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JKMatt - how many people do you think, if given the opportunity, would value all their cards at $50 to get a cheaper turnaround time regardless of value? Now, say those same people are all sending in $1000 cards and they all come back creased or otherwise damaged. Do you think that they will all just say, "Oh well, silly me, I should have valued it higher - just send me the $50 and I'll be happy" or do you think its more likely that they demand to be compensated for the lost value to their $1000 card? Now, lets suppose you are correct that legally sgc is only on the hook for $50 (which I dont necessarily agree with) but sgc gets threatened with a lawsuit over the additional lost value. Does it cost sgc more time and money to deal with the threatened action than it does to just pay the person what they are asking?
Regardless of what their liability might be capped at, if Im them, I require that you pay for the service level that the card should rightfully be valued at so I dont have to deal with the headaches.