I totally understand your pain but I don't agree. We got rid of the CC on our signup (www.nusii.com). We got many more users because of that (3 to 4 times more)

I totally understand your pain but I don't agree. We got rid of the CC on our signup (www.nusii.com). We got many more users because of that (3 to 4 times more) but we've seen that the conversion rate (trial to paid) was WAY lower. 4% instead of 40%. We don't exactly know why this is, but I think it is because the CC makes you want to try the product much more. You end up with a happier user. Our biggest mistake was getting rid of the CC on the signup. I could write a very similar blog post. Free trial period with a 60 days money back guaranty works the best for us and our users.