How car rental companies pass on cost of traffic tickets

Updated

Here's something that could put a damper on your summer getaway: A growing number of car rental companies are sharing customer credit card info with American Traffic Solutions (ATS). If you don't recognize that name, you're not alone. Many Americans don't realize that ATS is the company that installs cameras at red lights to catch drivers committing traffic violations.

Why so significant? Travelers who rent cars and blow a red light will now automatically have the cost of that traffic ticket -- plus a $30 processing fee -- billed to the credit card they provided to the rental-car company, MSN Money reports, giving ATS a quick boost in revenue. If you think you can avoid this "auto ticket payment" by switching rental companies, you might be out of luck, since major players such as Hertz, Avis and Budget all have partnerships with ATS.

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