Start with a clear booking policy, then choose how to collect and record the deposit. Tell guests what the payment covers, how it comes off the final bill and what happens if either side cancels. Taking money is only one step; staff also need a way to find it, apply it and deal with changes fairly.
This guide helps organise that process for consumer bookings. It is not a ready-made legal policy: have the actual wording checked for your business before using it.
Do not assume a deposit is automatically yours to keep
The Competition and Markets Authority says a cancellation term must be fair, even where the customer signed it. Generally, what a business retains should reflect actual losses directly caused by the cancellation, and the business must take reasonable steps to reduce those losses, such as reselling the service [1].
The CMA's business guidance also warns against making prepayments non-refundable regardless of the circumstances, charging for losses you could reasonably reduce, or receiving compensation twice for the same loss. Terms and notices must be fair and transparent [2].
Calling a payment “non-refundable” does not settle the question. Keep your policy, the booking circumstances and what actually happened together when reviewing a cancellation. Avoid copying another restaurant's wording as if it had been checked for yours. If a guest later disputes a deposit with their bank, that record is your evidence: our restaurant chargeback guide explains how to prepare a response.
Decide which bookings need a deposit
Write down the business problem you are trying to address. You might be planning a prepaid event, preparing a special menu or reserving a large part of your dining room. These situations need more thought than applying one rule to every walk-in and table booking.
Before setting an amount, ask:
- What do you commit to before the guest arrives?
- At what point do you order food or turn away other bookings?
- Can the space be resold if someone cancels?
- Who can approve an exception or a refund?
- How will the guest know the policy before paying?
Do not choose a figure solely because a nearby restaurant uses it. Use the answers to brief whoever reviews your terms, including the way you handle reduced party sizes and changes of date.
Keep a distinction between paying a deposit now and agreeing that a card may be charged later. They are different processes. If you want a card-on-file or no-show charging arrangement, ask your payment provider what service and authorisation are required. Do not create one by writing down a guest's card details.
Show guests the information before collecting payment
Prepare a short booking summary your team can send or read consistently. It should explain the event or table booking, party size, date, time, payment due and how the deposit is applied to the bill.
Alongside that summary, show the cancellation and change policy in plain language. Include how to contact you and what happens if the restaurant cannot honour the booking. Ask the person reviewing your policy to check these situations, rather than considering only a guest who never arrives.
Send a confirmation after payment with a booking reference and a route to ask questions. Keep a record of the terms presented at the time. That is more useful than updating a web page later and assuming you can reconstruct what the guest saw.
Choose a payment method your provider supports
Ask whether a hosted payment link fits the way you take bookings. Confirm who creates the link, how you identify the successful transaction and what the guest receives. If your process is telephone-based, ask about the approved remote-payment method rather than assuming the usual in-person price applies.
Through TrustPOS, Shift4 Solo includes payment links and manual payments. Remote-payment pricing is not recorded in our verified offer details, so it must be confirmed before you compare costs. A feature being available does not establish the fee, suitability or protection for a particular booking process.
Our phone-payment guide explains the practical difference between a payment link and taking a keyed-in payment. Neither method replaces a clear booking record or a fair cancellation policy.
Link the payment to the booking
Keep a simple record that authorised staff can find during service. You do not need to copy sensitive card data into it. Use the payment reference supplied by your provider.
| Record | What the team needs to know |
|---|---|
| Booking reference | Which reservation the payment belongs to |
| Guest contact | How to discuss changes using the agreed contact route |
| Service details | Date, time, party size and agreed menu where applicable |
| Deposit paid | Amount, payment date and provider transaction reference |
| Terms presented | The version given before the guest paid |
| Changes | Who agreed a date, party-size or refund change |
| Final bill | Whether the deposit has already been deducted |
Choose one place as the record of truth. A note in a diary, an email and a till entry can become confusing if nobody owns the update. Name the person responsible for keeping them consistent.
Make the final bill easy to explain
Before service, check which bookings have deposits and how staff will apply them. Ask your till supplier to demonstrate the intended workflow on your actual package. Do not assume a booking platform and a till exchange this information unless the supplier has confirmed that connection.
Example: a fictional party's final food and drink bill is £240 and a £60 deposit has already been paid. The remaining amount is £180, before any separately agreed additions. The guest-facing bill and your internal record should both make clear that the deposit has been applied once. These are invented amounts, not a recommended deposit size.
Train staff on what to do if the payment cannot be found. Have a manager check the provider reference rather than immediately asking the guest to pay the deposit again.
Give changes and cancellations an owner
When a guest cancels, record when they told you, what was booked and what action you took. If you offer the space again, record the outcome. Keep any calculation you use to explain money retained beside the relevant policy and booking record, then have the responsible manager review it.
If there is a disagreement, explain the decision calmly and provide the calculation. Where the wording or entitlement is unclear, get advice rather than treating a staff member's recollection as the final answer.
Before introducing deposits, walk the whole process through with your team: booking, payment, confirmation, change, final bill and refund. Choose the payment or till setup after identifying that workflow. A lower processing rate alone does not tell you whether the booking process will work for your restaurant.
Sources
- CMA: Cancelling goods or services — checked 18 October 2026; general consumer cancellation guidance.
- CMA: Writing a fair contract for customers — updated 22 July 2026; checked 18 October 2026, especially the section on customer cancellation.
This guide is general information, not financial advice. Any saving depends on your current charges, card mix and final terms.