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Appointment Deposits

I've noticed lately when going to get beauty services a lot of people are requiring a deposit.  Not a hold credit card on file but an actual deposit-- usually half of the service price or $100.  

 

 

I'm thinking of doing this in my studio for new customers.  

 

Wondering if anyone else here is requiring deposits for appointments.  What are the pros and cons?  How are you keeping track? What is your refund policy on it? 

Doran

Esthetician
Haute Beauty Guide
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Id like to implement this also, I think I would cut down on no show customers. Simply having the card on file is no good when they don't have money on the card. 

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Hi! We take deposits now as well instead of holding cards on file bc theres no guarantee there's money on the card and they can even lock their card. Square has now sent a warning that starting April 11th they are no longer refunding processing fees from deposits or appointments. Huge disappointment which is going to cause on such a financial loss.

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Anytime I take deposits (I do extensions) I always say they are nonrefundable. I do this to weed out casualness as well as to avoid a refund if there is something out of anyone’s control. If a refund is needed, then I would recoup that fee. 

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What I do is send them a Square invoice for a reservation deposit. 
In the notes section I state what the deposit is for, date and time and list my no-show/cancellation policy. I also state that if they do come for their scheduled appt, the reservation deposit will be applied toward their service. I do this for all new clients, but sometimes I get existing clients who no-show and I message them and let them know they need to pay nano-show fee before we rebook. 

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Great idea, I like that flow. The only deterrent I have to doing it this way is there is a higher fee when taking a payment through an invoice. 

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Super Seller

While it does cut down on no shows, I found the same results when I required a card on file. One thing with deposits though, if you're refunding deposits and they cancel during your cancellation period, you may want to look into how Square is processing that payment reversal. I seem to remember Square is no longer refunding processing fees so you'd eat that cost.

UV-Free Tanning Salon Owner, Northern California (Campbell)
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