When you are answering the Terms of Service questionnaire, you will be asked if you will return the advance payment to the customer if you cancel their purchase. You are being asked this question because you selected that you ask your customers to provide an advance payment.
Advance payments are partial payments of the total purchase price that help to pay your actual expenses during the performance of the service or providing the goods to your customer. With an advance payment, the customer will pay the remainder of the purchase price upon the completion of your obligations. Unlike a deposit, an advance payment is used to help pay for your direct expenses.
Select "yes" to this question if you will return the advance payment to the customer if you cancel the customer's purchase. Please note that this applies if you cancel the customer's purchase of your own volition (e.g. you ran out of the materials needed to make the goods or are ill and cannot perform the service), and not when the customer requests a cancellation themselves.