Assistance on A Return- no return seller and hold on funds question....

[georgepermahos33]

Hi. Some advice needed please as Im relatively new seller and I sold a vintage 50 yr old straight razor to a buyer( high amount of feedback both buyer/seller. )I had a no return set for my policy. The razor I examined before selling and I saw no damage etc. When I checked my paypal which should have had a zero balance it was in the negative for the amount of that sale. Said that amount was on hold. So i headed to ebay and the buyer has opened a return request stating the reason was item broken, not working, defective. There was a separate msg from the buyer explaining how he receives it and unfortunately he needed to return it. He said he found a few tiny mm cracks in the blade when under a magnifying glass and that it was unusable.
He was cordial but said he wanted a full refund. I did not respond to the ebay return request yet. I did msg him back and and said that is unfortunate and I looked it over good and saw no problems with it or I would never have sold it. I said I wanted to solve the issue and him to be happy and asked if he wanted to keep it at a discount and what he thought was fair and how he wanted to proceed. He msg back he believes I didn't sell it like that in purpose and that someone without as much knowledge about razors as him could easily miss the problem and that he need the magnifying glass to see the 4 cracks , but he couldn't accept a deal to keep it and wanted a refund as he couldn't use or sell it.

I have not responded any further yet.  That's the correspondence and info. I wanted guidance on what my options are mainly as

I had a no returns policy, based on this kind of return request if I do grant a return how to handle it, who pays shipping etc.

And my paypal has put that amount on hold from zero, which put me in the negative.l( yes I had already withdrew the funds to pay bills) Since then I made a few sales which totaled 5 dollars more than the sale with the hold. So balance of 5 dollars with the on hold funds still on hold.
I don't have a bank account attatched to my paypal. How would a refund  even work when the funds are on hold. It's my understanding it's a return disputed now, not a claim.

If I accept a return and item is to be returned to me when does the refund need to be sent ( after I get item back? Within what time frame? Is it automatic? Or manually done? I've been told if I accept the request the funds will be released since it's not yet a claim and then I would refund it once the returned package is received. Is this correct? And if I don't respond in time or he escalates it to a claim the funds still will stay on hold?

Sorry for so many questions. Easiest way is to ask you knowledgable people is what options do I have. Especially since my policy was no returns. 
Accept return, not accept , and the processes. And how the hold works.... I think I provided all info to get some assistance and know my options, and how things work. I'm actually not trying to not return but as a small time seller the shipping and the hold funds is proving to be an issue. Thanks in advance.

[kensgiftshop]

If the buyer says it's damaged, you don't have much choice other then excepting the return. Except the return and send a return shipping label and send refund when the item is returned.

[hidy-hoo]

@georgepermahos33  Hi, george, and welcome to the Part Time eBay Sellers group.  As has been mentioned, you will have to accept the return.  A "no return" policy is only valid for "remorse" returns. When a buyer requests a return for NAD (not as described), as your buyer has, then eBay policy states that the seller must accept the return and pay for the return shipping label.  

All new or "occasional" sellers will encounter a "hold" on their funds...don't take it personally as it happens to all sellers in those categories. Since you have withdrawn the money for this sale from your PayPal account, you will have to deposit that amount back to your account.  You can do this by adding your bank account or a credit card.  In the future, remember that eBay gives a buyer 30 days to return an item for not as described, so it is best to leave enough money in your account to cover this possibility.

It is important that you follow the time line spelled out in the return request...tick the box for sending a return label to the buyer.  The cost of the label will be taken from your PayPal account...if for some reason the label isn't used, you won't be charged.  This must be done before the buyer escalates the case ~ note the date in the details of the return request.  If you don't accept the return and send the label within the time frame, you will receive a strike without seller resolution, two of which will put your account in jeopardy of being closed by eBay.  Once the package is returned to you, refund the buyer. I would also send him a message ASAP letting him know that you will accept the return so he doesn't escalate the case.

Bottom line...you gotta hurry and figure out how to get the funds back to PayPal so the buyer can be refunded when you receive the package back...if you have more questions, don't hesitate to ask!