@ez_mart_au wrote:

My payments are on hold but buyer is asking for refund due to delay. Now his order payment will be released when Item is delivered. How can buyer ask for refund. Payment is still in ebay's wallet.

why  not agree to refund? Ebay will take the refund from the money they are holding. You won't have to pay any extra and the buyer won't get any angrier.

Are you waiting for funds to be paid to you before you will post an item?
You need to post promptly and not wait for the payment to be cleared.
Sorry if I misread your comments.

You should send when the order comes in, not wait until after the funds are cleared.

Not the buyer’s problem

Is the delay your fault or has it been posted and delayed by the postal service?

Has the buyer opened a dispute?

You are lucky your payment is only on hold and that it is not like eBay used to be

Your beyond rubbish feedback would have had you account shut down by eBay a couple of years back

Here we go again.

97 items sold 

But the small amount of feedback includes 1 revised and  two ebay automated positive feedback .

Have a look at how this one's  going.

133 items sold

But the small amount of feedback includes  five eBay automated positive feedback

https://community.ebay.com.au/t5/Selling/EBay-Payouts/td-p/2607584

I wish eBay would just get rid of these sellers instead of rewarding them  with positive feedback

You are going to have greater problems than that because with you atrocious feedback eBay is very likely to shut you down completely.