Booking deposit

A booking deposit is money taken at the time of booking, either as a charge against the final bill or as a card held with a stated charge if the customer does not show up inside your notice window. The hold is usually the better commercial choice, because it costs the honest customer nothing and still changes the behaviour of the unreliable one.

In practice

A deposit can work two ways. A charge takes money now and puts it against the final bill. A card hold takes nothing but keeps a token, with a stated charge if the customer does not show up inside your notice window.

The hold is usually the better commercial choice because it costs the honest customer nothing and still changes the behaviour of the unreliable one. It needs the terms stated plainly at the point of booking and in the confirmation — a surprise charge produces a chargeback you will lose.

Deposits also change your mix of customers, and not always in the direction people expect. Some trades find a small deposit filters out exactly the bookings that were never going to arrive; others find it deters first-timers. It is worth trying on one service before applying it to all of them.

Also called: card hold, appointment deposit.

Questions people ask about booking deposit

Is a card hold better than taking a deposit?

Usually, yes. A hold takes nothing from the customer who turns up and still changes the behaviour of the one who might not. A charge is better where you are buying materials in advance or holding a long slot, because the money is genuinely committed before the day.

Can I charge a customer who does not turn up?

Only if the terms were stated plainly at the point of booking and repeated in the confirmation. A surprise charge produces a chargeback you will lose, because the dispute turns on what the customer was told rather than on what you intended.

Do deposits put customers off?

It varies by trade, and not in the direction people expect. Some find a small deposit filters out exactly the bookings that were never going to arrive; others find it deters first-timers. It is worth trying on one service for a month before applying it to the whole book.

Where to go next

Booking systems →