Long term credit card block/financing

[JustAnotherNomad]

I wish to offer a service to customers that comes with an annual (up front) cost to me.
But I would like the customers to pay a monthly fee because I believe that saying “$300 / month, minimum term duration one year” (and then maybe offer a discount for advance payment) will be more attractive than saying “$3600 per year, payable in advance.”

But of course I am worried that they sign up, pay the first $300, I pay the $3000 or whatever it will cost me, and they disappear.
Is there some way to finance this where the risk will not be borne by me? Can I either block their credit card for a year and gradually release the block (probably not very attractive for the customer), or are there some banks that specialize in this?

 

[cckuhqilfownnfctux]

i think there is no way to do so.
A client can simply close the old card and issue a new one, telling to his bank that his old card was lost or got stolen.

 

[JustAnotherNomad]

You obviously don’t know how credit card blocks work. A credit card block would work just fine, but I’m not sure if it’s possible to hold it for so long. Also from a customer perspective, it’s not ideal.
I would prefer the financing option, but I’m not sure where to find a bank that would be willing to cover the risk.

 

[cckuhqilfownnfctux]

yea, I've never ran into it as I own debit cards only, and I thought you mean recurring payments.
so what prevents your client from calling their bank and asking to unblock the money or/and issue chargeback as they are unhappy with the service?

 

[JustAnotherNomad]

That would be like going to the store, being a new laptop, then calling your bank and saying you want to get your money back.

 

[cckuhqilfownnfctux]

more like ordering a laptop online and asking for refund a whole month before the laptop was even shipped.

 

[JustAnotherNomad]

Doesn’t really matter because they would sign a binding agreement. Can’t see how the chargeback would go through.

 

[rainman101]

Carf companies look after their customers..not you. 200% you will be ripped off.