Prepayment means collecting full or partial payment before the service is delivered -- at the time of booking rather than at the time of service. For service businesses with appointment-based revenue, prepayment is one of the most impactful operational decisions available.
What is prepayment in a service business context?
Prepayment is collecting payment from a customer when they book, before the service is provided. It can mean full payment upfront, or a deposit (typically 25--50% of the service price). Prepayment confirms the booking with a financial commitment and eliminates the most common cause of no-shows: cost-free cancellation.
Is prepayment legal and expected in Nordic markets?
Yes. Prepayment and deposit collection are standard practice in many Nordic service sectors including beauty, health, fitness, rentals, and hospitality. As long as the refund and cancellation terms are clearly stated at booking time, requiring prepayment is both legally acceptable and increasingly expected by customers who book services online.
How does WayPAY collect prepayment?
WayPAY can process card prepayment through Stripe when payment service is active. Payout timing and provider fees depend on the business's Stripe agreement and account configuration.