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.
Full amount or deposit?
A deposit usually meets the least resistance and is enough to make a cancellation matter. Full prepayment makes sense when the service has a fixed price and a long duration, or when materials are bought in for the individual customer. If in doubt, start with a deposit -- it is easier to raise later than to walk back.
How does WayPAY collect prepayment?
When payment service is active, prepayment is taken through the business's connected Stripe account, and the checkout presents card and MobilePay. WayPAY charges 5% of successful platform payments. Payout timing and provider fees depend on the business's own Stripe agreement and account configuration.