How to take deposits and part payments online

Deposits protect your time and stock. A caterer buying ingredients, a photographer holding a wedding date, a builder ordering materials or an agency booking a team for a project all take on cost before the customer has paid in full. Asking for part of the price upfront turns a verbal booking into a commitment.

Taking deposits online is straightforward once you decide on a policy and set up your documents so that everyone can see what has been paid and what is still owed.

Write a clear deposit policy

Before you ask anyone for money, decide and write down:

• How much. A fixed amount or a percentage of the total. Larger or custom jobs usually justify a larger deposit.
• When it is due. Typically before you confirm a booking date or order materials.
• When the balance is due. On delivery, on a set date before an event, or in milestones.
• What happens on cancellation. Whether the deposit is refundable, partly refundable or forfeited, and under what conditions.

Put this on your quote and your booking confirmation, not only on your website. Customers are far less likely to dispute a deposit they agreed to in writing.

A note on consumer cancellations

If you sell to consumers, the Consumer Protection Act affects how much you may keep when a customer cancels an advance booking or reservation: generally only a reasonable cancellation charge. If deposits are a big part of your business, have your terms checked so that your cancellation policy is enforceable.

Three ways to structure deposits

1. Deposit invoice, then balance invoice

Issue an invoice for the deposit amount, then a final invoice for the balance once the work is done. This is clear and easy to reconcile, and each payment matches exactly one document.

2. One invoice, paid in parts

Issue a single invoice for the full amount and record each payment against it as it arrives. The invoice shows the amount paid and the balance outstanding, which suits customers who pay in instalments by EFT.

3. Payment link for the deposit

For quick bookings, send a payment link for the deposit amount, then invoice the balance later. This is ideal when a customer books by phone or chat and you want the date secured immediately.

Whichever structure you use, start with a quote that shows the full price, the deposit and the balance, so there are no surprises.

Let customers pay instantly

A deposit is about speed: you want the commitment before the customer changes their mind or books someone else. Card and instant EFT payments confirm in minutes, while a manual EFT can take longer to reflect and needs to be matched to the right booking. See how long an EFT takes and instant EFT explained.

Never release a booking or goods on a proof of payment alone. Wait until the payment is confirmed by your gateway or shows in your bank account. See EFT proof of payment verification.

VAT on deposits

If you are registered for VAT, the time of supply is generally the earlier of when you issue an invoice or receive a payment. A deposit received can therefore trigger VAT on that amount, even before the work is done. Ask your accountant how this applies to your business, and keep your deposit and balance documents consistent with the VAT you declare. See VAT invoice requirements in South Africa.

Refunding a deposit

When a deposit has to be returned, in full or in part, refund it against the original payment where possible, and issue a credit note so that your records show why money went back. See credit note vs refund and how to process a refund.

Keep track of balances

The risk with deposits is losing track of the balance. A few habits help:

• Use one customer record per client so that deposits, invoices and payments sit together.
• Review open balances weekly, especially for upcoming events or deliveries.
• Send the balance invoice or reminder in good time before the due date.
• Run an aged receivables report so that unpaid balances don't slip through.

How CentraPoint helps

CentraPoint supports each of the deposit structures above. You can send a quote, convert it into an invoice when the customer accepts, and every invoice carries a pay-by-link for its outstanding balance. Invoices track the amount paid and the amount still due, and show as partially paid when some money has been received; you can record EFT or cash payments against an invoice as they arrive.

For fast bookings, a payment link collects a deposit through your connected gateway by card, instant EFT or other methods the gateway supports, with the status updated automatically from verified gateway notifications. Credit notes and refunds handle cancellations, and reports show what is outstanding. See pricing for the plans that include invoicing and payment links.

Frequently asked questions

How much deposit should I ask for?

It depends on your upfront costs and the risk of cancellation. Many businesses ask enough to cover materials or the cost of holding a date. Whatever you choose, state it clearly on the quote.

Is a deposit refundable?

That depends on your terms and, for consumers, the Consumer Protection Act. Set out your cancellation policy in writing before taking payment.

Should the deposit and balance be on one invoice or two?

Both work. Two invoices are simpler to reconcile; one invoice paid in parts gives the customer a single document with a running balance. Choose one approach and use it consistently.