How do I take a deposit for a booking?

Why take a deposit

A deposit makes a booking real. A customer who has paid something is far less likely to forget or to cancel at the last minute, and you are less out of pocket if they do.

It does not suit every business. For a quick low-cost visit it may put people off. For a long job, a table for a large party or a charter, it is common and customers expect it.

Two ways to do it

Holds have a time limit. Stripe says an online card hold is usually valid for 7 days, and the money must be collected before it runs out, or it is released. So holds suit bookings made a few days ahead, not a month ahead. Some payment methods do not support holds at all.

• Charge it at booking. The customer pays the deposit on the secure page when they pick the time. The money is taken at once, and you decide whether it comes off the final bill or is kept.
• Place a hold. The customer's card is checked and the amount is set aside, but not taken until you decide. A payment company, Stripe, explains that hotels often authorize a payment in full before a guest arrives and collect the money later.

Simple tools that need no coding

You do not need to build anything. Stripe describes Payment Links as a way to take payments without writing code: you make a link or a button and share it by email, text or on your website. It also describes invoices for a particular customer, which can be sent by email or text.

Your booking software may already include deposits. If so, use that, so the deposit and the booking are one step for the customer.

What to tell the customer

Most arguments come from surprise. Put the rules where they cannot be missed, before the customer pays.

• How much the deposit is, and what it is for
• Whether it comes off the final bill
• When it is returned, and when it is not, such as cancelling less than 24 hours ahead
• How to change or cancel the booking
• Who to contact if something goes wrong

What to check before you start

Rules on cancellations and refunds can differ by state and by kind of business. Check what applies to you with your accountant or a local business office. This page is general information, not legal advice.

For the booking side, read what is online booking. For how to take card payments more broadly, see how do I accept credit cards online. We set up bookings with deposits through online booking and online payments. To talk it through, get in touch.