Should you charge a booking deposit?

Charge a booking deposit when no-shows and late cancellations cost you more than the bookings a deposit might put off. That is usually true for long or expensive services, for slots that are hard to refill at short notice, and for first-time clients. For short, cheap services booked by regulars, a reminder and an easy way to cancel often do enough without one.

What a deposit actually does

A deposit does two things. It gives the booking a small cost, so a client who might not come thinks twice before booking — or cancels in time instead of staying away. And when someone does not turn up, it pays for part of the slot. Put your own numbers into the no-show cost calculator to see how much of a year’s no-show losses a given deposit would cover.

Deposit or cancellation fee?

A deposit is paid when the client books; a cancellation fee is charged afterwards, only if they cancel late or don’t turn up. The deposit is the stronger of the two: the money is already in, so there is nothing to chase. A cancellation fee costs reliable clients nothing up front, but you can only collect it if the client pays it afterwards, and the ones who skipped an appointment are the least likely to. Many businesses combine them: a deposit for new clients and long services, and a cancellation fee in the policy for everyone else.

When it’s worth it

• The service is long or expensive. One missed two-hour appointment costs more than several missed 20-minute ones.
• The slot is hard to refill. If a late cancellation means an empty chair, the deposit is what’s left of that slot.
• The client is new. You have no history with them yet.
• The client has missed appointments before. A deposit is a fairer next step than refusing them outright.

When it might not be

• Short, cheap services where a deposit is a hassle out of proportion to the loss.
• Long-standing regulars who have never missed a booking.
• Walk-in-friendly services where an empty slot fills quickly anyway.

How much to take

Enough that skipping the appointment is no longer free, not so much that it feels like paying in full for something that hasn’t happened yet. Start modest — for example 20% of the price, or a round fixed amount — and adjust once you see how clients respond. For very expensive or very long treatments, some take full payment up front.

What happens to the deposit

Decide this before you take the first one, and write it down:

• The client comes: the deposit counts towards the price.
• The client cancels in time: refund it, or offer to move it to a new booking.
• The client cancels late or doesn’t turn up: keep it.

Show these rules before the client pays — our deposit policy template has wording you can adapt. Consumer rules on deposits and cancellations differ between countries, so check what applies where you trade.

How Rezervito handles deposits

In Rezervito, our booking app for Shopify (launching November 2026), each service is set to no payment, a deposit — a fixed amount or a percentage of the price — or full payment. Clients pay through your store’s own Shopify checkout, and see what happens to the deposit if they cancel before they pay. An in-time cancellation refunds the deposit by default (you can choose to keep it); a late cancellation or a no-show keeps it, and the deposit is deducted from any no-show fee.