Be careful with refunding straight through Paypal. Recently I've refunded with Paypal because the payment was meant to be cash. The transaction went ahead through eBay, buyer paid with cash on pick up, item was marked as sent. I later received a defect, reason "out of stock". The system has been set up to trigger a Paypal refund made directly in Paypal rather than through an eBay cancellation as automatically a defect. Has happened to me twice. I contacted eBay and they removed the defect. There was evidence in my messages that the buyer paid and picked up, so the defect was a mistake.