Can Restaurants Keep a Deposit? 2026 Rules, Refunds & How to Collect Online
A "deposit" is not the same as legal "earnest money" — and that difference decides whether you can keep the money on a no-show. A restaurant-owner's guide to 2026 deposit rules, common disputes, and a ready-to-use policy template.
First, is it a "deposit" or legal "earnest money"?
Many owners use the words interchangeably, but legally they differ — and the difference decides whether you can keep the money when a guest no-shows.
- Earnest money (a civil-code term): once paid, the contract is formed. If the payer (guest) breaches, they generally cannot claim it back (it can be forfeited); if the recipient (restaurant) breaches, it must be returned at double.
- "Deposit" (everyday word): not a strict legal term; in practice it is often treated as earnest money or a prepayment, governed by what both sides agreed in advance.
In plain terms: the "keep the money on a no-show" effect doesn't come from the label — it comes from setting the rule clearly in advance and getting the guest's consent.
Can a restaurant refund a deposit? Three scenarios
- Guest shows up on time: the deposit is usually credited toward the bill (most common).
- Guest cancels before the cutoff: whether and how much you refund depends on the policy you posted in advance (e.g. full refund 48h before, none within 24h).
- No-show / fails to arrive: if clearly disclosed in advance and consented to, it can usually be forfeited per the agreement as compensation.
One key idea: "say it in advance." Forfeiting without prior, prominent disclosure carries the highest dispute risk.
How consumer-protection rules see it — common disputes
From a consumer-protection angle, a restaurant deposit usually needs to:
- Be disclosed prominently, in advance: amount, refundability and forfeit conditions must be visible before the guest pays — not buried afterward.
- Not be manifestly unfair: your standard terms must follow good faith; forfeiting the full amount without notice is more likely to be held invalid.
- Be proportionate: the forfeited amount should match actual loss; an excessive penalty can be reduced.
In practice, writing a clear "Reservation / Deposit Policy" and having guests see and accept it during booking is the best way to cut disputes.
This is general information, not legal advice for your specific case. Situations differ; for significant disputes or reviewing standard-form contracts, consult a qualified lawyer or your local consumer-protection authority.
Legal basis (Taiwan)
The provisions most relevant to restaurant deposits / earnest money are below; actual application depends on the specific case. Refer to the official Laws & Regulations Database for the current text.
- Civil Code Art. 248: where one party receives earnest money from the other, the contract is presumed formed.
- Civil Code Art. 249 (effect of earnest money): on performance it is returned or credited to the payment; if non-performance is attributable to the payer, the earnest money cannot be reclaimed; if attributable to the recipient, it must be returned at double; if attributable to neither party, it is returned.
- Civil Code Art. 252: an excessive agreed penalty may be reduced by the court to a reasonable amount (an over-high forfeit can be cut down).
- Consumer Protection Act Art. 11: standard-form terms must follow the principle of reciprocal equality; ambiguous terms are construed in favor of the consumer.
- Consumer Protection Act Art. 12: standard-form terms that violate good faith and are manifestly unfair to consumers are void.
Note: the "Consumers' Foundation" (中華民國消費者文教基金會) is a private consumer-advocacy NGO; its views are informative but not law itself — the binding authority is the Civil Code and Consumer Protection Act above.
How much deposit should you charge?
- Walk-in tables: none, or a small token (NT$300–500 per head).
- Large tables / private rooms / holiday peaks / collab events: no-show losses are big, so charge more (e.g. NT$1,000–2,000 per head, or 30–50% of the expected check).
- Rule of thumb: high enough that a no-show actually hurts, low enough not to scare off normal guests. Use the no-show loss calculator to size your monthly loss, then back out the amount.
How to collect deposits online and cut no-shows automatically
Collecting deposits by hand (bank transfers, manual reconciliation, tracking refunds yourself) is error-prone and slow. A reservation system that collects deposits online does three things:
- Pay-to-bind: the guest pays the deposit during online booking; the reservation only counts once paid, filtering out casual bookings.
- Policy up front: refundability and forfeit terms show before payment and the guest taps to accept — exactly the "disclose in advance" that consumer law wants.
