Quick answer
The legal consequences differ. A true deposit is security with statutory rules, so on breach it may be forfeited or doubled. The similar booking payment is usually an advance, with refund conditions set by contract. An advance payment is prepaid consideration, with unperformed portions settled back as agreed. Check exact wording, proportion, refund conditions and deductions, put verbal 'refundable' claims into the clause, and never treat the three as interchangeable.
Detailed explanation
Three concepts distinguished
In a Chinese contract a single character can change the rights and obligations:
- Statutory deposit: security; the exact wording matters and breach consequences follow statutory rules, so the proportion should not be excessive.
- Booking payment: in practice usually treated as an advance; whether and how it is refunded depends on the contract.
- Advance payment: service consideration paid early, settled against work actually completed.
Clauses to scrutinize
- Which term is used, its proportion, and when it converts into service fees.
- Refund rules and itemized deductions if the company cancels or the project stops.
- Refund arrangements and liability if the agency fails to start on time.
- Refund arrival deadlines, late interest or liquidated damages.
Payment habits
Large startup sums must go to a corporate account with an invoice; note the contract number and payment nature on the transfer, never use a personal account. In export hubs such as Wenzhou and Quanzhou, paying before the contract exists leaves no written basis—sign first.
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