Cancellation policy
A cancellation policy states how much notice a client must give to cancel without charge, and what happens if they give less. It is only meaningful if the booking flow actually enforces it.
Also called: late cancellation, cancellation window, cancellation terms
A policy on a wall is a statement of hope. A policy attached to a deposit is a mechanism. The difference shows up entirely in what happens when someone cancels an hour before.
Clear beats strict. A 24-hour rule that everyone understands and the shop applies consistently outperforms a harsher rule applied when the owner is annoyed.
In Booked, cancelling a booking with a deposit settles that deposit server-side according to the shop's setting, so the outcome does not depend on the client keeping a browser tab open.