But the issue is that in having his account terminated, he's also losing access to all historical purchases made over the years. The CC company may be willing to accept a charge-back on recent purchases, but what about the application/game purchased four years ago that's tied to the account. It's no longer accessible, but is the CC willing to refund for a purchase made that far back?

I honestly don't know, but if I had to guess it would be no.