When you are answering the Terms of Service questionnaire, you will be asked if you will return the advance payment to the customer if the customer cancels 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 the customer cancels their purchase. Please note that this question applies to situations in which the customer cancels their purchase, not if you cancel the purchase of your own volition (e.g. you run out of the materials required to make the goods or you are ill and cannot perform the service).