There is an order trigger in Infusionsoft that allows you to run actions on a successful auto-charge given that the previous auto-charge for that invoice was declined. I believe that implementing this in tandem with your idea above would do the trick.

If it were me, however, I would probably just put people into a 'warning' campaign when they decline and give them a period of time to get up to speed on payments before 'turning them off' (also automatic).