{"id":352492,"date":"2019-11-07T08:45:00","date_gmt":"2019-11-07T13:45:00","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/consumer-transactions\/can-businesses-charge-appointment-deposits-and-cancellation-fees.html"},"modified":"2024-02-09T14:26:36","modified_gmt":"2024-02-09T19:26:36","slug":"can-businesses-charge-appointment-deposits-and-cancellation-fees","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/consumer-transactions\/can-businesses-charge-appointment-deposits-and-cancellation-fees.html","title":{"rendered":"Can Businesses Charge Appointment Deposits and Cancellation Fees?"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Can Businesses Charge Appointment Deposits and Cancellation Fees?<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/hannah-hilst\/\">Hannah Hilst<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/melissa-bender-esq\/\">Melissa Bender, Esq.<\/a>\n                | Last updated\n        <time>\n                            February 09, 2024\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>Businesses can legally charge appointment deposits and cancellation fees to mitigate losses from no-shows. These fees must comply with state laws, which often limit unreasonable charges. It&#8217;s crucial to review a business&#8217;s policies before booking so that you understand the fees and terms. Red flags include excessive fees or unclear policies. If a service seems suspicious, contact the business or your state&#8217;s licensing agency. A consumer protection lawyer can also help protect you from unfair practices.<\/p>\n\n    <\/div>\n\n\n\n<p>Yes, a business can charge you to schedule or cancel an appointment. But the law limits these fees.<\/p>\n<p>Prevent these policies from catching you by surprise. Carefully read a business&#8217;s appointment scheduling and cancellation policies. If you notice something odd, like a business requiring you to pay before your reservation, you may wonder if they can legally take your money this way.<\/p>\n<h2>Why Cancellation and Appointment Fees Exist<\/h2>\n<p>Getting your oil change, haircut, or teeth cleaned seemed like a great idea a few weeks ago. But the appointment is today, and you have a schedule conflict. Or you changed your mind and don&#8217;t want to go.<\/p>\n<p>You may be less likely to skip your appointment if you&#8217;d lose a deposit or pay a fee. But if you still do, the business can recover costs through cancellation or extra service fees. Unlike\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/consumer-transactions\/customer-returns-and-refund-laws-by-state.html\">a product return<\/a>, you might not get a refund for an unused service.<\/p>\n<p>Service providers like auto shops, hair salons, and dentist offices can&#8217;t make money during the timeframe they reserved for you. Often, the employees of these businesses only earn income when they serve a client. If a customer cancels, charging a fee is their only way to compensate for the loss.<\/p>\n<h2>When Can Businesses Legally Charge Fees?<\/h2>\n<p>The law allows businesses to create policies, fees, and service agreements as they wish \u2014 as long as they don&#8217;t violate\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-laws-and-regulations\/compliance-information-and-resources-state-by-state.html\">the laws of your state<\/a>. You can usually find policies and fees in an advertisement disclaimer or the website&#8217;s fine print.<\/p>\n<p>Before you book an appointment, look for terms such as:<\/p>\n<ul>\n<li>A non-refundable deposit requirement to hold a time slot<\/li>\n<li>Specific dollar amounts for cancellation fees<\/li>\n<li>The ability to book one appointment or spend a certain amount to get one free<\/li>\n<li>Exact hour cancellation windows (often 24 or 48 hours in advance)<\/li>\n<li>A requirement to enter a credit card to hold the appointment<\/li>\n<li>Fees that apply to services you book or products you buy on the same day<\/li>\n<li>A requirement to put a percentage down (such as 50%) to reserve the service<\/li>\n<li>A deposit requirement for services over a particular value, such as over $100<\/li>\n<\/ul>\n<p>These practices are typically legal. They help businesses ensure they can recoup the lost revenue due to no-shows or last-minute cancellations.<\/p>\n<h3>Medical Copayments<\/h3>\n<p>Medical services are different than most other paid services. Instead of an appointment fee, they usually have\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/insurance\/what-is-an-insurance-copay.html\">copays<\/a>. These copayments go through insurance. Copays are standard practice in the medical industry and are often unavoidable.<\/p>\n<h3>Prepaid Travel Reservations<\/h3>\n<p>Some business types require you to prepay for your service. For example, you may pay hundreds of dollars to reserve a\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/travel-rules-and-rights\/hotel-questions-and-answers.html\">hotel room<\/a>\u00a0or a\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/travel-rules-and-rights\/plane-ticket-refunds-and-the-law.html\">flight<\/a>. Read and follow the business policies to protect your purchase. You might have a short time to cancel and refund your reservation.<\/p>\n<h2>Can a Business Ask for My Credit Card Details Ahead of Time?<\/h2>\n<p>Yes, a business can require you to\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/consumer-transactions\/paying-online-for-goods.html\">give your credit card information<\/a>\u00a0before it reserves your appointment. It can also charge your card \u2014 within reason. When you schedule appointments, you must agree to the terms of service, including paying any upfront costs.<\/p>\n<p>Otherwise, calling clients to charge cancellation fees could be difficult once they have missed the appointment. Most people won&#8217;t answer the phone or willingly hand over their credit card information.<\/p>\n<h2>Illegal Practices Under Consumer Protection Laws<\/h2>\n<p>Generally, businesses can&#8217;t charge you an unreasonably high fee for services they didn&#8217;t perform. Usually, a late cancellation or no-show fee can&#8217;t be as much as the total price you would have paid for the service.<\/p>\n<p>For example, a salon couldn&#8217;t charge you $300 for a $200 spa treatment you booked. Or the salon can&#8217;t add another fee if it made a scheduling mistake and wants to move your appointment.<\/p>\n<p>Watch for red flags, such as:<\/p>\n<ul>\n<li>The business asks you to pay in full before you&#8217;ve seen it in person<\/li>\n<li>The business owner demands you pay over the phone or online before you can see the facility or talk to the employees<\/li>\n<li>The cancellation fee is 100% or more of the service cost<\/li>\n<li>The fee policies are abnormally confusing, or the business refuses to let you read them<\/li>\n<li>The business charges your card without any notification about how much the reservation fee will be<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.findlaw.com\/consumer\/online-scams\/consumer-scams-faq.html\">Scammers might use fees<\/a>\u00a0to charge customers illegally. Being cautious can help you protect yourself and your money. Consumers have a right to see the business and have some assurance that it will complete the service<a href=\"https:\/\/dictionary.findlaw.com\/definition\/good-faith.html\" target=\"_blank\" rel=\"noopener\">\u00a0in good faith<\/a>.