No-shows cost service businesses thousands of euros per year. A single missed appointment means lost revenue, wasted preparation time, and a slot that could have gone to another paying customer. For salons, therapists, personal trainers, restaurants, and other appointment-based businesses, the financial impact adds up fast.
Yet most businesses still absorb these losses without attempting to collect. The reason is simple: they don't have a practical way to charge a no-show fee after the fact. Without a card on file or a POS terminal, collecting payment from someone who didn't show up feels impossible.
It isn't. Payment links solve this problem completely. You create a link for the exact fee amount, send it via email or SMS, and the customer pays online. No card reader, no awkward phone calls, no writing off the loss.
This guide covers everything you need: setting the right fee, communicating your policy, collecting payment efficiently, and preventing no-shows in the first place.
Key Takeaways
- No-shows cost the average service business €5,000–15,000 per year in lost revenue.
- Payment links let you charge no-show fees without a card on file or POS terminal.
- A clear, well-communicated cancellation policy is both legally required and dramatically reduces disputes.
- Pre-authorization deposits at booking time are the most effective prevention method — reducing no-shows by 60–80%.
- Combining SMS reminders with a deposit policy achieves near-zero no-show rates for most businesses.
How Much Do No-Shows Actually Cost?
Before setting a no-show policy, you need to understand the financial impact. The numbers are often worse than business owners realise.
A no-show doesn't just cost you the appointment revenue. It costs preparation time (setting up equipment, reserving ingredients, reviewing notes), opportunity cost (the slot could have been filled by another customer), and fixed overhead that runs regardless of whether anyone shows up.
For a hair salon charging €80 per appointment with 3 no-shows per week, the annual cost is €12,480 in lost revenue — plus the preparation time and materials wasted on each missed slot. For a physiotherapist at €65 per session with 2 weekly no-shows, that's €6,760 per year.
No-show rates vary significantly by industry. Healthcare averages 15–30% of appointments, with some specialist clinics reaching 40%. Restaurants see 10–20% of reservations go unfilled. Salons and beauty businesses average 15–25%. Personal trainers and fitness coaches report 10–20%.
These aren't small numbers. A business with 20 appointments per week and a 20% no-show rate loses 4 appointments weekly — 208 per year.
Understanding the reasons helps shape your policy. Research shows that 60% of no-shows are simply forgotten appointments — the customer intended to come but lost track. Another 25% are last-minute cancellations where the customer decided not to call. Only about 15% are genuinely unavoidable emergencies.
This means that most no-shows are preventable with the right combination of reminders, policies, and financial accountability.
How to Set a Fair No-Show and Cancellation Policy
Your policy needs to be firm enough to discourage no-shows but fair enough that customers accept it. Getting this balance right determines whether the policy reduces missed appointments or drives customers away.
The standard approach across industries is a percentage of the appointment value. Most service businesses use one of these models:
Full appointment fee — Common for therapists, doctors, consultants, and coaches. The rationale: you reserved the time exclusively for them and cannot resell it after the fact. A therapist charging €90 per session charges the full €90 for no-shows.
50% of appointment value — Popular with salons, personal trainers, and beauty businesses. This acknowledges that while you lost the slot, you saved on materials and can sometimes fill it. A salon charging €120 for a colour appointment charges €60 for a no-show.
Fixed fee per person — Used by restaurants and event venues. A restaurant might charge €25–75 per person who doesn't show, regardless of what they would have ordered.
Most businesses define a cancellation deadline — typically 24 to 48 hours before the appointment. Cancellations before this deadline are free; cancellations after incur the fee.
The 24-hour window works well for most services. It gives you time to fill the slot from a waitlist or contact other interested customers. For high-demand businesses (popular restaurants, specialist doctors), 48 hours is reasonable because filling a last-minute opening is harder.
In the European Union, you can charge cancellation fees provided three conditions are met. First, the customer must be informed of the cancellation terms before booking — not buried in page 12 of your terms, but clearly stated during the booking process. Second, the fee must be proportional to the actual loss. Third, the customer must have explicitly agreed to the terms.
Display your policy on your website booking page, include it in booking confirmation emails, and reference it in appointment reminders. This protects you legally and sets clear expectations.
How to Collect No-Show Fees with Payment Links
The practical challenge with no-show fees has always been collection. The customer didn't show up, you don't have their card details, and chasing them by phone is uncomfortable and time-consuming. Payment links eliminate this friction entirely.
After the no-show, create a payment link for the exact fee amount. With PayRequest, this takes under a minute:
- Log in to your PayRequest dashboard
- Create a new payment link
- Set the amount (e.g., €45 for a 50% no-show fee on a €90 appointment)
- Add a description: "No-show fee — Appointment [date] at [time]"
- Copy the link
The link supports multiple payment methods — credit cards, iDEAL, Bancontact, SEPA, and more — so the customer can pay however is most convenient.
Send the payment link via the channel where the customer is most likely to respond. Email works for professional services and healthcare. SMS has higher open rates (98% vs 20% for email) and works well for salons, trainers, and restaurants.
Your message should be professional, not confrontational:
> *"Hi [Name], we noticed you missed your appointment on [date] at [time]. Per our cancellation policy, a no-show fee of €[amount] applies. You can pay securely here: [payment link]. If you'd like to rebook, we're happy to help. — [Business Name]"*
If the customer doesn't pay within 3–5 days, send a single follow-up. PayRequest's invoicing system lets you convert the payment link into a formal invoice with automatic reminders, adding a professional escalation without manual effort.
