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Mailing checks is the most convenient method that our operations manager has to get the money out to the largest number of folks. Not everyone has a paypal account, and the software that we're using for our online store doesn't currently support partial returns on items, so we can't go the credit card route.

In the future, we'd like to move bits around instead of paper. Faced with the choice between moving paper or not doing a rebate at all, we went with moving paper.