Here's a policy of a company that's doing similar stuff. I am assuming they are using ARB as they claim no financing charge at all for the transaction. They also require credit check prior to approval.
" <COMPANY> is now making available to you easy monthly installments to make your purchase experience more affordable and convenient. And, there is no finance charge.
It's really easy. Just select the monthly payment option on the Shopping Bag page and the cost of your purchase will be divided into equal monthly payments. This option applies only to credit card purchases and to orders between $50 and $5,000.
At the time of your shipping, we will bill your credit card for the first monthly payment plus your total tax and any applicable shipping and handling fees. The balance is then automatically billed to your credit card in equal monthly installments starting the same day one month from the day the product was purchased.
Multi-payment orders are pending until credit approval via a credit check. Customer support may contact customers for additional information if required.
We have also made available for you, a schedule of your subsequent payments. This service is made available FREE to enhance your shopping experience at <COMPANY>.
All items remain the property of <COMPANY> until paid in full. In the event of non-compliance with the multi-pay terms or fraudulent use of funds, <COMPANY> reserves the right to appear at the purchaser's or receiver's premises and take possession of the said merchandise without prior consent or notice."
so I am guessing if I were to do this, I should do a credit check first by obtaining customer's social security number. If credit is good enough, I will go ahead with the ARB?
It seems to me that I am really taking the same amount of risk as taking order from someone who bought something and then dispute or stop credit card payment. Is that right?