<\/p>\n<h2>Understanding Your State Consumer Protection Laws<\/h2>\n<p>Most states have extensive laws on\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer.html\">your consumer rights<\/a>\u00a0and the specific industry of the service. These are usually called \u201ccodes.&#8221; They list any permanent active\u00a0<a href=\"https:\/\/www.findlaw.com\/state.html\">law in your state<\/a>.<\/p>\n<p>The most relevant laws will be under sections called:<\/p>\n<ul>\n<li>Consumer Protection<\/li>\n<li>Business Regulations<\/li>\n<li>Businesses and Professions<\/li>\n<\/ul>\n<p>It is wise to know your rights as a consumer and question practices that seem illegal to you. This awareness helps keep businesses and employees from getting away with mistreating clients or otherwise acting illegally.<\/p>\n<h2>What To Do If a Service Seems Suspicious<\/h2>\n<p>Call the business to ask questions about their policy if you need clarification. You can also call your\u00a0<a href=\"https:\/\/www.npdb.hrsa.gov\/orgs\/stateBoard.jsp\" target=\"_blank\" rel=\"noopener\">state&#8217;s licensing agency<\/a>\u00a0to question a business practice. You may want to report a suspicious situation to the\u00a0<a href=\"https:\/\/www.bbb.org\/\" target=\"_blank\" rel=\"noopener\">Better Business Bureau (BBB)<\/a>.<\/p>\n<p>Some businesses don&#8217;t charge for situations outside your control, like a car accident, family emergency, or extreme weather. You can call to explain your circumstances. The manager or owner might offer a full refund for your missed appointment at their discretion.<\/p>\n<p>Booking online can also have technical issues or automatic form-fill mistakes. Always check for accurate dates, addresses, confirmation emails, and additional policies when booking online.<\/p>\n<h2>Hiring an Attorney for Consumer Issues<\/h2>\n<p>Small businesses and workers could have the best intentions with their policies but still break a local or state law. Sometimes, all it takes to get your money back is a letter informing the business that its practices are against the law.<\/p>\n<p>But when a business refuses to offer a fair solution, you may want to get legal advice. A\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/consumer-protection\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">consumer law attorney<\/a>\u00a0can review your situation and explain whether you have a claim.<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" 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id=\"clip0_604_3418\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"><\/rect>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"No\"\n                value=\"no\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">No<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-down\" clip-path=\"url(#clip0_604_3423)\">\n                        <path id=\"Vector\"\n                              d=\"M16 0.999995H18.67C19.236 0.989986 19.7859 1.18813 20.2154 1.55681C20.645 1.9255 20.9242 2.43905 21 3V10C20.9242 10.5609 20.645 11.0745 20.2154 11.4432C19.7859 11.8119 19.236 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for=\"was-this-helpful__radio-button--solved-problem\"\n                        >Solved my problem<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--negative\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        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                 id=\"was-this-helpful__radio-button--negative-other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"fl-section-sidebar\"><div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Consumer legal issues typically need an attorney&#8217;s support\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    You can hire an attorney to enforce your rights for safe products, fair transactions, and legal credit, banking and related financial matters\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <p>Legal cases for identity theft, scams, or the Equal Credit Opportunity Act can be complicated and slow. An attorney can offer tailored advice and help prevent common mistakes.<\/p>\n\n            <\/div>\n                            <div class=\"fl-editors-summary-content-link fl-flex\" data-testid=\"fl-editors-summary-content-link\">\n                <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                <p class=\"find-attorney\"><a href=\"https:\/\/lawyers.findlaw.com\/consumer-protection\/#USER_GEO\/?fli=esum:0803\" target=\"_blank\" rel=\"noopener\">Find a local attorney<\/a><\/p>\n\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<div class=\"email-subscription fl-mb30\">\n    <div class=\"email-subscription-header\">\n        <div class=\"email-subscription-header-content\">\n            <h3 class=\"fl-callout-sm fl-no-margin\">Stay Up-to-Date With How the Law Affects Your Life<\/h3>\n        <\/div>\n        <div class=\"email-subscription-header-image fl-flex fl-items-end\">\n            <img decoding=\"async\"\n                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<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>You haven&#8217;t received a service, so is it fair to pay the business? FindLaw explains whether deposits, cancellation policies, and no-show fees are legal.<\/p>\n","protected":false},"author":41135,"featured_media":0,"parent":352484,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/ArticleWithBreadcrumbsController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":[]},"categories":[2732],"tags":[],"state_laws_tags":[],"flmsa":[],"class_list":["post-352492","page","type-page","status-publish","hentry","category-consumer"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/352492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/users\/41135"}],"replies":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/comments?post=352492"}],"version-history":[{"count":0,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/352492\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/352484"}],"wp:attachment":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/media?parent=352492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/categories?post=352492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/tags?post=352492"},{"taxonomy":"state_laws_tags","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/state_laws_tags?post=352492"},{"taxonomy":"flmsa","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/flmsa?post=352492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}