Booking deposits solve one of the biggest challenges service businesses face: clients who book but don't show up. A well-structured deposit policy protects your time and revenue while remaining fair to clients.
But get it wrong—charge too much or handle it poorly—and you'll scare away legitimate customers. This guide covers how to set deposit amounts, when to collect them, and how to handle the inevitable edge cases.
Why Booking Deposits Matter
A booking without payment is merely an intention, not a commitment. Understanding why deposits work helps you implement them confidently.
When someone pays a deposit, they've made a financial commitment. This triggers several psychological effects that work in your favor.
Loss aversion makes the deposit feel more valuable than its actual amount. A €50 deposit feels like €50 that could be lost, making clients more likely to show up than if there were no financial stake.
Consistency principle means people who've taken one action (paying) are more likely to take related actions (showing up). The deposit creates a commitment that clients want to honor.
Sunk cost awareness keeps the appointment top of mind. Clients remember they've paid and naturally give the appointment more mental priority.
The numbers are striking. Service businesses without deposits typically see 15-30% no-show rates. With deposits, that drops to 3-8%—a reduction that directly increases revenue.
For a consultant with 20 appointments per month, reducing no-shows from 6 to 1 means 5 additional billable sessions. At €150/session, that's €750/month in recovered revenue—far exceeding any friction the deposit might create.
Beyond no-show reduction, deposits improve cash flow. Instead of completing work and waiting to be paid, you have partial payment before the appointment even happens.
This matters especially for:
• New businesses building cash reserves
• Seasonal businesses smoothing irregular income
• High-value services where delayed payment creates risk
How Much to Charge
The right deposit amount balances commitment (high enough to matter) with accessibility (not so high it deters bookings).
For most service businesses, deposits between 25% and 50% of the total price hit the sweet spot.
25% deposits work well for:
• Lower-priced services (under €100)
• Established clients with booking history
• Services where full prepayment is unusual
• High-volume businesses prioritizing conversion
50% deposits suit:
• Higher-priced services (€200+)
• New client relationships
• Services requiring significant preparation
• Businesses with historically high no-show rates
Percentage-based deposits scale with service price, which usually makes sense. A €50 deposit on a €100 service (50%) represents the same commitment level as €150 on €300.
However, fixed deposits work better in some scenarios:
• You offer many services at different prices
• Simplicity matters for client communication
• Your minimum acceptable commitment is clear
• Administrative simplicity is valuable
A photography studio might charge a flat €100 deposit regardless of whether the client books a 2-hour session (€300) or full-day coverage (€1,200). The deposit secures the date without creating different processes for each package.
Different industries have established norms. Straying too far from these can confuse clients or seem unfair.
| Industry | Typical Deposit | Notes | |----------|-----------------|-------| | Photographers | 25-50% or flat €100-500 | Often retainer to book date | | Consultants | 50% or full payment | Higher for shorter sessions | | Therapists | Full session fee | Clinical norms vary | | Personal Trainers | First session or package deposit | Often 1 session of package | | Beauty/Spa | €20-50 flat | Lower to encourage bookings | | Coaches | 50% or first month | Higher for multi-session packages | | Event Planners | 30-50% | Scales with event size |
Research your specific industry. What clients expect in photography differs from what they expect in therapy.
When to Collect Deposits
Timing affects both conversion rates and protection. Collect too early and you add friction; too late and you've lost the commitment benefit.
Collecting deposits immediately at booking is the standard approach and usually the best one.
• Maximum commitment from the start
• No separate payment step to manage
• Client completes everything in one flow
• No risk of booking without payment
• Services with high no-show history
• New client relationships
• Time-sensitive availability (weddings, events)
• High-demand time slots
PayRequest's bookings feature handles this seamlessly—clients select their time and pay the deposit in one integrated flow.
Some businesses separate booking from deposit collection, sending a payment request after initial scheduling.
• Enterprise clients who need internal approval
• Services requiring consultation before confirming
• Relationship-building with new high-value clients
• Industries where immediate payment feels pushy
The risk: some portion of bookings will never convert to deposits. You've given away calendar availability without securing commitment.
Sophisticated businesses vary their approach by client relationship:
• New clients: Full deposit at booking
• Returning clients (2-5 bookings): 25% deposit
• Established clients (5+ bookings): Booking without deposit
This rewards loyalty while protecting against unknown risks. PayRequest's customer management helps track client history for these decisions.
