I own a small website hosting and services company. Most of my clients make automatic payments for recurring hosting services.
However, what is the appropriate way to handle customers that have simply moved their hosting elsewhere without any request to cancel services?
I have opted to contact clients in the past, since I believe that that level of personal service is a key part in growing a small hosting company, but as my business continues to grow, I'm not sure what is the best policy.
If the alternative is chargebacks, I would say absolutely. That's pain that you don't want to have to deal with.
Alternatively, if you wanted to try to get them active or find out specifically why they're not (or switched), you should check out what Patrick MacKenzie (patio11) is doing with Lifecycle Emails: https://training.kalzumeus.com/lifecycle-emails If you're likely to lose these customers anyway, it couldn't hurt giving it a try.
These (soon not to be) customers are gold - you should attempt to do whatever possible to contact them and learn the following:
From there, you gain valuable insight about what your product offering is missing, and objectively prioritize future feature sets.
And yes, I would reimburse their service and attempt to keep an open communication channel with them regarding your future offerings.