- Automatic reminders: SMS + Email the day before and day of, further reducing forgotten bookings.
Eatsy is usage-based: from NT$3 per booking, plus NT$5 per booking if you collect a deposit, with no monthly fee and no lock-in and a 7-day no-card trial. No bookings, no charge — ideal for small/independent restaurants with big seasonal swings. Across 100+ restaurants in Taiwan, Eatsy is built to cut no-shows and lift arrival rates; actual results vary by restaurant. Guests book via a web form (no app); reminders go by SMS + Email.
Want to see how it compares to other systems? Read Taiwan reservation systems 2026: 6 compared and inline alternative: Eatsy.
Copy-paste deposit policy template
Swap in your restaurant name and hours, then post it on your booking page, the back of the menu, or your IG pinned post:
[○○ Restaurant — Reservation & Deposit Policy]
1. Large tables / private rooms / holiday periods require a deposit of NT$○○○ per head, fully credited toward your bill on arrival.
2. To cancel, contact us at least ○○ hours before your seating for a full refund; no cancellation within the window or a no-show means the deposit is non-refundable, as compensation for holding the seats.
3. If the restaurant cannot serve for any reason, the deposit is refunded at double or rebooked.
4. Completing the deposit payment constitutes acceptance of these terms.
(Template is for general reference; adjust to your operations and local law.)
Frequently Asked Questions
▸Can a restaurant keep your deposit?
It depends on the policy posted in advance. Typically: credited to the bill on arrival; full or partial refund if cancelled before the cutoff; for a no-show that was clearly disclosed beforehand, it is usually non-refundable per the agreement. The key is disclosing refundability and forfeit terms before payment and getting the guest's consent.
▸Is it legal for a restaurant to charge a deposit?
Yes. But under consumer-protection principles, the amount, refundability and forfeit conditions must be disclosed prominently before the guest pays, and must not be manifestly unfair. Forfeiting the full amount without notice invites disputes; the forfeited sum should match actual loss. (Legal basis: Civil Code Arts. 248–249 on earnest money, and Consumer Protection Act Arts. 11–12 on standard-form contracts.)
▸What's the difference between a deposit and earnest money?
"Earnest money" is a civil-code term: the contract forms on payment; if the payer breaches they generally cannot reclaim it, and if the recipient breaches it must be returned at double. "Deposit" is the everyday word, often treated as earnest money or prepayment, governed by prior agreement. The forfeit-on-no-show effect comes from clear advance terms, not the label.
▸If a guest no-shows, can the deposit be forfeited?
If you disclosed in advance, prominently, that no-shows are non-refundable and the guest consented, it can usually be forfeited as compensation. But the amount must be reasonable and proportionate to the loss; a no-notice or excessive forfeit clause can be reduced or held invalid.
▸What is the consumer-protection stance on restaurant deposits?
The emphasis is transparency and fairness: restaurants must disclose deposit terms prominently and in advance, standard-form contracts must not be manifestly unfair to consumers, and penalties must not be excessive. The safest approach is a clear deposit/cancellation policy shown and accepted during booking.
▸How much deposit should a restaurant charge?
Walk-ins: none or a small token (NT$300–500 per head). Large tables, private rooms and holiday peaks: charge more (NT$1,000–2,000 per head or 30–50% of the check). Aim high enough that a no-show hurts but low enough not to deter normal guests. Use a no-show loss calculator to back out a reasonable amount.
▸How do you write a restaurant deposit policy?
Cover at least four points: (1) who pays, the amount, and that it credits the bill; (2) the cancellation cutoff and refund rule; (3) how no-shows are handled; (4) double refund or rebooking if the restaurant cannot serve, plus a note that paying constitutes acceptance. This article includes a copy-paste template.
▸What's the most reliable way to collect deposits online?
Use a reservation system: the guest pays online to confirm the booking, the policy is shown and accepted before payment, then SMS/Email reminders go out automatically. Eatsy is usage-based — from NT$3 per booking plus NT$5 per booking for deposits, no monthly fee, no lock-in, 7-day no-card trial — built to help cut no-shows (actual results vary by restaurant).