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.