problem with a refund

I have agreed to refund an item for buyer

 

payment went through as paypal 

 

and they are saying that their paypal acount is inactive and  they paid with a credit card

 

they want me to credit to bank account as they cannot retreive the money from paypal

 

either way I"M in for a defect just checked out their feedback left for others

 

and they look look like the grim reaper