For repeat offenders, consider adding them to a pre-payment-required list where future appointments require a security deposit at booking time.
Not every no-show fee is worth pursuing. If a long-time loyal customer has their first no-show, waiving the fee and sending a friendly rebooking message often preserves the relationship. Reserve strict enforcement for repeat offenders and first-time customers who no-show on high-value appointments.
No-Show Fee Collection Templates
Here are ready-to-use message templates for different industries. Customise them with your business details.
> *"Hi [Name], we're sorry we missed you at [Business] on [date]. Our cancellation policy requires 24 hours' notice. A no-show fee of €[amount] has been applied. Pay securely here: [payment link]. We'd love to see you soon — book your next appointment at [booking link]."*
> *"Dear [Name], this is a courtesy notice regarding your missed appointment on [date] at [time] with [Practitioner]. As outlined in our booking agreement, a late cancellation fee of €[amount] applies. You can settle this here: [payment link]. To schedule a new appointment, please contact us at [phone/email]."*
> *"Hi [Name], we held your table for [party size] on [date] at [time] but unfortunately you didn't arrive. Per our reservation policy, a no-show charge of €[amount per person] per guest has been applied. Pay here: [payment link]. We hope to welcome you another time."*
> *"Hey [Name], you missed our session on [date]. Since sessions are reserved exclusively for you, a no-show fee of €[amount] applies (per our training agreement). Pay here: [payment link]. Let's get back on track — your next session can be booked at [booking link]."*
How to Prevent No-Shows Before They Happen
Charging fees recovers lost revenue, but preventing no-shows is always better than collecting after the fact. The most effective businesses combine multiple prevention strategies.
SMS reminders 24 hours before the appointment reduce no-shows by 30–40% on their own. The message should include the date, time, location, and a one-click option to cancel or reschedule. Keep it short and actionable.
PayRequest integrates with booking workflows so you can automate these reminders alongside your deposit and payment processes.
The single most effective no-show prevention method is collecting a pre-authorization deposit when the customer books. This places a temporary hold on their credit card — no money is charged, but funds are reserved. If they show up, you release the hold. If they no-show, you capture it.
Businesses using pre-authorization deposits report 60–80% reduction in no-shows. The financial commitment at booking creates accountability that reminder messages alone can't match. Read our full guide on no-show protection with pre-authorization deposits for implementation details.
Many no-shows happen because cancelling feels inconvenient — the customer has to call during business hours, explain why, and navigate availability. Offering an online rescheduling link in your reminder removes this friction.
Include a "Can't make it? Reschedule here" link in every appointment reminder. Converting a cancellation into a rescheduled appointment is far better than a no-show.
Maintain a waitlist for popular time slots. When a cancellation comes in, automatically notify waitlisted customers. This turns cancellations from pure loss into rebooked revenue.
Payment Link vs Card-on-File vs POS: Which Collection Method?
Different no-show fee collection methods suit different businesses. Here's how they compare.
Payment links work for any business and don't require storing card details or having a physical terminal. You create a link, send it, and the customer pays online. PayRequest links support QR codes, branded checkout pages, and multiple payment methods.
Best for: Salons, therapists, trainers, coaches, consultants, restaurants — any business that books appointments without pre-payment.
Storing the customer's card details at booking lets you charge the no-show fee automatically. This is the most frictionless collection method but requires PCI compliance and customer consent. Many customers hesitate to store cards with small businesses.
Best for: Large clinics, hotel chains, subscription services — businesses with the infrastructure and trust to store card details.
A hybrid approach: place a hold at booking time, then capture or release based on attendance. No card storage needed — the authorization expires automatically. This is both the best prevention method AND the easiest collection method.
Best for: Any business wanting to prevent no-shows entirely rather than chase fees after the fact. Learn how to set up pre-authorization deposits.
Frequently Asked Questions
Send a payment link after the missed appointment. Create a link for the fee amount, send it via email or SMS, and the customer pays online with their preferred method — credit card, iDEAL, bank transfer, or other options. No card storage or POS terminal required. PayRequest lets you create and send these links in under a minute.
A legally enforceable policy in the EU requires three things: clear communication before booking (on your website, booking form, and confirmation email), a proportional fee relative to the actual loss, and explicit customer agreement. Display the policy prominently — don't bury it in fine print — and get acknowledgement during the booking process.
Many businesses waive the first offence and send a reminder about the policy instead. This preserves goodwill while setting expectations. For the second no-show, enforce the fee. For repeat offenders, require a pre-authorization deposit for all future bookings.
Yes. Create a payment link for the per-person charge, include the reservation details in the description, and send via the contact method the customer provided when booking. Some restaurants now collect pre-authorization deposits for large party bookings (6+ people) to prevent group no-shows.
With PayRequest, customers can pay via credit card, iDEAL, Bancontact, SEPA Direct Debit, PayPal, Apple Pay, Google Pay, and other methods supported by your connected payment provider (Stripe, Mollie, or PayPal).
Stop Absorbing No-Show Losses
Every missed appointment without follow-up teaches customers that your time has no value. A clear cancellation policy combined with an easy payment collection method changes the dynamic entirely.
PayRequest gives you everything you need: payment links for collecting no-show fees after the fact, security deposits for preventing no-shows with pre-authorization holds, and automated invoicing for professional follow-up and reminders. All included in the Business plan at €20/month with 0% platform fees.
Start your free trial and set up your no-show policy today.