Good article. The canceled Cap One card in my signature went through that hassle a few years back.
I did a trial with a vendor, canceled, they still kept charging and would not reverse charges. I finally disputed all 15 or so transaction successfully. Not much later, I started having small charges on the card at odd places. I reported the card as compromised and charges still trickled through. I thought it was odd and annoying. But I finally got the card closed and that was that.
I find the best way to mitigate risk is to use Citi's Virtual Account Numbers feature. You can do them as one-offs or set a limited dollar amount and time period, say $1000 over a period of 12 months.
The tell-tale is that the expiration date is the following month. I had a life insurance provider accept then refuse then accept my different card numbers. I guess they were leery about a new credit card number each month, which is why the time/amount limit feature can be helpful.
I remember reading this awhile back http://uncrunched.com/2012/08/01/recurring-credit-card-charges-horror/
I think it's how its coded when the card is closed
I mean I thought, if you report it stolen the number should no longer be used vs if you wanted to change the number for numbers sake
But now I think if there's an established pattern of payment there, it will still be allowed to go through