Card Deposits for Restaurants: What Does the Law Say?

No-shows cost restaurants between 5% and 20% of their annual revenue. In response, more and more establishments are asking for a card imprint or deposit at the time of booking. But is it legal? And under what conditions?

The answer depends entirely on the country where your restaurant is located. Here is a full country-by-country overview so you know exactly where you stand.

Note: this article is for informational purposes only. For any legal decision, consult a legal professional in your country.

🇺🇸 United States (USA) — ✅ Legal — under conditions

Requiring a card imprint or deposit at reservation is legal in the vast majority of US states. There is no federal law specifically prohibiting this practice in the restaurant industry.

What is required:

• Your deposit or no-show fee policy must be clearly communicated to the guest BEFORE they confirm their reservation.
• The amount charged in case of no-show must be reasonable and proportionate to the loss suffered.
• Some states have specific rules — California in particular regulates "junk fees" (Junk Fee Prevention Act).

In practice:

Major players like OpenTable and SevenRooms offer integrated deposit tools, which shows the practice is common and accepted. The average no-show fee in the US is $52 per person (SevenRooms, 2024).

⚠️ Warning: if the guest disputes the charge with their bank (chargeback), the transparency of your policy at the time of booking is your only protection.

🇬🇧 United Kingdom (UK) — ✅ Legal — governed by contract law

In the UK, a restaurant reservation is a legally binding contract between the guest and the venue. Not showing up is a breach of that contract.

What is required:

• Cancellation policy and no-show fees must be clearly stated at the time of booking — on the website, in the confirmation email, or verbally by phone.
• A non-refundable deposit must represent a "reasonable estimate of loss" suffered by the restaurant — not an excessive penalty.
• Terms must be explicitly accepted by the guest before payment.

Consumer Rights Act 2015:

This law protects consumers against unfair terms. A disproportionate deposit (e.g. 100% of the meal for a standard reservation) could be challenged in court.

In practice:

Card imprint requests are increasingly common in the UK, even for tables of two. Typical amounts range from £10 to £25 per person for casual restaurants, and up to £50–100 per person for fine dining.

🇫🇷 France — ✅ Legal — with mandatory prior information

In France, requiring a card imprint at reservation is perfectly legal. The practice is governed by the Consumer Code.

What is required:

• A clear information message must be displayed to the guest BEFORE they confirm their reservation, stating cancellation conditions and amounts that may be charged.
• The guest must explicitly accept these conditions.
• The amount charged in case of no-show must correspond to real compensation, not a penalty.

GDPR and card data:

Card data stored for reservation purposes is subject to the GDPR. It must be secured, used only for the stated purpose, and deleted after use.

In practice:

The practice is still less common in France than in the UK but is growing quickly — especially in Parisian fine dining. Platforms like Zenchef and TheFork now offer this feature natively.

💡 Cultural note: French guests have historically been less used to card imprints for restaurants. Clear, transparent communication about the "why" is especially important in this market.

🇦🇪 United Arab Emirates (UAE / Dubai) — ✅ Legal — common in fine dining

In the UAE, requiring a deposit or card imprint at reservation is legal and practised by many premium restaurants.

Legal framework:

Federal Law No. 15 of 2020 on Consumer Protection requires that contractual terms be clearly communicated. Any charge must correspond to a defined service or compensation agreed in advance.

What is required:

• Cancellation conditions and no-show fees must be clearly communicated to the guest at the time of reservation.
• Card data is subject to Federal Decree Law No. 45 of 2021 on Personal Data Protection — it must be secured and used only for the declared purpose.
• Any abusive or non-compliant charge can be reported to the CCCP (Commercial Compliance and Consumer Protection).

In practice:

The Dubai market is mature on this topic. Fine-dining restaurants and luxury hotels routinely require a card imprint or prepayment. International clientele is used to this practice.

💡 Market note: the cost of phone calls in the UAE is higher than in Europe (around €0.33 per call vs €0.13 in the UK). Alternative solutions to card deposits therefore have a slightly higher operational cost in this market.

Quick recap

• 🇺🇸 USA — Legal in the vast majority of states. Transparency required.
• 🇬🇧 UK — Legal. Governed by contract law and the Consumer Rights Act 2015.
• 🇫🇷 France — Legal. Prior information mandatory. GDPR applies.
• 🇦🇪 UAE — Legal. Widespread in fine dining. Federal consumer protection law applies.

The problem nobody talks about

Card deposits are legal. But they have a hidden cost that most restaurateurs underestimate: they reduce reservation volume by 20 to 30%.

Guests drop out at the moment they have to enter their card. Not because they were going to no-show — but because the psychological friction is too high. Result: you protect your dining room from no-shows, but you fill it less.

That's the dilemma Luigi solves. No card deposit. No friction at booking. Luigi calls every guest the day before to confirm they're coming — and gets the same level of psychological commitment as a deposit, with zero friction.

Calculate what your no-shows really cost you

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Article by the Luigi team • March 2026

This article is for informational purposes only. It does not constitute legal advice.