equipment replacement value

I purchased an Iphone 6 s from consumer cellular for $200 in November 2019.

The phone went dead May 7, 2020. I contacted apple, we did some tests and confirmed it was dead.

Apple said they will replace phone and I will send them old phone. OK

They charged my credit card on a hold of $449 as equipment replacement value. This is insane, if they say phone was abused, then they charge the $449, this does not make sense since the retail value was $200

what is going on here?

Bob m