Course Deposits and Instalments: How to Set Them Up and What Your Policy Should Say
How a training provider sets course deposits and payment plans: how much to take, when the balance is due, the rules on credit and what terms must say.
On this page
A deposit holds a place and covers what you commit to before the course runs. Instalments spread the price for a learner who cannot pay it in one go. Size the deposit from the costs you cannot get back if someone cancels, set the balance date early enough to resell the place, keep instalments free of interest and fees, and write terms that say what happens to the money in each case: the learner cancels, you cancel, or a payment is missed. Both options exist to turn an interested person into a booked one sooner, and both create money you hold before the course has been delivered. The decisions below are about getting that balance right for the learner and for your cash flow.
Key takeaways
- Separate the two kinds of upfront money. A small reservation deposit can often be kept if the learner cancels; a larger advance payment should only be kept to the extent of what you lose.
- Set the balance date from your own deadlines: when you can still fill the place, and when the venue, exam body or trainer costs become fixed.
- In the UK, interest-free instalments with no fees, repaid in up to twelve payments within twelve months, generally fall under an exemption from consumer credit authorisation. Add an admin fee and they may not.
- In the US, Regulation Z treats someone who regularly offers consumer credit payable in more than four instalments as a creditor, even with no finance charge.
- Write the payment terms into the booking itself: the deposit, the balance date, the instalment dates, what happens if a payment is missed, and the refund in each kind of cancellation.
Four ways to split a payment
A provider has four ways to let someone book now and pay later. They differ in when the money arrives and who carries the risk if it does not.
| Method | When you are paid | Who carries the risk of non-payment | Work for you | Typical fit |
|---|---|---|---|---|
| Deposit, then balance | Part at booking, the rest before the course | You, until the balance is paid | Collect the balance, release the place if it is not paid | Open courses with costs committed in advance |
| Your own instalments | One payment a month | You, for every payment still due | Collect each payment, follow up any that are missed | Higher-priced courses and qualifications for individuals |
| Buy now, pay later (Klarna, PayPal Pay in 3) | In full, at booking, from the provider of the credit | The credit provider | Little, beyond a higher payment fee | Learners who want to spread a smaller amount |
| Invoice on payment terms | When the invoice is paid, often 30 days | You | Raise and chase the invoice | Employers booking their staff |
The first two are yours to design. The third is someone else’s product that you offer at checkout. The fourth is how employers often pay, and How to Sell Training to Corporate L&D Buyers covers purchase orders and invoices in detail. The sections that follow are mostly about the first two.
What a deposit is for
A deposit does two jobs. It turns a maybe into a booking: someone who has paid is more likely to turn up, which is why deposits sit alongside reminders in How to Reduce No-Shows. And it covers what you commit before the date: the venue, printed materials, exam or awarding body registration, and the trainer’s day.
The UK Competition and Markets Authority draws a distinction that is useful in any country. Its guidance for businesses says “you may legitimately keep a deposit in full if it’s no more than a small percentage of the price”, and that “any prepayments or deposits you keep must take into account what your business will actually lose” when a customer cancels. In its 2016 letter to wedding venues it described a fair deposit as one that acts as a reservation fee, as opposed to an advance payment that covers more than the business’s costs.
So there are two kinds of money taken upfront. A reservation deposit is small and holds the place. An advance payment is larger and is part of the price paid early. The terms can treat them differently: the first can usually be kept on cancellation, the second should be refunded less what the cancellation costs you.
