Will I be charged if the hotel cancelled the booking (on booking.com)?

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A court in your location might or might not find that you have made a binding promise to pay by requesting the booking.

(I would expect most sane jurisdictions to interpret the prepayment condition to mean that the hotel explicit wanted there to be no contract between you until you have sent the prepayment -- but IANAL and your jurisdiction may fail to live up to my concept of sanity).

However, in practice this is irrelevant. The reason why they're demanding prepayment in the first place is that they don't want to spend time and effort to chase down no-shows after the fact to collect payment through legal means. Likewise, they won't trouble themselves to go after you; they'll be happy enough to have the opportunity to let someone else book the room.

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