Mutual Agreement

buyer wants a mutual agreement to cancel transaction that they have not paid for yet, can they initiate this

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No. If you agree to it, you have to initiate it as the seller:

Go to My eBay,

Click Sold.

Next to your listing, select Resolve a problem from the drop-down menu.

The Resolution Centre – Resolve a problem form appears.

Select I sold an item and want to cancel the transaction and click Continue.

Sign in to your account. The Cancel a transaction form appears.

If you get to the Resolution Centre from your item listing, your item number is already filled in.

If you get there another way, enter your item number and click Continue.

Under Give the buyer a reason for wanting to cancel this transaction, indicate your reason for cancelling (which here is buyer request to cancel) and then click Continue.

 

 

When the buyer gets the request to cancel, they need to agree, then you will get your final value fees back.

 

This page tells you all about it and has a link to the resolution centre too http://pages.ebay.com.au/help/sell/cancel-transaction-process.html#cancel