Deposits & Refunds

Manage deposits and refunds efficiently to protect your revenue while providing excellent customer experience.

Deposit Collection

When Deposits Are Collected

Deposits are collected at the time of booking when your policy requires them:

Automatic Collection Triggers:

• Party size exceeds threshold (e.g., 6+ guests)
• Booking during peak times (Friday/Saturday)
• Special events and experiences
• Customer with previous no-show history
• High-value reservations
• Holiday periods

Manual Collection:

• Staff can require deposit for any booking
• Override for VIP customers
• Based on specific circumstances

Collection Process

Step-by-Step Flow:

1. Customer Makes Booking

• Selects date, time, party size
• Sees deposit requirement displayed
• Views cancellation policy terms

2. Deposit Amount Calculated

• System calculates based on your rules
• Per person amount × party size, OR
• Fixed booking amount, OR
• Percentage of estimated bill

3. Payment Processing

• Secure Stripe checkout page
• Customer enters payment details
• Card authorized for deposit amount
• Important: Card is authorized, not charged immediately

4. Booking Confirmed

• Confirmation email sent
• Deposit amount shown clearly
• How deposit will be applied explained
• Cancellation policy reiterated

5. Deposit Held

• Authorization on customer's card
• Funds reserved but not captured
• Remains until booking date or cancellation
• Automatically expires after 7 days (renewed if needed)

Payment Security

All payment processing through Stripe:

Security Features:

• PCI DSS compliant
• Card details never stored on your servers
• Encrypted transmission
• 3D Secure authentication when required
• Fraud detection

Customer Protection:

• Payment protection
• Dispute management
• Chargeback handling
• Customer support

Deposit Application

On Successful Booking

When the guest arrives and dines:

At the End of Meal:

1. Staff processes final bill in system
2. Marks booking as "Completed"
3. Deposit automatically deducted from total
4. Customer pays remaining balance
5. Combined receipt provided showing:
   • Deposit amount
   • Meal charges
   • Deposit deduction
   • Balance paid

Example Receipt:

Food & Drinks:        £120.00
Service Charge:       £12.00
                     --------
Subtotal:            £132.00
Deposit (Applied):    -£40.00
                     --------
Balance Due:         £92.00

On Timely Cancellation

When customer cancels within the acceptable window:

Automatic Refund Process:

1. Customer cancels online or via phone/email
2. System checks cancellation time vs. deadline
3. Determines no penalty applies
4. Initiates automatic refund
5. Sends confirmation email to customer

Timeline:

• Refund initiated: Immediately
• Stripe processes: 1-2 business days
• Bank posts credit: 3-5 business days
• Total typical time: 5-7 business days

Customer Communication:

Your Cancellation Confirmed

Booking: [Details]
Cancelled: [Date/Time]
Deposit: £40.00
Refund Status: Processing

You should see the refund in your account within 5-7 
business days. If you have questions, contact us at 
[email/phone].

Late Cancellation & Penalties

Applying Penalties

When cancellation occurs within the penalty window:

Automatic Process:

1. Cancellation Detected

• Customer cancels
• System checks time vs. deadline
• Determines penalty applies

2. Penalty Calculated

• Based on your policy rules
• May use deposit amount or calculate separately
• Applied to card used for booking

3. Payment Processed

• Deposit captured (if held), OR
• Card charged for penalty amount
• Transaction processed immediately

4. Notification Sent

• Email explaining charge
• Policy terms reiterated
• Invoice provided
• Contact information included

Penalty Calculation Examples

Example 1: Deposit Forfeiture

• Policy: Forfeit £10/person deposit if cancelled <24hrs
• Booking: 8 guests, £80 deposit held
• Cancellation: 12 hours before
• Result: Full £80 deposit charged, no refund

Example 2: Percentage Charge

• Policy: 50% of estimated bill if cancelled <24hrs
• Booking: 6 guests, £30/person average = £180 estimated
• Cancellation: 18 hours before
• Result: £90 charged (50% of £180)

