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In this case, it's a card in a plastic holder. I don't see any reason for the seller not to issue a refund, say within 45 days
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The problem with that, is that this WAS NOT a BIN, but rather an auction. What if the under bidder wanted a GAI card, and didn't win because the winning bidder wanted to play the "crackout game - let's get this into SGC holder and triple our money!". That is why most auction houses state NO RETURNS on graded cards, and I am in that camp as well. If I was the seller, I would not want to accept a return either.
Seller relists the card again, but because of so much negative publicity surrounding this card, this time it only sells for $500. Winning bidder pays, sends it to SGC for the upgrade, except this time SGC gives it an "88/7.5" same grade crossover. Now the card is worth the $3,000 and the seller only received $500. This card is going to be forever tainted as a 0% risk card for the buyer and a 100% liability for the seller. As long as the winning bidder submits it and it doesn't cross, he returns it for 100% refund. I am still not convinced the card is trimmed, as it was graded under the old GAI label when Mike Baker was looking at the cards....