How big a deposit should be
Start from the costs you cannot recover if a learner cancels late, add a margin for the place you may not resell, and check the result against what learners will accept. Published terms from providers show the range.
| Provider | What they take upfront | Source |
|---|---|---|
| Quarterdeck (UK training and leadership programmes) | A 20% deposit to reserve a place, balance before the course | Published terms |
| RRC (UK health and safety qualifications) | Interest-free plans of 2, 3 or 4 payments, the first being 50%, 34% or 25% | Payment plans page |
| A US university’s community and professional education office (Kennesaw State) | 25% of the course fee plus an $80 enrolment fee, then three instalments | Payment plans page |
| Australian registered training organisations | Prepaid fees above A$1,500 for the same course need fee protection, such as a bank guarantee or a tuition assurance scheme | Compliance Requirements Instrument 2025, section 18 |
The Australian rule is worth knowing even outside vocational training. For nationally recognised training, an RTO that takes more than A$1,500 in prepaid fees for one learner on one course must protect the excess with an unconditional bank guarantee, membership of a tuition assurance scheme or another measure the regulator approves. Some RTOs, such as Australian Operator Training, collect fees in stages as the training is delivered instead, which is an instalment plan by another name.
When the balance is due
The balance date is the point after which the place is paid for or released. Set it from your own deadlines rather than a round number.
- When can you still fill a released place? If a waitlist or late bookings usually fill the last places in the final fortnight, a balance due 14 days before the course gives you time to offer the place to someone else.
- When do your costs become fixed? Venue final numbers, exam entries and catering each have their own cut-off. The balance should fall before the earliest of them.
- How long before the course does the learner book? A balance date that falls before the booking date is no use, so short-notice bookings should pay in full.
A balance due a set number of days before the course suits dated courses. A balance due a set number of days after booking suits courses with flexible start dates or on-demand access.
Employer bookings
An employer buying places for its staff will often ask for an invoice with a purchase order number and payment terms, because that is how its finance team pays. A private course is different: you commit a trainer’s days, and sometimes a venue, for one client. A deposit at confirmation or an invoice in two stages protects those days in the same way a deposit protects a public place.
When instalments make sense
Instalments suit a learner paying from their own pocket for a course priced at more than they would spend in one go: a professional qualification, a multi-day certificate, a career-change programme. They are less useful for low-priced courses, where the payment fee on each instalment is a larger share of the price and the admin of collecting it costs more than it saves the learner.
Decide five things before you offer them.
| Decision | The question | What published plans do |
|---|---|---|
| Number of payments | How long can you wait for the full price? | RRC’s standard plan is 2 to 4 payments; Kennesaw State’s is a deposit plus three |
| Timing against the course | Should the plan finish before the course, the exam or the certificate? | RRC requires the final payment at least 30 days before a NEBOSH exam |
| Access while paying | What does the learner get while payments are still due? | RRC suspends course access when a payment is missed; Australian Operator Training issues certification once the agreed fees are paid, or a compliant payment plan is in place |
| Minimums | Is there a course price or payment size below which it is not worth it? | RRC: courses over £100, payments of at least £50 |
| Who can use it | Individuals only, or companies too? | RRC’s plans are for individuals; businesses cannot use them |
The rules on credit
An instalment plan is credit: the learner gets the course before paying for all of it. Whether that credit is regulated depends on the country and on how the plan is set up. What follows describes the rules rather than giving legal advice, and a plan of any size is worth checking with an adviser.
In the UK, article 60F(2) of the Regulated Activities Order exempts a credit agreement where the supplier is also the lender, the amount is fixed, the borrower makes no more than twelve payments within twelve months, and the credit carries no interest or other charges. A provider’s own interest-free plan of up to twelve monthly payments with no fee generally fits that description. An admin fee for paying in instalments can take it outside. The rules that brought buy now, pay later lenders into regulation from 15 July 2026 apply to third-party lenders, and merchants that offer their own plans can still rely on the 60F(2) exemption.
In the US, Regulation Z, which implements the Truth in Lending Act, defines a creditor as a person who regularly extends consumer credit “that is subject to a finance charge or is payable by written agreement in more than four installments”, excluding any down payment. A provider that regularly offers plans of five or more payments may therefore have disclosure duties even without charging interest. Plans of a down payment plus up to four instalments, with no finance charge, stay outside that definition.
In Australia, the National Credit Code applies to credit for personal purposes where a charge is or may be made for providing it, so an interest-free plan with no fees generally sits outside the Code. For RTOs, the A$1,500 prepaid fee threshold above still applies to what you collect in advance.