Example 3: Tiered Penalties

• Policy:

  • 24hrs: No charge

  • 12-24hrs: 25% of bill
  • <12hrs: 50% of bill
• Booking: 4 guests, £120 estimated bill
• Cancellation: 15 hours before
• Result: £30 charged (25% of £120)

No-Show Charges

Processing No-Show Fees

When a customer doesn't show up:

Automatic Detection & Processing:

1. Grace Period Expires

• Reservation time + grace period (e.g., 15 min) passes
• No "Seated" status recorded in system
• No cancellation received

2. No-Show Marked

• System automatically marks as no-show, OR
• Staff manually marks if guest definitely not coming

3. Charge Calculated

• Based on no-show penalty in policy
• Often 50-100% of estimated bill
• May include deposit forfeiture

4. Payment Processed

• Card on file charged
• Invoice generated
• Transaction recorded

5. Customer Notified

• Email sent explaining charge
• Policy reminder included
• Opportunity to explain/dispute
• Contact information provided

No-Show Communication Template

Subject: Missed Reservation - [Venue Name]

Dear [Customer],

We noticed you didn't make it to your reservation yesterday:

Date: [Date]
Time: [Time]
Party: [Size]

Per our cancellation policy, no-shows are charged [penalty].
Amount charged: £[Amount]

We understand things come up. If you experienced an emergency,
please contact us at [contact] and we'll be happy to discuss.

We hope to serve you in the future.

Best regards,
[Venue Name]

Refund Management

Processing Refunds

Refunds are mostly automatic but can be processed manually if needed.

Automatic Refund Triggers:

• Timely cancellation (within policy window)
• Venue-initiated cancellation
• System error or duplicate charge
• Approved dispute resolution

Manual Refund Process:

1. Navigate to reservation details
2. Click "Issue Refund"
3. Select refund type:
   • Full refund
   • Partial refund (specify amount)
   • Custom amount
4. Select reason from dropdown
5. Add explanatory note
6. Process refund

Refund Timeline

Understanding the refund process timeline:

Immediate (0-1 hour):

• Refund initiated in system
• Customer receives confirmation email
• Shows as "pending" in their account

1-2 Business Days:

• Stripe processes refund request
• Funds released from merchant account
• Sent to customer's bank

3-5 Business Days:

• Customer's bank posts credit
• Appears in customer's account statement
• Shows as refund from your venue

Total Time: 5-7 Business Days (typical)

• Some banks take up to 10 business days
• Weekends and holidays add time
• International cards may take longer

Partial Refunds

Sometimes a partial refund is appropriate:

When to Use:

• Customer cancels slightly outside window (goodwill)
• Split penalty with customer
• First-time offender mercy
• Exceptional circumstances

How to Process:

1. Calculate appropriate partial amount
2. Process partial refund for difference
3. Clearly communicate what's being charged vs. refunded
4. Document reasoning

Example:

Policy: £100 penalty for late cancellation
Customer: Cancelled 23 hours before (just missed 24hr window)
Decision: Charge 50% as goodwill gesture
Process: Refund £50, charge £50

Stripe Integration

Setup Requirements

Ensure Stripe is properly configured:

Prerequisites:

• Active Stripe account
• Connected to your Grab A Table account
• Payment methods enabled
• Webhooks configured

Configuration Check:

1. Go to Settings > Payments
2. Verify Stripe connection status: Connected ✓
3. Check supported payment methods
4. Test with small transaction

Webhook Configuration

Webhooks ensure proper communication:

Required Webhooks:

• charge.succeeded - Payment captured
• charge.failed - Payment failed
• refund.created - Refund initiated
• refund.failed - Refund failed

Automatic Setup:

• Webhooks configured automatically
• System monitors and alerts on failures
• Self-healing for temporary issues