Deposit Policies That Work
Clear policies prevent disputes and set client expectations. Your deposit policy should cover:
Spell out exactly when deposits are refundable:
Full refund: Cancellation with 48+ hours notice 50% refund: Cancellation with 24-48 hours notice No refund: Cancellation under 24 hours or no-show
These timeframes vary by industry. High-demand services (wedding photographers) might require weeks of notice. Low-demand services might allow same-day cancellation.
Rescheduling is different from cancellation—the client still wants the service, just at a different time.
Most businesses should be generous with rescheduling:
• Allow one free reschedule with reasonable notice
• Apply deposit to rescheduled appointment
• Limit how far out rescheduling can push the date
• Track reschedule history to identify problematic clients
Flexible rescheduling policies improve client relationships without the revenue loss of cancellations.
Be explicit about what happens when someone doesn't show:
"If you don't arrive within 15 minutes of your scheduled appointment time without prior notice, your appointment will be marked as a no-show. Your deposit will be retained, and you'll need to rebook and pay a new deposit for future appointments."
This clarity protects you legally and sets clear expectations.
Life happens. Good policies account for genuine emergencies:
"In cases of documented emergencies (illness requiring medical attention, family emergencies, severe weather preventing travel), we'll work with you on rescheduling or refunds regardless of timing."
This human approach builds goodwill while the documentation requirement prevents abuse.
Communicating Deposits to Clients
How you present deposits affects client perception and conversion.
"We require a €100 deposit" sounds like you don't trust the client.
"A €100 deposit secures your appointment and is applied to your total" frames the same requirement positively.
Better yet: "Your €100 booking fee reserves your spot and counts toward your session total. The remaining balance is due at your appointment."
Don't hide deposit requirements until checkout. Surprises at payment time kill conversion rates and annoy clients.
Mention deposits:
• On your booking page, before clients select times
• In service descriptions and pricing
• During any pre-booking consultation
• In confirmation of what they're about to book
Transparency builds trust. Clients who understand the deposit upfront are more likely to complete booking than those who feel surprised.
Some clients push back on deposits. Prepare responses:
"I've never had to pay a deposit before" "We find deposits help everyone—they reserve your time slot exclusively, and the amount applies directly to your service. It protects both your appointment and our schedule."
"What if I need to cancel?" "We offer full refunds with 48 hours notice. Life happens, and we want to be flexible while also protecting against last-minute changes that leave our schedule empty."
"Can I pay the full amount instead?" "Absolutely! Many clients prefer to pay in full upfront. You're welcome to do that at booking."
Handling Edge Cases
Real businesses encounter situations that policies don't perfectly cover.
Client arrives 30 minutes late to a 60-minute appointment. They expect the full session; you can only deliver 30 minutes.
Options:
• Provide shortened session, keep deposit, waive balance
• Reschedule for full session, deposit carries over
• Strict policy: treat as no-show if beyond grace period
Whatever you choose, apply it consistently. Inconsistent enforcement creates both legal exposure and client confusion.
Despite clear policies, some clients dispute deposit charges:
Credit card chargebacks: You'll need documentation—booking confirmation, policy agreement, communication logs. PayRequest maintains this automatically.
Direct complaints: Listen, empathize, then reference your policy. Offer alternatives where reasonable (credit toward future services vs. cash refund).
Public complaints: Respond professionally, offer to resolve privately, don't get defensive. Other potential clients are watching how you handle conflict.
What if your system fails and double-books, or a client can't complete booking due to payment errors?
• Always honor bookings made in good faith, even without deposit
• Waive deposits when technical issues are clearly on your side
• Document system issues in case of later disputes
• Follow up promptly to collect deposits that couldn't process
Some clients repeatedly cancel, reschedule, or cause issues. Options:
• Require full prepayment (not just deposit)
• Decline future bookings
• Increase required notice period
• Add to "difficult client" notes in your CRM
PayRequest's customer profiles help you track these patterns across bookings.
Implementing Deposits with PayRequest
PayRequest makes deposit collection seamless. When setting up bookings, configure:
• Deposit amount: Fixed or percentage
• Deposit timing: At booking or delayed
• Refund policy: Automatic or manual approval
• Balance collection: At appointment or follow-up invoice
Combined with security deposits for damage protection and smart links for easy payment collection, you have complete control over how and when money flows.
For high-value services, consider PayRequest's pre-authorization feature—reserve funds on the client's card without charging, then capture after the appointment based on what was actually delivered.
Start protecting your bookings with deposits today at payrequest.app/register.