chargebacks may get you banned, but cancelled cards are fine. It's on the business to perform dunning requests and maintain short billing grace periods for auto

chargebacks may get you banned, but cancelled cards are fine. It's on the business to perform dunning requests and maintain short billing grace periods for automatic renewal charge retries before retracting services. Revolut's method is to automatically cancel the virtual card after the user-initiated purchase goes through, not before, and not by issuing chargebacks. Obviously if you actually want to have a subscription autorenewed and stay uninterrupted, you shouldn't use the virtual cards there as you will be getting service interruptions every billing cycle and have to manually update your payment with a new vcard. Still, not likely to get you banned. A different risk of using virtual cards is that the merchant might not be able to issue a refund after the bank destroys the card. source: as primary billing engineer at our subscription B2C company — cancelled cards give us no problems that make us consider banning a customer. The closest is when we have a customer using such a feature bombarding our support about service interruptions because of his own cancellations, and trying to calmly explain that they did that themselves. Chargebacks definitely do pose a problem though, as they increase the risk of us getting blacklisted as a fraudulent merchant, and also a more lengthy settlement process with the customer and bank, where we aren't even able to simply issue a refund and close the issue.