EOT not occuring after subscription cancellation (Authorize.net)

We are using s2member pro with Authorize.net as the payment gateway. In S2member(Pro)->Auth.Net Options->Automatic EOT Behavior, it says that if a subscriptions is cancelled via Authorize.Net, s2member will eventually be notified and the customer will be removed, demoted, etc. base on eot configuration.

We just tested this by manually cancelling a subscription via the s2member API on 5/3 and the user has yet to be demoted.

Logging is enabled and there is no reference to that user. Does anybody have any insight as to why s2member is not handling the automatic EOT on a subscription cancellation?