Cancelling Transaction vs Unpaid Case

[phillippa4049]

I sold an item a week ago for pretty small change, however postage was going to be $12.50 since it was over 500gm.  (All this was clearly set out in item description)

Winning bidder contacted me a couple of days after invoice was sent to say she would be unable to make payment until the 14th of April which is when she would get paid.  Gave buyer benefit of doubt since lots of people are doing it tough. 

Now had a message saying something has happened and can no longer pay at all.

My questions are:

Is it better to open an unpaid item dispute and then close it after 4 days? (And inform the 'buyer' I will be doing this)

Or is it better to cancel the transaction (after receiving written agreement from 'buyer' that she wants transaction cancelled)?

Does cancelling transactions leave a bad impression on a member's reputation?

Thank you very much for any advice you are able to pass on 🙂