It's a standard back to base warranty.
What your suggesting is a total ball-ache.
You then need to block trace every payment, which become entirely more convoluted and confusing for customer service.
Keep it simple. Ship it, can you fix it? or is it something more involved? in which case ship a replacement - get it out the door as soon as poss.
If Redacted wants to share his original tracking code, and is happy with us sharing the return code - you'll see for yourself - turn around the same day.
Sorry Bitcoinorama, but I have disagree with this return policy and the line of reasoning. Lots of companies ship out advance replacement parts with a credit card security deposit, no questions asked. It's flat out lazy for KnC to stick to their guns on this policy and I highly suggest that they revise it for the future.
For the most part, KnC managed to rise above the competitors - why not listen to your customers and go the extra mile? For a company that managed to get it 90% right, it sort of seems complacent and myopic to not want to improve the areas where there is definitely needed improvement.
There are many of us that will want to order from KNC again and improving the customer service would really lock in customer loyalty.