Payment Disputes

Handling customer disputes through Stripe:

Dispute Process:

1. Customer disputes charge with their bank
2. Stripe notifies you via email and dashboard
3. You have 7 days to respond with evidence
4. Provide:
   • Booking confirmation with policy acceptance
   • Cancellation timestamp and policy
   • Communication history
   • Terms of service

Evidence to Provide:

• Screenshot of booking confirmation email
• Policy text customer agreed to
• Timestamp of cancellation vs. deadline
• Any communication with customer
• Previous no-show history (if relevant)

Resolution:

• Stripe reviews evidence
• Decision typically within 60-90 days
• If you win: Funds retained, no action needed
• If you lose: Funds returned to customer, dispute fee charged

Accounting & Reconciliation

Financial Records

Track all deposit and refund activity:

Deposit Dashboard:

• Total deposits held
• Pending authorizations
• Applied to bills
• Forfeited (penalties)
• Refunded

Transaction History:

• Date/time of each transaction
• Customer name
• Amount
• Type (deposit, penalty, refund)
• Status
• Associated reservation

Reconciliation

Match financial records with bank statements:

Daily Reconciliation:

1. Export day's transactions
2. Compare to Stripe dashboard
3. Verify amounts match
4. Note any discrepancies
5. Investigate and resolve

Monthly Reconciliation:

1. Generate full month report
2. Match to bank statements
3. Account for refund timing differences
4. Document any adjustments

Tax Implications

Important tax considerations:

Deposits:

• Not taxable income when collected
• Become taxable when applied to bill or forfeited
• Record correctly in accounting system

Penalty Fees:

• Generally taxable as service income
• Consult accountant for local regulations
• May vary by jurisdiction

Refunds:

• Reduce taxable income
• Document properly
• Track for tax reporting

Troubleshooting

Common Issues

Deposits Not Collecting:

• Verify Stripe connection active
• Check policy configuration enabled
• Ensure party size triggers deposit
• Test payment methods work
• Review error logs

Refunds Not Processing:

• Confirm webhook configuration
• Check Stripe account balance sufficient
• Verify correct payment method on file
• Review failed refund queue
• Check for expired authorizations

Incorrect Charge Amounts:

• Review penalty calculation settings
• Verify estimated bill amounts correct
• Check tiered penalty configuration
• Ensure party size counted correctly

Customer Can't Complete Booking:

• Try different payment method
• Check card authorization limits
• Verify 3D Secure configured
• Test with lower amount
• Check Stripe account restrictions

Support Resources

Self-Help:

• Check system status page
• Review documentation
• Search knowledge base
• Watch tutorial videos

Contact Support:

• Email: [email protected]
• WhatsApp: https://wa.me/message/GPBDMIVKYIELE1
• Include: Reservation number, error message, screenshot

Best Practices

Deposit Management

✓ Do:

• Communicate deposit requirement clearly
• Show how deposit will be applied
• Process refunds promptly
• Keep detailed records
• Monitor dispute rates

✗ Don't:

• Surprise customers with deposits
• Hold deposits longer than necessary
• Make refunds difficult
• Ignore customer questions
• Forget to apply to final bills

Customer Service

✓ Do:

• Respond to refund questions quickly
• Provide clear explanations
• Be flexible when appropriate
• Document all decisions
• Train staff thoroughly

✗ Don't:

• Be inflexible with genuine issues
• Hide behind policy for every situation
• Make customers fight for fair refunds
• Ignore dispute notifications
• Fail to follow up

Related Documentation

• Cancellation Overview - Policy basics
• Policy Configuration - Setup and rules
• Communication & Enforcement - Enforcement practices
• Analytics & Best Practices - Measuring effectiveness
• Licences & Billing - General payment processing

Need Help?

Questions about deposits, refunds, or Stripe integration?

• Email: [email protected]
• WhatsApp: https://wa.me/message/GPBDMIVKYIELE1