Avis Budget Zurich Airport Refused All Payment Methods and Did Not Cancel Reservation

Hello, between August 20 and September 1, I rented a car from Avis Budget at Zurich Airport. When I went to pick up the car, they asked for a deposit. I wanted to pay in cash, but they refused. Then I tried to pay with my virtual credit cards, but they did not accept those either. They said it had to be a physical credit card. I then attempted to pay with an additional card issued for my spouse, but they rejected that too, saying the card had to be in my own name. They refused all the cards I had. I asked them to cancel the reservation, and they said they did, but in fact, they had not canceled it. I really do not understand why they behaved this way. Because of their actions, I also had to cancel my trip to Italy. As a result, I had to pay both for the car and for the hotel in Italy.