Deposits and Prepayment for Appointments: When to Ask and How Much

Deposit

The client pays part of the price when booking, and the rest at the appointment. It is the strongest commitment device short of full payment, and the money is already in your account if the client doesn’t show. Its downside is friction: some clients abandon a booking when asked to pay anything upfront, especially on a first visit.

Full prepayment

The client pays the whole price when booking. It suits fixed-price services, classes and anything bought as a package. It works badly where the final price depends on what happens in the chair (a colour correction, add-ons decided on the day), because you end up issuing partial refunds or extra charges. Square’s help page notes that clients can’t cancel prepaid appointments themselves, so the business handles cancellations and refunds.

Card on file (card hold)

The client enters a card, but nothing is charged unless they break the cancellation policy. It is the friendliest model for regulars and keeps booking quick. The risk is collection: the card can decline later, and a client who never paid anything may dispute a fee they don’t remember agreeing to. Square notes that if a card is declined when enforcing the policy, the business has to contact the client for another payment method.

A simple formula

Direct cost of an empty slot = staff pay you owe anyway + room or chair cost + any product prepared in advance. Then subtract what you usually recover by refilling the slot from a waitlist. The deposit should cover most of what is left.

Worked example, using our own numbers: a 90-minute facial priced at $150. The aesthetician is on a guaranteed hourly rate of $30, so 1.5 hours costs $45. The treatment room’s share of rent and utilities is about $15 for that block. Products mixed in advance cost $10. Direct loss: $70. If the business refills about a quarter of no-show slots, the expected loss is closer to $52. A $50 deposit, or one third of the price, covers it.

Percentages that are common in practice

Many salons and spas settle on 20% to 50% of the service price, or a flat amount for simplicity. Rentals, venue hire and event bookings commonly take 25% to 50% upfront and the balance a set number of days before. Classes and packages are usually paid in full. None of these are rules; they are ranges businesses arrive at by the formula above.

Keep it proportionate

Where consumer law addresses this, it tends to look at proportion. UK guidance from the Competition and Markets Authority, updated in 2026, says kept deposits or prepayments should reflect what a business will actually lose, and that keeping a deposit in full is generally acceptable when it is a small percentage of the price. Rules differ by country and state. This is general information, not legal advice.

Clients

First-time clients have no track record and no relationship to protect. Clients with a previous no-show or late cancellation have shown the risk. Regulars with a clean record are the least likely to miss, and asking them for a deposit can feel like distrust.

Services and slots

Long or expensive services cost the most when missed. Peak slots (Saturday mornings, weekday evenings) are the hardest to give away again at the last minute and the easiest to fill if the policy discourages casual bookings. Group bookings, such as a bridal party or a couples treatment, tie up several staff at once.

A tiered policy, written out

“New clients: $30 deposit on any service over 45 minutes, applied to the bill. Returning clients: card on file, no charge at booking. Saturday appointments and group bookings: 50% deposit. Any client with a no-show in the last 12 months: full prepayment for their next three bookings.” Rules like this depend on the booking system knowing who the client is, so check that your tool supports deposits by client type before you announce one.

Processing fees on booking platforms

Square’s pricing page lists online payments at 3.3% + 30¢ on its free plan and 2.9% + 30¢ on Plus and Premium, and card-on-file or manually keyed payments at 3.5% + 15¢. Fresha lists online payments at 2.79% + $0.20. On a $30 deposit, 2.9% + 30¢ comes to about $1.17, roughly 4% of the deposit, using our own arithmetic. Fixed per-payment fees weigh more on small deposits.

Refunds and fees

When you refund a deposit, check whether your processor returns its fee. Many don’t, which means a business that refunds every cancelled deposit pays processing on money it never keeps. That is one argument for applying the deposit as credit toward a rescheduled booking instead of refunding it.

An authorization reserves money, briefly

An authorization places the amount on hold on the client’s card without taking it. Stripe’s documentation says an online card authorization is typically valid for 7 days (a little under 5 days for some Visa transactions it initiates), after which the funds are released if not captured. That makes authorizations useful for bookings a few days away, and of little use for an appointment next month.

A saved card stores the right to charge later

Most booking tools’ ‘card on file’ means a saved card, not an authorization. Nothing is reserved; you charge it if the policy is broken. It works for any distance in the future, but the charge can decline, and you need the client’s agreement to the policy as evidence. Stripe’s dispute guidance recommends showing the full policy before purchase and requiring agreement, noting that a checkbox with only a link may be rejected as evidence.

Wording that works

Frame the deposit as holding the slot: “A $30 deposit holds your appointment and comes off your bill on the day.” Say what happens if they need to change: “Reschedule free until 24 hours before, and your deposit moves with you.” Put this next to the payment field, not three screens later.

Phone and walk-in bookings

Bookings made at the desk or by phone need the same rule. Send a payment link by text or email and mark the booking unconfirmed until it is paid, or take the card over the phone if your processor allows it (manually keyed payments often cost more, as Square’s 3.5% + 15¢ rate shows).

Charging everyone the same deposit

A $50 deposit on a $45 trim drives clients away; a $10 deposit on a $300 package barely matters. Scale it or target it.

Using authorization holds for far-off bookings

A hold placed when a client books three weeks ahead will have expired well before the appointment.

Refunding every cancelled deposit

Offer credit toward a new booking first. It keeps the client and avoids paying processing twice.

Not saying what happens to the deposit

Clients who don’t know whether the deposit comes off the bill assume the worst. Say it at booking, in the confirmation and on the receipt.

Prepaying variable-price services

Full prepayment on a service whose price changes on the day creates refunds and extra charges for both sides. Use a deposit instead.

What percentage deposit is normal for an appointment?

Many service businesses use 20% to 50% of the service price, or a flat amount such as $20 to $50. Rentals and events often take 25% to 50% at booking with the balance due before the date.

Is a deposit better than a card on file?

A deposit protects you more, because the money is already collected. A card on file is friendlier and works well for regulars, but the later charge can decline or be disputed. Many businesses use a deposit for new clients and a card on file for returning ones.

Can I keep a deposit if a client cancels?

If your policy says so and the client agreed to it at booking, keeping it after a late cancellation or no-show is common. Some consumer rules require charges to be proportionate to your actual loss; UK CMA guidance is one example. This is general information, not legal advice.

How long can I hold a card for an appointment?

An authorization hold on an online card payment is typically valid for about 7 days, according to Stripe’s documentation, after which it is released. For appointments further out, use a deposit or a saved card instead.

Should deposits be refundable?

Most businesses refund or transfer the deposit if the client cancels inside the free-cancellation window, and keep it for late cancellations and no-shows. Offering credit toward a new booking first often keeps the client and avoids repeat processing fees.

Do I pay processing fees on deposits?

Yes. Every deposit is a card payment. Square lists online payments at 2.9% + 30¢ on its paid plans and Fresha at 2.79% + $0.20, and refunds don’t always return the fee.