I currently offer a money back guarantee with all of my hosting packages but I am worried about customers who buy hosting only to cancel 1 day before the period ends.

Are there any methods I could use to prevent these kind of customers.

How long is the money back?

if its 30days, change it to 10days.

Firstly thank you for your reply and I originally decided to make it 30 days but instead I made it 15 days but I don’t know if this will prevent these kind of customers.

There are occassions when you may end up with a "host hopper"
It hasnt been a problem for us and we offer a 30 day guarantee.
If a client is sincerely looking for web hosting and hes had good service for those 30 days then there is really no need to cancel.
Im not sure what you offer but from your signature...you may just be attracting the WRONG kind of client. Unlimited, cheap, etc. is an "invitation" to trouble.
Just my opinion.

I actually haven’t had any ‘host hoppers’ but what I am saying is that I worry about them and I hope I do not get any of them.

Thank you for your opinon but after my market research I consider my prices cheaper than other UK hosts and I offer no limitations to the features I provide. Also I mean I do not provide unlimited services but rather Unmetered so basically I do not mind how much bandwidth or Mysql databases my clients use as servers are usually upgraded.

But thanks for your opinion and the info I have received

Make an activation fee to deter freeloaders.
End of story.

It's what credit card companies do which offer 0%APR. Offer a 2% handling fee to fight against people jumping from 0% card to the next one.

let them purchase for domain. guess u can at least tight them this way.
transfer of domain need 60 days as usual

nothing will prevent such customers, when you get a customer you are happy, but for sure you do not know what he will cause you, this cannot be predicted, correct? so just have a high hope that the percentage for such customers who cancel service 1 day prior to the end of money back period will be very low and good luck

to me customer is hard to find, even if 10% of then cancel plan, i be in big lost
strategy is to put measure before things happen. stay on guard.

I don't think this is a serious problem, if you think the service you offer is top quality, then there's absolutely nothing for you to worry abt, But even if the customer ask for a refund within the 30 days or 15 just giv him the refund,..no big fuzz

Almost 50% of accounts of my customers are closed by server people to abuse the services. 30% out of rest 50% asks for refunds. I have 60 days but if money is refunded they will go for charge back. Despite 60 days money back some times they ask their bank to get money back and this costs me a lot. I have mentioned in another post how I am handling this situation; but things are not very comfortable.