mlinhares parent
Fraud, its very likely people doing that are using stolen cards and will not pay, so the provider will be slapped with a loss for the service rendered and then a dispute on the card.
Why let them rent a cheaper server? What will the discover in a month or so that they don't know at the start?
> What will the discover in a month or so that they don't know at the start?
That at least the card they're paying with is not stolen (the real owner would start a dispute).
It will start to build a positive reputation for the client, prompting the provider to take the greater risk.
Are bank cards that bad compared to cash or cryptocurrency? Why don't they let pay with cryptocurrency which cannot be charged back?
With crypto you would need to pre-pay... And with many of the charging models of cloud offerings that is actually quite complex thing. Same really goes for deposited credits of fiat. What should happen when you run out? How fast should your resources be killed?