A deposit is a business policy, not just a payment button. It asks a customer to commit money before the work happens, so the reason, amount, timing and refund rules all need to be easy to understand.
For some businesses it protects scarce appointment time. For others it adds friction to a relationship that works perfectly well by invoice. The right answer depends on what a missed booking or unpaid project actually costs you.
When deposits can make sense
- You reserve a high-value slot that is difficult to refill.
- You buy materials or incur travel costs before the appointment.
- The work requires preparation that cannot be reused for another customer.
- Repeated no-shows are taking meaningful time away from the business.
- A deposit helps both sides confirm that the booking is serious.
If none of these is true, a simple booking confirmation may be a better experience than collecting money up front.
Choose a model you can explain
- A fixed amount is easy to understand when services are similarly priced.
- A percentage can scale with project value, but customers need to see the calculation clearly.
- Full prepayment fits defined services or products, provided the cancellation and refund terms are plain.
- An invoice after approval may suit work where scope or final price is not known at booking.
There is no universal deposit percentage that is right for every business. Choose an amount you can justify and apply consistently, then confirm any legal or industry requirements that apply to you.
Put the policy beside the payment
Before someone pays, say what the deposit is for, whether it comes off the final balance, what happens if they cancel or reschedule, and how a refund is handled. Include the deadline and the right way to contact you. A hidden policy creates more conflict than no deposit policy.
Know the payment trade-offs
Payment providers charge their own processing fees and may have payout timing, account review or refund rules. PayPal Business is the intended Built Different V1 provider, but the provider controls its account terms and fees. Keep records of each payment, refund and adjustment in a way you can reconcile with your own books.
Make the experience trustworthy
- Show the business name and contact information on the payment path.
- Give the customer a confirmation they can keep.
- Make the amount, currency and service unmistakable before payment.
- Keep booking and payment records together where possible.
- Test a successful payment, a failed payment and a cancellation from a phone.