Terms and conditions 

• Car rental terms and conditions must be shown to the cardholder when booking a service prior to completion of booking/purchase on the internet
• The terms and conditions must be shown in the same window as the booking/purchase is confirmed
• It is not allowed to publish terms and conditions in a separate window or on a separate URL
• Terms and conditions must be sent to the cardholder by email with the booking confirmation
• Information about cancellation policy can be found here
• Car rental terms and conditions must be explained to the cardholder with a paper copy and the cardholder must agree with his signature on the same page that shows the terms and conditions. If the cardholder accepts the car rental company insurance (CDW), then the insurance must be specifically confirmed by the cardholder with his initials if the car rental agreement does not cover this provision
  
  

On commencement of rental  

• On commencement of rental, the car rental company may r pre-authorise the estimated amount on the renter's credit card  
• The estimated total amount of the payment authorisation may not include cost for self risk or insurance for possible damage
• If eventual rental cost exceeds the authorised amount, a new authorisation request must be made for the difference

Visa cardholders 

If, after a vehicle has been returned, it is noticed that the vehicle suffered damage during the rental period  and the cardholder is not present, the car rental company may charge the amount of the damage assessment on having fulfilled certain conditions.  

• The cardholder must be informed in writing about the damage and it‘s estimated cost within 10 days of the return of the vehicle,  the cardholder must furthermore be given 20 days notice to object before his credit card is charged. Please note that there must be a signed agreement by the cardholder of a charge for self risk in the event of possible damage. The cardholder must have accepted the car rental´s insurance terms and conditions with his initials at the appropriated self risk item
• The following must accompany the written damage notification sent to the  cardholder: 
  - Documentation explaining the damage and showing that the damage occurred during the rental period
  - A damage report, police report and insurance certificate if appropriate
  - Two damage estimates from separate approved workshops, the lower estimated shall apply
  - Statement of the share to be paid by the cardholder against that of the insurance for damage and the reason
  - Information to the cardholder that payment of damage with the cardholder´s card is optional and that he has the option of paying for the damage in another manner
• Written consent from the cardholder is always required to charge for damage to the card
• Charging for damage needs to be a separate transaction from the charge for rental cost
• An authorization must be applied after the damage has occurred, for the amount of the damage assessment or the amount accepted by the cardholder. The amount for the damage may not be higher than the amount accepted by the cardholder, nor higher than the value of the value of the vehicle if it is deemed unusable
• The card must be charged for damages within 90 days of the rental return date
• If the actual cost of the damage turns out to be lower than the cardholder was charged for, then the car rental must reimburse the difference within 30 days
  
  

American Express and MasterCard cardholders 

If it turns out after the vehicle has been returned that damage has occurred during the rental period and the cardholder is not on site, the car rental company may charge the amount of the damage assessment if the following conditions are met: 

• Cardholder´s approval is always required for the charging of damage once a damage assessment has been carried out. It must be accompanied by a signed payment receipt and declaration of liability (signature on a car rental agreement that contains a provision for charging possible damages does not meet the requirements for written consent for charging damages)
• Charging due to damage must be separated from the charge due to rent or rental cost
• It needs to be defined what the cardholder´s share is against insurance and why
• The authorization must be applied for, after the damage has occurred, for the amount of the damage assessment or the amount accepted by the cardholder. The amount charged for the damage can not be higher than the amount accepted by the cardholder, nor higher than the value of the vehicle if it is deemed unusable
• The cardholder must accept the car rental insurance terms and conditions with his signature on the same page where the terms and conditions are presented/published and with the initials at the appropriated section of the deductible
• An American Express card must be charged for the cost of damage within 90 days of the rental return date
• A MasterCard must be charged for damage within 30 days of the rental return date
• If the actual cost of damage turns out to be lower than what the cardholder was charged for then the car rental needs to refund the difference within 30 days

Other accrued cost 

The following cost is authorised to charge the cardholder after the vehicle has been returned: 

• Road tolls 
• Traffic infringements 
• Stop sign infringements 
• Fuel 

If Straumur requests additional documents for charging after the rental period ends, e.g. due to traffic violations, the car rental must deliver such documents, including the registration number, time and location of the infringement, amount and currency.  

The car rental company has to process the charge after the event and write „signature on file“ on the signature line.  

• American Express and Visa cards must be charged for the costs mentioned above within 90 days of the rental return date
• MasterCard card must be charged for the cost mentioned above within 30 days of the rental return date
• The handling fee for the above costs can be charged on the card if it is specified in the merchant´s rental agreement and accepted by the cardholder with signature
  
  
  

Cardholder objections to a charge for damage 

If Straumur receives a comment or a claim from a cardholder or card issuer, the car rental company is obligated to send Straumur a copy of the following documents in request: 

• A signed rental agreement and a final agreement
• Damage assessment from an authorized automobile repair workshop (two approved automobile repair workshops in the case of Visa card)
• Police report if applicable
• Car rental insurance certificate if the car rental company demands the cardholder to pay self risk in connection with the damage
• Car rental terms and conditions with the cardholder’s signature/initials
• The cardholder´s approval for charging the damage to their card
• If American Express or MasterCard cards, there must be approval after the damage assessment has been carried out with a declaration of liability and signed payment receipt
• If Visa card, it must be demonstrated that the cardholder has been sent a notification of damage along with the appropriate document specified here above if the cardholder’s approval subsequent to the event for charging the damage is missing
• Transaction slip
• Other important and applicable document

If the cardholder makes a comment or a dispute about a charge made on their card due to damage where above rules have not been followed, then the car rental can expect that the charge due to damage will be reversed. In such cases, the car rental itself must collect the damage in another way. It is the car rental company´s responsibility to ensure that rental agreements meet the requirements of the courts, as in some cases it is the car rental company´s only option to collect  cost for the damage rental car.  

Please contact Straumur at straumur@straumur.is for further information.   

These rules are based on American Express, Mastercard and Visa regulations.  

Rules published April 2023. 

Straumur greiðslumiðun hf. 


Here you can find instructions and rules for car rentals in icelandic.