Interstate buyer has bought,paid PayPal a pick up only item,wants to send a courier to collect.

[ruby*bells]

On my selling ID - An interstate buyer has bought a pick up only item (no postage or freight options were offered) & paid with PayPal & now wants to send a courier to collect. Did not ask if this was okay before buying & paying. Due to work & family committments I cannot be at home waiting for a courier, pick up times have always been mutually agreed.  The item is fragile & will not be packed for a courier. Do I just refund their payment? If they leave negative can it be removed?