First this becomes a he said /she said situation, and there is no way to prove which of you is in the right.
But lose the attitude immediately.
This isn't a urination match. It's business.
So, you are allowed to demand that the buyer return the item and to withold the refund until that happens. The buyer should be using Confirmation of Delivery especially since the transaction has become hostile.
If the buyer returns the item, if you do not refund Paypal will and come after you for their money. This will leave you with a black mark on your selling account, which will be more expensive than you imagine.
If the buyer does not return the item, you are not required to refund. But the buyer can leave feedback and Detailed Seller Ratings, which are also more expensive than you imagine.
With no feedback in the past six months and no DSRs, that could kill your selling venture immediately.
Feedback can be appealed, but there is no guarantee you would win. You might.
Politely tell the buyer to return the item for a full refund.
If he opens a Dispute, enter in the dispute that you will make a full refund when he returns the item.
You are not required to refund his return postage.
Politely.--- Captain Malcolm Reynolds.
