How does PSA determine how much to pay out if you show them a PSA graded card you have that they confirm to be a counterfeit card they missed? What reference do they use to determine what a card is worth to know how much to pay you?
Similarly, how do they calculate what to pay someone if they show PSA that they have a PSA 10 that has a scratch and thereby should be a lower grade? Don’t they pay you the difference in value of a PSA 10 vs. a PSA 8 of that card? Where do they look to determine those values?
There’s some rules… the PSA card has to be encased and they have to evaluate it in 98% of situations.
If they find the card to be counterfeit they will reimburse the lost value at the market value of an authentic one.
If they determine that the card doesnt deserve its current grade they will reimburse the difference between the old grade and the new grade.
In the case of Pokemon… they determine values using their judgement based on recent confirmed sales such as eBay and other private auctions/auction houses like the Pikachu illustrator sale for example. They will determine whether the card is deserving of its grade based the usual grade review process, so, for instance, just because there is a spot of damage on a graded PSA 10 card that doesn’t qualify it for a financial guarantee claim. It has to go through their formal review process.