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A LOT of companies do this, even in the US. It is typically called "Advanced RMA". Most of the time they place a "hold" on your credit card account but do not actually charge it until it reaches that timeframe if they did not received the item, usually 30 days later.
There may be other Canadian government requirements that allow (or possibly force) companies to actually charge the money for it, and then refund afterward, but I am not sure if that is the case.
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