I don't know what the consumer protection laws are in your country but you over here if a buyer asks for a refund you have to give it to him. The OP should understand that it is a part of doing business. People change their minds. It happens. So you should deduct any money transfer expenses and refund the buyer in exchange for your domain.
In my country, people can't just "change their minds" and expect a business to absorb the costs of their indecisiveness, indecision and whimsy. Here, we value the ability of businesses to progress without being held liable to the whim of idiots. The idea that a business has to refund any given sale simply because the buyer "changed their mind" is a concept so hilariously awful, I am having a hard time believing that an actual country seriously made that law. In some businesses, it makes sense to allow 'no questions asked' refunds as a matter of policy, but in other businesses, having that notion be codified as a matter of law could completely bankrupt them.
We value things like "personal responsibility" where people are responsible for their own decisions and cannot simply run around blaming anyone and everyone for their own dumb mistakes and expecting "business" to pick up the tab.
Anyway, as far as the OP goes, one thing I can say for certain; dealing on the internet has simultaneously reaffirmed and completely destroyed my faith in humanity. I realize it's an oxymoron, but there is no medium where I'm consistently (and simultaneously) reminded of both the idiocy and decency of mankind. In the situation you're dealing with, it's frustrating as hell, but standard. One thing about idiots is that they fail. One thing about failures is that they regularly and consistently attempt to ease the pain of their failure by trying to pass the consequences of it onto others.
I wouldn't- for a second, consider refunding this idiots money, but then again, I don't swim in this end of the pool much anymore, save for rare occasions as a buyer of a low quality name that suits a purpose.
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On the issue of paypal, they're just totally awful.
Some years ago, I had an auction where I was selling multiple items of a similar theme.
One purchaser bought three seperate lots, totaling about $800. A couple of $200 lots and one $400 lot. He made one single $800 payment, I mailed them out, he received them, all's well.
About three weeks later, I get a package in the mail, with
one of the $200 items returned. Weird... I sent him an email asking what was going on, no reply. After a while, he files a paypal claim for, you guessed it, the WHOLE AMOUNT. In the notes, he said "refund my $200 and this goes away".
I told him to pound sand- I don't refund because of buyers remorse... Sure enough, paypal awarded him the $800. A phone call later, they reexamined the case and a couple weeks after that, adjusted the total back down to the $200. He actually tried to tell the paypal people that he had returned all items, in spite of making a claim in the remarks that contradicted this. Thankfully, they saw through it but enduring the process first hand really showed me how easy it would've been for me to get totally screwed out of money and the stuff, had the dishonest buyer not been a COMPLETE idiot.
Further, the fact that they initially awarded him the entire amount- even when he said in the remarks "refund my $200" pretty much says that the people who decide the cases don't even bother to read anything.
Paypal is the worst of the worst of the worst and they DESPERATELY need to be regulated by a bank. We all have to use them out of necessity, but I am sorely looking for a decent alternative.
