Are there any services for this? I would think something like making a down payment you get back (QR code the service provider scans?) if you show up minus a processing fee. However the kind of people who pull stuff like this are also likely to exploit payment services to get their deposit back. So doing this on credit cards would be a nightmare. Is this the reason it doesnt exist? Or are there services like this?
I'm not sure the "you can cancel a cc payment" still holds, at least in my experience in the US. If I want I can certainly cancel a payment, but my cc would be blocked and a new one issued, which is a real pita for a small overcharge.
I guess as a user, I'd prefer to leave a downpayment if it's a service I use semi-regularly. For example I'm ok with a restaurant because I use opentable often, or I'd be ok if my yoga studio or alike charges me once for not showing up, because I go there weekly. For a service that I was supposed to use once, I didn't show up, and I have no plans to use again, I'd certainly try to put more effort to get my money back.
So, to your idea, I'd start exploring providers that establish a recurring rapport with their clients.
1. Taking payment up front is generally good. You get fewer cancellations, and earn more money.
2. Keeping those payments when people cancel is bad, you get unhappy customers and you lose CC disputes.
The last point is important. Not only do you get charged by the payments processor even when you win the dispute, you actually lose disputes frequently even when you do everything right. It’s just not worth it, and anyway the simple act of prepaying will do the most to limit no shows and cancellations.
1) customers being able to cancel their deposit payment through their payment processor
2) legal nightmare of who owns what when. As far as i recall its highly problematic to hold funds for somebody
3) legality and taxes
I think it is something that would be best solved with crypto (no this time for real) and having the default be that the depositor gets his money back. But that leaves the entry hurdle (and cost in and out of what ever coin) as well as fluctuations in price.