Buyer insists no refund eventhough PayPal and eBay confirms refund has been issued

[rhpt]

A buyer returned an item, and I approved the refund before I received the item back. (I'm not a regular seller and so I am not used to having returns). For whatever reason, PayPal sent an eCheck to the buyer for the refund. After six days, I get an email from PayPal and eBay saying the funds have cleared and the return complete. However, the buyer says that there is no money in his account or bank and there is no credit on his credit card. I called eBay, who assured me that everything is fine. I also called PayPal, and the CSR assured me that the credit has been sent to the buyer.  I informed the buyer of all this and forwarded all the emails I received from PayPal and eBay. The buyer claims that he also called PayPal and his bank and the refund has not appeared. He goes on to imply that  I am not telling the truth and that he's never experienced so many issues before. I should also note he left negative feedback - my first one since I opened an account in 1998.  I do not know what to do at this point. The buyer still has the item and refuses to return it since he never received a refund or shipping label. I'm also wondering why PayPal sent an eCheck for the refund. Am I just out of luck at this point?

[myboardid]

Paypal sent an e-check because there wasn't enough money in your PP account to cover the refund, so they accessed your back-up source, your bank account. 

I suspect your buyer is lying, has the money, and is essentially stealing your item by not sending it back. 

However, it is possible, if he used a credit card to pay originally, the refund would go directly to the card, and the card company is probably taking its sweet time crediting the account.