Deposits

What are your rights when paying a deposit for goods or services?

When you pay a deposit, you are paying a percentage of the total price to show you intend to buy a product or service. Paying a deposit means you and the business are making a contract. You both agree to:

• The exact product or service you are buying
• The deposit amount 
• When the balance must be paid
• The date the product or service will be provided

If you buy online or at your doorstep, the business must provide the terms and conditions for deposits. In a shop, always ask for the deposit conditions before paying.

What can you do when paying a deposit to protect yourself in case something goes wrong?

To protect yourself , try to pay large deposits using a debit or credit card. This may allow you to request a chargeback from your bank or card provider if something goes wrong. Other ways to protect yourself are to confirm the following with the business:

• Delivery or completion date
• Whether the deposit is refundable in any situation 
• Any non-refundable amount or cancellation charge

Get confirmation of these details in writing or by email, and always get a receipt for your deposit.

How does chargeback work if you paid your deposit by card?

If you paid your deposit by debit or credit card and the business does not deliver, you can ask your card provider to do a chargeback to reverse the transaction on your card. Contact your bank or credit card provider immediately and provide details of the disputed transaction. Each card issuer has specific timeframes for requesting a chargeback.

When can you ask for a refund of your deposit?

If the business cannot do what it agreed to under consumer law, you can ask for your deposit back. For example, if the business:

• Cannot supply the item or service you agreed to buy
• Does not deliver the product on the agreed date and cannot agree a new delivery date with you
• Does not deliver the product on the agreed date and fails to deliver on the new delivery date

If the business refuses to return your deposit, you can take legal action. For claims under €2,000, you can use the small claims procedure.

Can you get your deposit back if you change your mind about buying the product or service?

Generally, a business does not have to refund your deposit if you change your mind. However, some terms and conditions may allow cancellations and refunds. Always read the terms and conditions or ask the business to see if a refund is possible before you pay the deposit 

How do you use the small claims procedure to get your deposit back?

If you cannot get a chargeback and your claim is less than €2,000, you can apply through the District Court to use the small claims procedure. You will need details of your purchase and the business. The process is designed to be simple and does not generally require a solicitor.

What happens if the business goes out of business after you pay a deposit?

If you pay a deposit and the shop goes out into liquidation, receivership or examinership, it may be difficult to get your item or your deposit back. As a customer, you become an unsecured creditor, meaning that you are owed money but are a lower priority than other creditors such as employees, Revenue and banks. You can find more information in our section on your rights when a company goes out of business.

Next steps to resolve your consumer rights issue

• Contact the business informally first, explain the problem and try to work it out.
• Keep a record of all contact and communications in case you need to escalate your complaint later.
• If the problem is not resolved, make a formal written complaint to the business. You can use the CCPC complaint letter templates which outline your consumer rights to help you.
• If you paid by card, you may have the option to request a chargeback from your bank or financial services provider.
• If your claim is for €2,000 or less, you can use the small claims procedure.
• If the problem is not easily resolved, we encourage you to also report the business to the CCPC. Your report will inform our advocacy and enforcement activities.
• For more guidance, please visit our how to resolve an issue section.