is essentially their guarantee against damage.

One critical detail: most companies require a credit card for the deposit. A debit card won’t work at Sixt, Europcar, or Guerin. Need a debit card? See which companies accept them.

Deposit Amounts by Company

These figures are based on what I was charged across multiple rentals in 2025 and 2026, cross-referenced with each company’s current terms. Your actual hold may vary slightly depending on the specific car model and extras.

The pattern is clear: local companies like MasterKings and established brands like Guerin hold less and release faster. Budget operators like Goldcar use the deposit as a profit protection mechanism — and their refund timelines reflect that priority.

The “Zero Effective Deposit” Strategy

Here’s what I do now, every single time I rent at Faro: I book through DiscoverCars and add their full coverage option at checkout. It typically costs €6–8 per day — a fraction of what the desk charges — and it reduces the excess to €0.

Does the rental company still block a deposit on your card? Yes. But here’s why it stops mattering: if anything goes wrong — a scratch, a chip, a dent — the company charges the deposit, and you claim the full amount back through the coverage policy. I’ve done this once after a stone chip on the A22 and had the money back in my account within 10 days.

The psychological shift is significant. Instead of nervously inspecting every parking space and stressing about gravel roads to hidden beaches, you drive normally. The deposit becomes a temporary hold that you know will come back regardless. Full coverage lowers your deposit risk to effectively zero — it’s the single best piece of advice I can give.

What Affects Your Deposit Amount?

Not every rental carries the same deposit. Four factors determine how much the company will hold on your card:

What If They Charge the Deposit for Damage?

This is the scenario everyone dreads. You return the car, the agent finds a scratch, and suddenly your deposit — or part of it — gets converted into an actual charge. Here’s how to protect yourself:

Before you drive off: Take photos and a video of the entire car. Walk around it slowly. Capture every panel, the roof, the wheels, and the underside of the bumpers. Make sure your phone’s timestamp is visible or take a screenshot of the time immediately after. Do this in the presence of the agent if possible.

When you return: Repeat the process. Take another full set of photos before you hand over the keys. If there’s a queue, take the photos while waiting — don’t let them rush you.

If they claim damage: Ask for the damage report in writing. Compare it against your photos. If the damage was already there when you picked up the car, your timestamped photos are your proof. If it’s new damage and you have full coverage from DiscoverCars, file a claim immediately — you’ll need the damage report, your photos, and the charge receipt.

In my experience, the agents at Guerin and MasterKings are fair. They won’t charge you for normal wear. Goldcar and some other budget brands have a reputation for being more aggressive — another reason to always have third-party coverage.