To answer this question, please select “yes” if you will return the advance payment to the customer if they (the customer) cancel their purchase.
Advance payments are partial payments of the total purchase price that help to pay your actual expenses during the performance of a service or providing the goods to the customer. With an advance payment, the customer will have to pay the remainder of the purchase price upon the completion of the goods or services. Advanced payments are used to help pay your direct expenses (e.g. a house painter asks for an advance payment of $500.00 that will be used to purchase the paint. The customer needs to pay the remaining balance to you upon the house being painted).
A cancellation takes place when the buyer changes their mind about their purchase and asks not to receive the item prior to shipment (if they purchase goods), download (if they purchase digital products), or performance (if they purchased a service).
If you will not return the advance payment to the customer if they (the customer) cancel their purchase and will instead keep the advance payment, please select “no” to this question.