How to Accept Payments at Booking (Complete Guide)

Accepting payment at the time of booking is one of the most impactful changes a service business can make. It reduces no-shows by up to 55%, improves cash flow, eliminates awkward payment conversations at checkout, and signals professionalism to clients.

Yet many service businesses still only accept payment after the service is delivered — leaving money on the table and their schedules vulnerable to last-minute cancellations. Here's how to set up payment collection at booking and the strategies that maximize results.

Why Collect Payment at Booking?

Dramatically Reduce No-Shows

When clients have money invested in an appointment, they show up. Research shows that requiring even a small deposit reduces no-show rates by 40–55%. A $25 deposit on a $100 service changes the psychological calculus — the appointment goes from "something I planned to do" to "something I've already committed to."

Improve Cash Flow

Collecting deposits upfront means revenue starts flowing before the service is delivered. For businesses with high overhead (rent, staff salaries, supplies), this predictability matters. You're no longer waiting for the end of each appointment to get paid.

Reduce Payment Friction at Checkout

When clients prepay, the checkout experience is seamless. No card processing delays, no splitting bills, no "I forgot my wallet" moments. The client walks out feeling good, and your staff can focus on scheduling the next visit rather than running transactions.

Filter for Committed Clients

A client willing to put down a deposit or prepay is signaling genuine intent. This naturally reduces the number of casual or speculative bookings that often result in cancellations.

Payment Options: Which to Offer

Full Prepayment

Charge the entire service price at the time of booking. Best for fixed-price services where the scope is clear (yoga classes, standard haircuts, massage sessions). Full prepayment virtually eliminates no-shows but may create booking friction for higher-priced services.

Deposit (Partial Payment)

Collect a percentage or flat amount upfront, with the remainder due at the appointment. This is the most popular approach for service businesses because it reduces no-shows while keeping the booking barrier manageable.

Recommended Deposit Amounts

• Low-cost services ($50–$100): $15–$25 deposit or 25% of service price
• Mid-range services ($100–$300): $25–$75 deposit or 25–50% of service price
• High-value services ($300+): $50–$150 deposit or 20–30% of service price

Card on File

Collect credit card details at booking without charging immediately. The card is charged only for late cancellations or no-shows according to your cancellation policy. This provides a safety net without any upfront charge to the client.

Package/Membership Prepayment

Sell bundles (5 sessions for the price of 4) or monthly memberships that clients prepay for. This guarantees revenue, increases commitment, and is especially effective for recurring services like fitness training, therapy, and regular grooming appointments.

Setting Up Payment Collection

Step 1: Choose a Payment Processor

Your booking software should integrate with at least one major payment processor. The most common options:

• Stripe: 2.9% + $0.30 per transaction. Widely supported, excellent for online payments, and easy to set up.
• Square: 2.6% + $0.10 for in-person, 2.9% + $0.30 for online. Great if you also need a physical card reader.
• PayPal: 2.99% + $0.49 per transaction. Familiar to many consumers, but higher fees.

For most service businesses, Stripe or Square offers the best combination of low fees, easy integration, and reliability.

Step 2: Configure Payment Rules in Your Booking Software

Set up your booking platform to collect payment during the booking flow:

• Choose which services require payment at booking (you may not need it for all services)
• Set the deposit amount (fixed or percentage)
• Configure what happens for cancellations (refund window, partial refund, etc.)
• Decide whether to require a card on file even when no upfront charge is made

Step 3: Communicate Payment Requirements Clearly

Transparency is critical. Clients should know about payment requirements before they start the booking process:

• Display deposit requirements on your booking page
• Explain what happens with the deposit (applied to the total, refundable within X hours)
• State your cancellation/refund policy clearly
• Use reassuring language about payment security

Step 4: Automate Receipts and Confirmations

After payment, automatically send:

• A receipt showing the amount charged and the remaining balance (if any)
• Appointment confirmation with all details
• Cancellation and refund policy summary

Handling Common Client Objections

"Why do I have to pay upfront?"

Frame it as a benefit: "The deposit secures your preferred time slot and is applied to your total. This allows us to hold the time exclusively for you." Most clients understand and appreciate this.

"I'm worried about getting charged if I need to cancel"

Be clear about your refund policy: "You can cancel or reschedule with 24 hours' notice for a full refund of your deposit. We just ask for advance notice so we can offer the time to someone else."

"I don't want to enter my card details online"

Assure clients about security: "Your payment is processed through [Stripe/Square], which uses bank-level encryption. We never see or store your card number." You can also offer an alternative: "You're welcome to call us to book with payment over the phone."

Measuring the Impact

Track these metrics before and after implementing payments at booking:

• No-show rate: Expect a 40–55% reduction
• Booking conversion rate: Monitor for any drop (a small decrease is normal and offset by fewer no-shows)
• Revenue per slot: Should increase as more booked slots are actually fulfilled
• Cash flow timing: Track how prepayment affects your weekly/monthly cash position
• Client feedback: Listen for any friction points in the payment experience

Start Collecting Payments at Booking

Accepting payment at booking is a proven strategy that reduces no-shows, improves cash flow, and creates a more professional client experience. Start with deposits on your highest-value or highest-no-show services and expand from there.

SchedulingKit integrates seamlessly with Stripe and Square to collect deposits and full payments during the booking flow. Set your deposit amounts, configure refund policies, and automate receipts — all from one platform. Get started on the free plan and protect your revenue today. Try SchedulingKit free.