How to collect deposits for restaurant bookings
Taking a card deposit at the point of booking is the most reliable way to reduce no-shows for your highest-value reservations. Done well, it does not deter genuine guests — it filters out casual bookings and communicates that your time and preparation have real value.
This guide covers when to require a deposit, how much to charge, how to communicate the policy clearly, and the mechanics of how card pre-authorisation works.
When to require a deposit
Not every booking warrants a deposit. Reserve them for situations where the revenue risk is real and the preparation cost is high:
- Large groups — a party of 8 who does not arrive is a very different problem to a couple. Most operators set a threshold (6+, 8+, or 10+) based on their capacity.
- High-demand occasions— Christmas, New Year's Eve, Valentine's Day, Mother's Day. These are often fully booked weeks in advance. A no-show cannot be resold.
- Fixed-price or tasting menu services — when you have pre-ordered specific ingredients, a no-show represents direct food cost written off.
- Private dining rooms — a private room is an exclusive hold. The opportunity cost of a no-show is the entire room.
For a standard dinner service on a Tuesday in February, a deposit is usually unnecessary and may reduce conversion. Apply where the risk justifies it.
How much to charge
There are two common approaches:
Fixed deposit
A single amount per booking — e.g. £25 or £50.
Simpler to communicate. Better for smaller groups. Common for private rooms.
Per-head deposit
An amount per person — e.g. £10 or £15 per head.
Scales with party size. Better for large groups. Reflects actual revenue at risk.
The deposit amount does not need to cover your full average spend — it just needs to be enough that the guest has skin in the game. £5–15 per head is the UK restaurant norm for standard services. For Christmas dinner or a set tasting menu, some operators charge 50–100% of the fixed menu price upfront.
How pre-authorisation works
Posto collects deposits via Stripe. When a guest books a service that requires a deposit, they are taken to a Stripe Checkout page before the booking is confirmed. Their card is pre-authorised — the amount is held, not charged.
- If the guest arrives: the hold is released. Nothing is charged. The deposit was security, not payment.
- If the guest cancels before your cancellation deadline: the hold is released automatically. Define this deadline clearly in your policy.
- If the guest is a no-show: you can choose to capture the deposit. This is a manual decision — Posto does not automatically charge no-shows.
Stripe handles all card data. Posto never sees or stores card numbers. Payouts go to your connected Stripe account via Stripe Connect.
State your policy clearly — before they confirm
Guests must see the deposit amount, what it covers, and your cancellation terms before they complete the booking. Under the Consumer Rights Act 2015, cancellation and refund terms must be clearly stated before a contract is formed.
A clear policy looks like this:
“A deposit of £10 per person is required to confirm this booking. This is released in full when you dine with us. Cancellations made more than 48 hours before your reservation receive a full deposit refund. Cancellations within 48 hours or no-shows forfeit the deposit.”
Keep it plain English. Do not bury it in small print. If a guest is surprised by the policy when they arrive or cancel, the policy was not communicated clearly enough.
UK legal note
Deposits collected at the point of booking are governed by contract law and the Consumer Rights Act 2015. Your cancellation terms must be fair and clearly communicated before the guest confirms. An overly punitive policy (e.g. no refund for cancellations 6 weeks ahead) may be considered an unfair contract term. If in doubt, consult a solicitor.
Stripe deposit collection available on Core and above. 14-day free trial.