My local GW's accept returns for store credit. Returning things worth $700 for store credit would royally suck. I totally agree that doing it for outlets on a credit card would be a good idea though!
I just sold a pair of jeans I bought on the forum. I think I overpaid for them so I was just trying to make my money back. I had them up as a BINOBO @ 99.99 and had no bites for two weeks other than a guy that kept offering 50. I paid 55 for them, so I was just trying to break even.
Set up an auction starting at 49.99 with BIN of 90 and just ended it early when the guy messaged to offer 70. I just about broke even so it's all good. I'll have to do my homework next time, but I'm glad it didn't put me in the red for said item.
I bet you sell for more because it notifies all the previous watchers/bidders and attracts new ones due to the 'time' factor.