The reason why they won't do it back to any prepaid card. There has now been two confirmed incidents of where 2 different prepaid card providers actually locked a persons account down. Pending further investigation. They've wanted everything from the original purchase receipts that proved they actually purchased merchandise for said amount, then they want a valid refund receipt, and a valid explanation on why the amount of purchases from the vendor doesn't amount to the amount of said "refund".
Long story short, I'm really curious on how they actually get away with this method. Last I knew from having a merchant account, per my merchant agreement. The only amount I can process back to a persons card is up to the amount purchased from me on there card. Not the amount of total purchases from me from there card and other payment methods. So I'm even wondering how/why even banks and credit card providers aren't catching onto this and actually locking more people out, because of these really irregular refunds.
All I have to say, is be very careful with this option. Unless if your legitimately have purchased at least lets say your withdrawal is for $800 and you've bought $900 from said merchant. I would watch out, I would take a guess that it won't be too long before normal checking and credit card accounts start catching onto these "excessive" refunds for purchases that don't even amount to what was actually charged.
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