Not getting demoted or EOT upon failed

When someone’s first recurring payment doesn’t go through (denied), the S2 account is suspended. But if the first payment is successfully, and a sequential payment doesn’t go through (i.e. second, third, or fourth etc.) we receive notice the charge “failed” but no EOT appears and the S2 account remains active (for lack of better word. More accurately, they remain Level 2 members in our system.)