Is It Legal to Charge a No-Show Fee at a Restaurant?

In general, yes: a restaurant in the US can charge a disclosed no-show fee to a card the guest provided at booking. The practice is widespread and platform-supported (every major reservation system offers it), and press coverage treats fees of roughly $15 to $25 per head as normal. The legality rests on a few principles that are the same ones that make the fee collectible in practice.

Principle 1: disclosure before commitment

The enforceable version of a no-show fee is a term the guest agreed to when booking: the amount and conditions were visible where the card was entered, not buried in a linked page. This is basic contract formation and also what card networks look for in a dispute. If your booking flow shows "no-shows charged $20 per guest, cancel free until 4 hours before" next to the card field and the guest proceeds, you have both.

Principle 2: authorization to charge the card

Charging a saved card requires the cardholder's authorization for that type of charge. Reservation systems implement this properly: the guest enters the card into the processor's form, agrees to the policy, and the system stores consent alongside the token. What is never defensible: writing card numbers down at the host stand, or charging a card taken for one purpose (a deposit) for a different, undisclosed amount.

Principle 3: the amount should relate to the harm

Contract law in many places distinguishes reasonable pre-agreed compensation from penalties. A fee anchored to your genuine loss (a share of the average per-person check for the covers held) sits comfortably; documented practice runs $10-25 per head casual and $50 or more in fine dining. A punitive number far above the value of the table invites both legal and card-network trouble, and loses the guest forever besides.

Principle 4: chargebacks are the real court

In practice, few no-show fees are ever litigated; they are disputed through the card networks. Press coverage notes chargebacks remain a pain for restaurants even with well-run policies. You win disputes with evidence (policy shown at booking, confirmation email, cancellation link, call attempt at 15 minutes) and you avoid them by waiving for anyone who made contact. A fee charged to a guest who phoned ahead is a dispute you will likely lose and a review you will definitely get.

Things that vary by jurisdiction (check locally)

• Consumer-disclosure rules: some jurisdictions have specific requirements for how and when fees must be presented.
• Card surcharge and convenience-fee rules: relevant if you pass processing costs or platform fees (like OpenTable's 2% service charge) to the guest rather than absorbing them.
• Automatic-renewal and negative-option rules: mostly aimed elsewhere, but they shape how "agree at booking, charge later" flows must be worded in some places.
• Outside the US: several countries regulate pre-authorized charges and cancellation terms more tightly; the principles above still apply, the thresholds differ.

We deliberately cite no specific statutes here: fee rules are jurisdiction-specific, and a list of paraphrased state laws in a blog post is how restaurants get confidently wrong answers. Ask counsel or your restaurant association for your state's current position; bring your exact policy wording to that conversation.

A policy that stays on the right side everywhere

1. Show the exact fee and window at booking, next to the card field.
2. Repeat both in the confirmation email with a working cancel link.
3. Hold the table 15-20 minutes and call before marking a no-show.
4. Charge exactly the disclosed amount, and only after the call attempt.
5. Waive on any contact, and keep records of everything.

Common questions

Can a restaurant legally charge my card for a no-show?

Generally yes, if the fee and conditions were disclosed when you booked and you provided the card with that understanding. Guests who believe a charge was undisclosed or wrong can dispute it with their card issuer.

Is there a legal maximum for no-show fees?

No general US maximum that we can cite; the practical ceiling is reasonableness (compensation, not penalty) and what card networks will uphold in a dispute. Documented practice runs $10-25 per head in casual rooms and $50 or more in fine dining.

Do I need a lawyer to set up a no-show fee?

For a standard disclosed hold at documented fee levels, most operators simply use their platform's built-in flow. A quick check with counsel or your restaurant association is cheap insurance, and worth it for deposit-heavy models, franchises and anywhere outside the US.