What is a prepayment?
A prepayment is money collected from the client when they book, before the service happens. It can be the full price or a partial deposit - say 20-50% of the total. Any remaining balance gets paid at the appointment.
How it works in online booking
You require a 50% deposit for online bookings. A client books a $120 service and pays $60 via Stripe on the spot. Show up? Pay the other $60 at the visit. Don't show up? You keep the deposit. No-shows drop from 20% to under 5% the moment prepayments go live. Payment processing runs through providers connected in your booking integrations.
Benefits
- No-shows plummet from 20% to under 5% - clients who pay upfront actually come
- Revenue is guaranteed even when someone cancels last-minute
- Automatic payment processing removes awkward money conversations at the door
Frequently Asked Questions
What percentage should a booking prepayment be?
Most service businesses charge 20-50%. High no-show services benefit from 50% or full prepayment. Consultants often charge 100% upfront. Start at 30%, measure the effect on bookings and no-shows, then adjust.
Does requiring prepayment reduce the number of bookings?
Initial bookings dip 5-10%. But the ones you keep are from clients who actually show up. Net result: more completed appointments and higher revenue. A business with 100 bookings and 20 no-shows earns less than one with 90 bookings and 3 no-shows.
