Booking deposit
Also called appointment deposit, reservation deposit, prepayment.
A booking deposit is a payment a customer makes when they book, to hold the time slot. It's usually applied to the final bill, and it's kept or refunded depending on the cancellation policy you set. Deposits cut no-shows because people who have paid something tend to show up or cancel in time.
Doug's Field Guide · Updated
Setting the amount and the refund window
Match the deposit to what an empty slot costs you. A med spa that blocks 90 minutes for a filler appointment loses a lot more from a no-show than a barber who loses 20 minutes. A common approach is a flat amount for short visits and a percentage of the service for long or expensive ones. Keep it low enough that a first-time customer doesn't balk.
Then write the refund window in one sentence a customer can't misread. For example: 'Cancel or reschedule at least 24 hours ahead and we refund your deposit in full. Inside 24 hours, the deposit is kept.' Put that sentence where they book, in the confirmation, and in any reminder. Most deposit fights start with a policy the customer never saw.
Decide what happens in the gray areas before they come up. A sick child, a snowstorm, a first offense. You can always refund as a courtesy, and a policy that's clear lets you do that without it looking like a precedent.
How online deposits work with Stripe
Most online booking tools take deposits through a card processor like Stripe. The customer pays when they book, and the money lands in your account like any other payment.
Refunds come back out of your Stripe balance. Stripe lets you refund all or part of a payment, and a refund goes back only to the card the customer paid with. Stripe's processing fee on the original charge is not returned, so refunding a deposit costs you that fee. Customers usually see the refund on their statement in about 5 to 10 business days, depending on their bank.
Another option is a card hold instead of a charge. Stripe calls it separate authorization and capture. An online card hold usually lasts about 7 days before it expires, so it only suits appointments booked within the week.
Put a deposit policy in writing
- Add up what one no-show cost you last month in lost time, and pick a deposit amount that covers part of it.
- Write your cancellation and refund window in one plain sentence with a specific number of hours.
- Add that sentence to your booking page, your confirmation message and your reminder.
- Test your own booking flow with a real card, then refund yourself to see what the customer sees.
Common mistakes
- Hiding the refund rules in fine print, so every kept deposit turns into an argument or a chargeback.
- Charging a deposit so large that first-time customers pick a competitor without one.
- Forgetting that the processing fee on a refunded deposit is not returned, so frequent refunds quietly cost money.
How Doug does it
Doug can take a deposit through your own Stripe account when he books a customer, and Doug takes nothing off booking payments. When a customer reschedules or cancels, he applies the refund window you set. The deposit amount and policy are yours to choose.
Terms on this page
- Cancellation policy
- Your written rules for what happens when a customer cancels, including the cutoff time and whether any deposit is refunded. Show it where customers book.
- Rescheduling window
- How far ahead of an appointment a customer can move it without losing their deposit, such as 24 hours.
- Stripe
- A payment processor that lets businesses take card payments online, including booking deposits. Refunds go back to the card the customer paid with.
Keep exploring
- No-show rateThe share of booked appointments where the customer never shows up.
- AI receptionistSoftware that answers customers, takes their details and books them, day or night.
- Done for youOur team works your fix queue on your accounts and reports every Monday.
- FAQ pagesThe questions customers ask on the phone, each with one short, clear answer.
Sources
Written by Doug's team from these sources and our own work with local businesses. Search engines change their rules, so check the source before a big decision.
