I think what seals the deal for these guys is when they lose their processing then get hit with fines and chargebacks that they can't cover.
I am pretty sure at that point Visa and MC or whoever is keeping all the income to cover fees and its in the program's best interest to be broke at that point.
I am sure the churn and burn theory is correct in some cases, but in most, I think legal and financial obligations make it more appealing at that point to just not have any income at all, close up shop and move to a new town.
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