What instalments cost you
Each instalment is a separate payment, so a fixed per-payment fee is charged each time. The percentage part stays the same overall. The arithmetic below uses Stripe’s published standard prices, checked 21 October 2026; your own rates may differ.
| Example (illustrative) | Paid in one go | Paid in instalments | Through Klarna |
|---|---|---|---|
| UK, £1,200 course, standard UK card (1.5% + 20p) | £18.20 | Six payments of £200: £19.20 | From 4.99% + 35p: £60.23 |
| US, $1,500 course, domestic card (2.9% + 30¢) | $43.80 | Four payments of $375: $44.70 | 5.99% + 30¢: $90.15 |
Your own plan costs a little more in fees than a single payment and much less than buy now, pay later. The difference is risk: with Klarna you are paid in full at booking and the credit provider collects the rest, while with your own plan you are paid as each instalment arrives and you follow up any that are missed.
Your own instalments or buy now, pay later
Some providers offer both. Astutis, a UK health and safety training provider, added Klarna in July 2025 so learners could pay in 30 days or in three monthly instalments, interest-free, on courses including the NEBOSH National General Certificate and IOSH Managing Safely. RRC runs its own interest-free plans, of two to four payments on its standard plan.
Which way to let a learner spread the cost
You are paid in full at booking, and the credit provider decides who qualifies and collects the payments.
Lower fees and your own terms, in exchange for collecting each payment and following up any that are missed.
The deposit covers what you commit to; the balance date gives you time to resell the place.
For a private date, a deposit at confirmation or an invoice in two stages protects the trainer's days.
What your terms should say
Write down what happens to the money in each case before it happens. The wording below is an illustration to adapt to your courses and your country.
| Case | What to decide | Example wording (illustrative) |
|---|---|---|
| The deposit | The amount, what it covers, whether it is refundable | ”A deposit of 20% secures your place. It covers the costs we commit to when you book.” |
| The balance | When it is due, and what happens if it is not paid | ”The balance is due 14 days before the course. If it is unpaid 7 days before the course, we may offer your place to someone else and treat the booking as cancelled by you.” |
| Instalments | The dates, the amounts, and what happens if one is missed | ”Your plan is four equal monthly payments, the first today. If a payment is missed, we will contact you to agree a date. Access to the online part of the course may pause until the plan is up to date.” |
| The learner cancels | The refund at each stage, based on what you lose | ”If you cancel more than 28 days before the course, we refund everything except the deposit. Between 28 and 14 days, we refund 50% of the course fee. Within 14 days, the fee is not refundable, but you can transfer to another date or send a colleague.” |
| Transfers and substitutes | Whether a learner can move date or name someone else, and any fee | ”You can move to another date once at no charge up to 14 days before the course, or send a colleague in your place at any time.” |
| You cancel or change the course | A full refund, including any deposit | ”If we cancel or move the course, you can choose a full refund, including your deposit, or a place on another date.” |
| The online booking cooling-off period | Where it applies, and how starting early is handled | ”If you book online, you can cancel within 14 days of booking for a full refund. If you ask to start within that period, we will charge for the part already provided.” |
Keep the terms fair
In the UK, the CMA’s guidance treats terms that “make prepayments non-refundable, regardless of why the customer cancels” as likely to be unfair, and the same goes for keeping prepayments when the customer is not at fault or the contract does not go ahead. A sliding scale stands up better when it is a genuine estimate of the loss at each stage and gives the customer certainty. Reselling the place reduces your loss, and the CMA expects a business to take that into account. Unfair terms are not binding on consumers.
In Australia, since 9 November 2023 businesses can be penalised for proposing, using or relying on unfair terms in standard form contracts with consumers and small businesses. A deposit or cancellation clause applied to every booking is part of a standard form contract.
Business-to-business bookings sit under different rules in most countries, and the terms can be negotiated. One set of terms with an employer section for purchase orders, invoices and substitutes keeps both in one place.
