How to respond to a return made outside of eBay rules

[woodjim]

I need some help here; already posted this, no answers, maybe I put it in the wrong place.  Anyway...

A buyer purchased an item from me, received it, couldn't make it work and decided to return it through eBay's normal return process. The buyer subsequently figured out the problem, seemed satisfied with the purchase, and kept the item past eBay's 30-day return window. A few days after the return window closed, I was advised by eBay that the return process was not completed, that the buyer's dispute was found in my (seller's) favor, and that no refund is required.  Case closed.

But the buyer then decided to return the item after all and has it on the way directly back to me outside of eBay. Moreover, the buyer indicated to me (in writing!) that he would dispute the sale with his credit card company and obtain a refund that way, rather than initiating a second eBay return case. At this point I asked eBay what to do and got an automated answer that "if the item is indeed returned [I should] refund the buyer." But my eBay payout, which I did already receive, would not be a full refund to the buyer, as eBay has retained the Transaction Fee, sales tax collected and shipping charges.

So what do I do? If I accept the item back, do I refund my payout amount and retain the item?  That wouldn't be fair.  And if the buyer does initiate a credit card dispute, will the credit card company come after me or after eBay for reimbursement? I'm beginning to wonder if this buyer is perhaps attempting a scam to get double-refunded on this purchase. Something smells fishy here and I'm not at all sure what to do. I've been unable to find a direct channel to fully explain this situation to a real person at eBay for further, non-automated advice. What do i do next?

[nenu-5410]

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@woodjim wrote:

I can't see how eBay would "step back" in an instance such as this, as they are the entity that the card company dealt with, the initial and direct recipients of the card company's funds, a decent portion of which they retained for themselves and for the buyer's taxing authority. 

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eBay does not deal with the card company. 

In the same way that the speakers don't know a. the brand or b. if the microphone is carbon or electret upstream from the power amp, the mixer, and the preamp, eBay does not know a. the name and b. the contact info of the card company.

So when the payment dispute makes its way to you, eBay is just a bystander and hands you the entire bill. And if you challenge the dispute and lose, you will be billed another $20.

You're stuck:

1. The option to cancel the transaction and refund just your payout plus 40 cents lasts only 30 days.

2. After that you could send funds outside of eBay to repay the buyer, forfeiting your fees.

-- A bad buyer can proceed to file a payment dispute, to get a double refund.

3. Or wait for the payment dispute, to repay more than you were paid.

[woodjim · Accepted solution]

ULTIMATE SOLUTION!

Based on recommendations from most all of you here, I initiated a refund to the buyer, through eBay, for the full amount of his expenditure.  Lo and behold I was immediately credited with the Transaction fee, etc., such that what was debited from my PayPal account is the exact amount that I received from eBay in my initial payout for this transaction.  As far as I can tell this balances perfectly, so both buyer and seller in this event should be quite satisfied.  If this turns out not to be the case, I will update.

So many thanks to you all for your advice! I find user forums invaluable; there's nothing like one's peers to learn from... they've been there and done that.