Managed Payments Can't Process Refund

[ichopshop]

I've been on managed payments for a few months and it "seems" to be working fine until recently.  Buyer purchased a low dollar item and soon after requested to cancel as it wasn't needed.  I cancel the purchase and everything seems fine for 2 days when I receive a notification stating "We couldn't complete the cancellation because the refund couldn't be processed successfully."  That's it.  No other suggestions or links.  I confirmed with buyer that the refund didn't go through, they received an equaly unhelpful notification.

What's my next step?  I was thinking of marking item as shipped and having the customer try a return, or maybe an INR?  No guarantee those would work either...  Thoughts?

Thanks,

Ian

[marnotom!]

Do you know how your buyer funded their payment?

[ypdc_dennis]

If they paid with a promo prepaid card that does not accept any additional money (so refunds might also be rejected).  tyler@ebay 

You could offer an equivalent discount on a future purchase for the refund.

-;-

[femmefan1946]

And if they back their Paypal account (or GooglePay?) with a bank account, the "echeck" they wrote may not yet have cleared the system, been paid out to Paypal, and forwarded to Managed Payments.

If there is then a cancellation requiring a refund, the entire path has to back up, step by step.