The cooling-off period on online bookings
In the UK, the Consumer Contracts Regulations give a consumer who books a service online or by phone 14 days to cancel, starting the day after the contract is made. If the consumer asks for the service to start within that period and then cancels, they pay for what has been provided. If the service is fully provided within the period, at the consumer’s request and with their acknowledgement that the right is lost, they cannot cancel. Refunds are due within 14 days of the cancellation. If you do not tell the consumer about the right, the period is extended, by up to 12 months.
The Regulations exempt leisure services provided on a specific date, with examples such as theatre tickets and restaurant bookings. Training does not appear among Business Companion’s examples, so a provider selling vocational courses online should plan on the cancellation right applying. The EU has the same 14-day right of withdrawal for services bought online.
The 14-day right interacts with the balance date. A learner who books a course six weeks ahead and pays a deposit can cancel in the first 14 days and is due the deposit back. For a learner who books three days before the course, the booking should include their request to start within the 14 days. If they then cancel part-way through, they pay for what has been delivered.
Collecting without chasing
The work in a deposit or instalment plan is the follow-up. A schedule of messages that goes out on its own does most of it, and leaves you to deal only with the exceptions.
- 1At booking
Confirm the amount paid, what is still due, each due date and how to pay, in one message the learner can keep.
- 2Seven days before a payment
A reminder with the amount and the date, so the learner can make sure the money is there.
- 3On the due date
The payment link, so paying takes one click.
- 4The day after a missed payment
An overdue notice to the learner and to your team, with a way to pay what is due.
- 5Within a few days
A personal message: ask what happened and agree a catch-up date.
- 6At the point your terms set
Apply what the terms say: pause access, release the place or treat the booking as cancelled.
Keep the record in one place. One invoice for the full price, with each payment recorded against it, shows what has been paid and what is due, and keeps your accounting system matched to the booking. Separate invoices for the deposit and the balance add paperwork and make refunds harder to work out.
Where Cademy fits
The decisions above end up in two places: your terms, and your checkout. Cademy handles the checkout and the follow-up, so the deposit, the balance date and the monthly payments you decide are offered at booking and collected on schedule. Both are on the Teams plan and above.
Set once, per course if needed
A deposit rate from 1% to 95%, or 2 to 12 monthly payments, as an account default with a different rate or count on any course.
Chosen at checkout
The learner picks how to pay and sees what is due today, what is due later and when.
Collected on schedule
Reminders seven days before each payment and on the day, with a link to pay.
Deposits and the balance
You turn on deposits for the account with a default rate and a balance rule, either a number of days before the course starts or a number of days after the order is placed. Each course can use the account default, its own rate, or full payment only, and an optional message at checkout explains your terms in your own words. The deposit is worked out on the total after discounts.
At checkout the learner chooses between paying in full and paying the deposit, by card, Apple Pay, Google Pay or PayPal. They pay the balance from their confirmation page, the confirmation email or their order page, at any time, including early. A “Balance due soon” reminder goes seven days before the due date and a “Balance due today” reminder on the day, and an unpaid balance then follows your overdue process. A paid deposit meets the payment requirement for the online part of a course, so a blended course can start while the balance is still to come.
Monthly payments
Instalments work the same way: an account default of 2 to 12 monthly payments, with a different number on any course. At checkout the learner sees the amount due today, the monthly amount and the final payment date, and pays the first instalment. Later payments fall on the same day each month from the booking, and each one has its own payment link that opens without logging in. The learner gets a reminder seven days before each payment and the link on the day. If a payment is missed, the order is marked overdue, the learner and your team are emailed, and one link collects everything that is due, so the plan picks up where it left off.
Customers pay no interest and no extra Cademy fee for paying monthly, and the Teams plan has no platform fee, so the payment provider’s own charge on each payment is the only cost. For a learner who needs a different arrangement, you can create the order yourself with its own number of payments and send the first payment request. If you also want to offer buy now, pay later, the Klarna app adds it as a way to pay in full.
