This will go straight to Swiss if you send back to Swatch Group.
It will take longer time i guess. Yes, once they receive it, they will quote you a price and if you agreed, they will start fixing it.
If you don't, then i think they will still charge you for the shipping cost.
All in all, i think it will going to take a while to get it fix if you send back to Swatch Group. Looking at the watch condition, they might have several things change unless you specifically told them not to.
Alternatively, you can send to a trusted watchmatket in town. I guess you can PM Chris to find out more. He has a reliable watchmaker if you decided not to send back to Swatch.
CHeers!
scott