
I was going to avoid this because it makes my head spin because there are so many different scenario....
Another way to think about Kohls cash is in terms of a gift card. The money for your future purchase needs to come from somewhere. At then end of the day Kohls needs to balance their books (your money + kohls cash taken in - kohls cash issued - returns= sales for the day). When you earn Kohls cash you are essentially buying a gift card (in paper form) for future purchase. A portion of your purchase is using a coupon code to purchase the Kohls.

A couple of simple scenarios:
Today I buy shoes for $50 and get $10 Kohls Cash.
Purchase is really $40 for the shoes + $10 for Kohls Cash= $50 spent today
I return the shoes next week and I get back the $40 and keep my $10 for later. $40 + $10= $50 ticket price & amount of money I gave them (Kohls books are balanced)
If I got what the people seam to think is "fair":
Shoes returned for ticket price $50 + $10 Kohls Cash that I "deserve" are kept= -$60 that Kohls has now given me for purchasing the shoes and then returning them and they have lost $10.
A PP gave a great example about the vacumes. If Kohls keeps allowing you to return at ticket price and keep the Kohls Cash they, they loose $ on every single one of those transactions!
Kohls needs to stay balanced or they won't survive... They can't pay people to return things. Yes, the old policy was great but the new one though it may seam confusing, will keep them in the black.
Not sure if this will help anyone... really wish we could draw it out to make it easier. Have a great 2013 shoppers!