One invoice per booking
Each booking has one invoice for the full amount, with the deposit, the balance and every instalment recorded as payments against it. The order shows each payment as paid, due, overdue or scheduled, and with Xero connected the same payments are recorded against the same invoice there. When a payment plan changes, money already collected stays recorded, a reduction comes off what is still due, and credit notes handle refunds.
To see deposits and monthly payments on your own courses, book a call and bring your current booking terms, or start for free and look at the payment settings. Course booking system shows the rest of the checkout.
Frequently asked questions
Can a training provider take a non-refundable deposit? Yes, within limits. In the UK, the CMA’s guidance says a business may keep a deposit in full if it is no more than a small percentage of the price, and that anything kept beyond that must reflect what the business loses. A large prepayment that is non-refundable whatever the reason is likely to be unfair. If you cancel the course, the deposit should be refunded.
How much should a deposit for a training course be? Enough to cover the costs you cannot recover if the learner cancels late, such as venue, materials and exam registration, and small enough that learners will pay it. Published examples include 20% to reserve a place and plans whose first payment is 25% to 50% of the price.
When should the balance be due? Before your own costs become fixed, such as venue numbers and exam entries, and while you can still fill a released place. Bookings made after the balance date should pay in full.
Do I need to be authorised to offer instalments in the UK? Usually not, if the plan is your own, the amount is fixed, there are no more than twelve payments within twelve months, and there is no interest or fee. That is the exemption in article 60F(2) of the Regulated Activities Order. A fee for paying in instalments can take a plan outside it, so check with an adviser before adding one.
Are instalment plans regulated in the US? Under Regulation Z, someone who regularly offers consumer credit payable in more than four instalments, not counting a down payment, is a creditor even without a finance charge, which brings Truth in Lending disclosure duties. A down payment plus up to four instalments with no finance charge stays outside that definition, and state rules can add their own requirements.
What is the difference between offering instalments and offering Klarna? With your own instalments you are paid as each payment arrives and you follow up any that are missed. With Klarna or PayPal Pay in 3 you are paid in full at booking, and the credit provider approves the learner and collects the payments. Buy now, pay later costs more per booking: Stripe lists Klarna from 4.99% + 35p in the UK and 5.99% + 30¢ in the US.
Do learners have a 14-day cooling-off period on course bookings? In the UK and the EU, a consumer who books a service online or by phone generally has 14 days to cancel. If they ask for the course to start within that period, they pay for what has been provided. A leisure exemption covers services on a specific date, such as theatre tickets, and training is not among the examples given in official guidance.
What should happen if a learner misses an instalment? Whatever your terms say, applied consistently. A reminder before each payment and a personal message after a missed one resolve most cases. Your terms can say that access to online content pauses, or that the place is released, if the plan is not brought up to date by a set date.
Can an Australian RTO take full payment upfront? For nationally recognised training, an RTO that collects more than A$1,500 in prepaid fees from one learner for the same course must protect the amount above the threshold, with a bank guarantee, a tuition assurance scheme or another measure the regulator approves. Many RTOs collect fees in stages instead.
Sources
Quotations, prices and terms checked 21 October 2026 on the publishers’ own pages.
- Competition and Markets Authority, Writing a fair contract for customers (GOV.UK)
- Competition and Markets Authority, Cancellation advisory letter to wedding venues (March 2016)
- Business Companion, Consumer contracts: distance sales
- Your Europe, Guarantees and returns
- The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, article 60F
- Lewis Silkin, BNPL: the Regulated Activities (Amendment) Order 2025 (July 2025)
- Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026.2 Definitions
- Legal Services Commission of South Australia, Law Handbook: the National Credit Code
- National Vocational Education and Training Regulator (Compliance Requirements) Instrument 2025, section 18
- ACCC, Businesses urged to remove unfair contract terms ahead of law changes (September 2023)
- Quarterdeck, Terms
- RRC, Payment plans
- Kennesaw State University, Community and Professional Education: payment plans
- Australian Operator Training, Fees, payments and refunds policy
- Astutis, Klarna integration (July 2025)
- Stripe, Pricing (UK)
- Stripe, Pricing (US)