When providers have payment rules such as requiring a deposit, or making the client pay for a cancelled appointment, how does one go about in making this payment?  How does the money change hands?  via the internet? but wouldn't that require some form of identification?  Or do you show up at the incall, pay the money, then come back for your future appointment?

As for cancellations or NCNS, I find it hard to believe that a hobbyist would then go out of his way to pay a stranger for a session that never occurred.  Has anyone ever done this and how?

The hobby is a cash business.  I don't get involved with women who want deposits or show cockamamie fees on their sites.  There are plenty of great providers out there who understand the nature of a cash business.

Why would you see one?    I've never NCNSed a girl ever, but would not see a provider who had this garbage.  If they have rules like that up front, it's likely they have too many rules in bed too.  Go elsewhere.

I've never had a cancellation fee so I can't comment on that.
E-transfer is most common.  I don't need to provide the gent my info, he wires the money to my email address.  From there I send it to my bank account.  

Paypal is used by many ladies though I myself don't apply this method.

In the case of traveling to see someone, it isn't unusual to have a chq written out. Many ladies on the high end have businesses registered, which they pay taxes on. The chqs are typically made out under the business name and sent via courrier to a rented mailing address.

A few times I had an envelope stuffed with cash couriered to me. Not the best choice, but so far it's never gone wrong.

If we live in the same city, we meet for a causal off the clock drink, and they'll hand it to me at that time.

In some cases I take wire transfer, however, those are people whom I know extremely well. If we're traveling abroad together, they already know my full name and my place of work anyway.  I wouldn't travel to another country with someone I didn't trust, as by doing so I'm already putting my life in their hands.

I'd not see anyone requiring a deposit for a regular meeting.  It's just not necessary.  
If I were to book an overnight or more...  it would be with someone I've met before.  She would be blocking a big chunk of her time & potential losses if the event in cancelled.  A deposit would become appropriate.  Certainly if travel of any distance, say be air, was involved a deposit to cover costs would be appropriate.  In either case a lot of trust is required.
I have heard of PayPal freezing accounts where illegal activity is suspected.  Be careful.
skb

Do a search and you'll see, just like the previous rresponses to your op, most hobbyists are leary of deposits/prepayments.

I recently added a cancellation fee to my website, not to be mean, but to deter those who are notorious NCNS/last-minute cancellations. The guys who are serious about scheduling an appointment, this does not affect. Do things happen that cause someone to cancel last minute? Of course, & those are the same people who try to give as much notice as possible... they don't just not show up, without a call, text or e-mail.

I have the clause, for those who KNOW ahead of time, that this is their MO, so they have ONE chance to schedule with me, & if they NCNS, if they ever want to schedule again, there is a $100 cancellation fee tacked onto the original donation for a new appointment. I do not ask for the $ up-front, as again, most who do this, were never serious about scheduling an appointment in the first place. There are some people who I think get a kick out of NCNS or not answering their door or phone once you arrive... it appears this cuts down on those.

Many people think we're only out "time" when we get NCNS or drive to an outcall & the guy doesn't answer the door or phone once we arrive... but some of us have children, & every time we leave the house, we pay a babysitter, & whether we go on our appointment or not, they still expect to be paid.

It was with a much reviewed provider/porn star, so I felt reasonably comfortable that she would not no-show, and she didn't.  She offerred a $100 discount for pre-pay, so I took it and Pay-palled.  Worked out fine.

It's a scratch off you buy at the store (7/11, CVS).  It's real easy you get a number you send it to the provider, it cost $5, no ID, happens instantly.  If you go to Brenda Boobies web site she describes the whole thing in detail with photographs of the  correct card.  Several providers use them.

The provider will tell you how she wants it. The grendot reload card works well as ishootcraps posted. Several other ways to do it without having a real name. For many guys, they just won't see someone who requires a deposit. Personally I would only send money to a provider for a travel date, and I would only do a travel date with someone I have spent time with previously and probably have her real information and can just make a deposit into her account.

advertising, eating out 24/7, cab fares, etc.
I feel that it is considerate and more than appropriate for the client to have a dog in the fight as well.
I am in no way going to invest money into a tour which has such a high loss potential without some sort of assurance...period
This may not affect those that are of a higher volume but it significantly affects the lower volume Providers.

I also have a cancellation fee especially for traveling.
Paying 100 in advance , covers should they cancel.
If they do not cancel , that 100 is deducted from the
rate. I think it is only fair many of us do not keep
a travel account we travel when asked and it is unfair
that we should have to pay our own way to meet someone
who may not show up .

only when they're booking a cooking date. Alot of time and energy goes into it so its necessary.

I personally use greendot and paypal (i use paypal for my square biz too. cc statement just has my company name).  Sometimes i will meet the gent in person to collect it.