A deposit exists to protect the seller from spending money on a customer who then disappears. That is a legitimate need. The risk to you is that it also protects a seller who never delivers anything — and this is where most prepayment losses occur, because the amount is usually above the threshold where people feel comfortable walking away.
Payment methods, ranked by what you get back
| Method | Dispute route if things go wrong | Realistic recovery | Use for |
|---|---|---|---|
| Credit card | Card network dispute process; in some countries, additional statutory protection for credit purchases above a threshold | Good, within the network's time limits — subject to the merchant disputing it | Most purchases from unfamiliar sellers |
| Reputable escrow service | Funds released only when you confirm delivery; the provider mediates disputes | Good, if you stay inside the platform and follow its process exactly | Larger transactions between parties who do not know each other |
| Platform payment with buyer protection | Provider adjudicates a claim under its published policy | Moderate to good, and much worse if you pay outside the platform | Marketplace purchases, where the policy covers your situation |
| Debit card | Often the same dispute process as credit, though statutory protections may differ | Moderate — the money leaves your account immediately | Smaller amounts |
| Bank transfer to a company account | Recall attempt only; no formal dispute right in most cases | Poor, and slow | Established suppliers you already buy from |
| Bank transfer to an individual | Effectively none, and it may be a deliberately different jurisdiction | Very poor | Nothing |
Two practical rules follow. First, if a seller offers a discount for paying by bank transfer instead of card, understand that you are being paid a small amount to give up your only dispute route — and price that into the decision. Second, if the beneficiary name on the payment instruction does not match the company you are contracting with, stop and ask. The answer is sometimes mundane; the absence of a coherent answer is not.
What to put in writing before you pay
You do not need a lawyer to write a deposit agreement. You need one page that both parties agree to, containing nine things:
- Legal names and addresses of both parties — not trading names.
- A precise description of what is being supplied. Dimensions, materials, colour, quantity, model number, specification.
- Total price, deposit amount and currency, with who pays any transfer fees.
- The delivery date or window, and the place where delivery happens.
- When the balance falls due — on completion, on delivery, or against inspection.
- Refund conditions. Is the deposit refundable if the seller fails to deliver? Is it refundable if you change your mind? Say so explicitly.
- What happens if delivery is late, and how late is too late.
- What happens if the goods do not match the specification, and who decides that.
- Signature and date from both parties.
If a seller will not sign a one-page document containing those nine points, that refusal is the most useful piece of information you will receive before paying. It is far cheaper than discovering the same thing after the money has left.
If the seller stops replying: a realistic sequence
Do these in parallel where possible, and start early. Time is the one resource that works against you in every recovery route.
| Day | Action | Why it matters |
|---|---|---|
| 0 | Send one written message asking for a specific update and a date | Creates the record that you tried, in writing, before escalating |
| 2–3 | Try every published contact route: phone, company email, social accounts, the address on the invoice | Shows whether the business has stopped trading or is merely ignoring you |
| 3–5 | Open the dispute route: platform claim, escrow dispute, or card issuer | Dispute windows are limited, and merchant responses take time |
| 5–10 | If you paid by bank transfer, ask your bank to attempt a recall, in writing | Recall is most likely while the funds are still traceable |
| 7–14 | Report to your country's fraud or consumer authority, and to the police if it is clearly criminal | Needed for some insurance claims and for any later legal step |
| 14+ | Assess whether the amount justifies legal action, and whether the seller's jurisdiction makes that practical | Cross-border enforcement is expensive; be honest about the maths |
Be honest with yourself about the arithmetic at the start: for small amounts, the recovery cost in time usually exceeds the loss. That is not a reason to skip the reporting — patterns are how authorities build cases — but it is a reason to decide your maximum deposit size before you are emotionally committed to an order.
Frequently asked questions
Is paying a deposit normal?
Yes, routinely. Deposits are standard for made-to-order goods, custom work, event services and large orders where the seller has to buy materials or hold capacity. What is not normal is a deposit request with no written terms, no scheduled delivery date, no refund conditions, and a demand to pay by bank transfer to an individual.
How much deposit should I pay?
Enough to make the order real, not enough to hurt if it goes wrong. For a first order with an unfamiliar seller, 20–30% is a common range, with the balance against delivery or against inspection. If the seller insists on 100% in advance for something unproven, treat the insistence itself as information.
Can I get my money back if I pay by bank transfer and the seller disappears?
Sometimes, but rarely and slowly. Banks can attempt a recall if the funds have not yet been credited, and the outcome depends on the receiving bank's cooperation and local rules. Realistically, treat a bank transfer to an individual as unrecoverable and decide whether you can afford that outcome before you send it.
What should a deposit agreement include?
The legal names of both parties and their addresses, a precise description of what is being delivered, the total price and the deposit amount, the delivery date or window, the conditions under which the deposit is refundable and non-refundable, what happens if delivery is late, and the currency. One page is enough — what matters is that both parties have the same page.