When a customer pays part of the price in advance to book (a table for a group, a room, a treatment), that money is a deposit. In everyday English the word covers several situations; French law, which many guides refer to, separates two kinds: arrhes and acompte. The word used changes what happens if someone cancels.
Arrhes: either side can withdraw
With arrhes, each party may back out (article 1590 of the French Civil Code): if the customer cancels, they forfeit the arrhes; if the business cancels, it must repay double. Between a business and a consumer, French consumer law presumes that money paid in advance is arrhes unless the contract says otherwise.
Acompte: a binding part-payment
An acompte is a first instalment that commits both parties. A customer who cancels may in principle still owe the full price, and the business must deliver the service. It is stricter and must be stated clearly.
A concrete example
A restaurant asks €10 per person for a group of 12 on New Year’s Eve. If it says “arrhes” (or says nothing), a customer who cancels loses the €120 but owes nothing more; if the restaurant cancels, it repays €240. If it says “acompte” and the customer accepts, a customer who cancels may in principle have to pay for the planned meal.
Outside France
Other countries use different rules and words (refundable or non-refundable deposit, part-payment). Whatever the country, the safe rule is the same: write the cancellation terms clearly and show them before the customer pays.
Rules and templates are in the booking cancellation policy guide.
Go further
Related terms
No-show
A no-show is a customer who booked a table, appointment or room, doesn’t turn up and doesn’t warn you. The slot stays empty when it could have gone to someone else.
Commission-free booking
Commission-free booking means an online booking system where the business pays a flat subscription (or nothing) instead of handing over a fee for every booking or customer received.
Legal notice (website imprint)
A legal notice (or imprint) is the page of a business website that says who publishes it, how to contact them and their registration details, as required by EU e-commerce rules and national laws.