Program application and payment processing

There are definitely pros and cons to both. You don't say how much the amount to be charged will be, but I think that could be a pretty big factor.

For instance - most people could part with $15 that is automatically charged on an unspecified future date. They don't have to organize their other credit card activity around the potential charge, holding off five days on other purchases. So you might collect the credit card and authorization at the time of application, and send a courtesy reminder the day before the credit card is charged.

However, a four-day review period implies a more exclusive membership and a higher charge. And most people wouldn't want a potential (example) $1,500 charge hanging over their heads for days. So, in that case, you wouldn't collect credit card info with the application; you'd send a congratulations letter upon acceptance and a link for payment. The benefits to this:

1. The user can use whichever card is the best option when payment is truly due.
2. It gives them the opportunity to change their mind without having to call in to change cards or cancel a payment.
3. If your company decides to add other payment methods, such as Buy Now, Pay Later (Affirm, Afterpay, etc.) that will become easier to handle in the moment the payment is due.
4. Applicants who are rejected aren't worrying that their card might have been charged for something they're not getting.

Whether payment details should be required before or after applying for membership is a tricky question.

Strictly from a UX point of view, asking for payment after approving the membership is better for customers, for multiple reasons:

• they don't have to worry about having enough funds on a future date
• they don't have to worry about what happens to their data if they get rejected
• they can decide to cancel the membership without having to pay and ask for refund
• the application form is shorter and easier to complete

But when it comes to business needs, asking for payment details upfront gets a better conversion:

• you make sure that customers are committed to paying for membership
• they don't get the chance to change their mind so easily
• asking for refund creates friction that prevents them from cancelling
• you can better control the onboarding flow once the membership is approved

So the question becomes:
Who do you want to have more control? The customers or the business?

In fact, the question becomes:
Who is making the decision? And how much does the company care about its users vs its profits?