Refund issues
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If that is the error message given to you by the Paypal system then that means that there is nothing wrong on your end and the buyer needs to contact Paypal for the issue to be fixed. It could be that there is something going on with their account.
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not entirely, the thing is YOU are willing to refund the money back however, for some reason, Paypal's system detected something that might have affected the buyer's account. Did you try to contact your buyer and asked what's going on with their account? I would recommend going on a three way call with you, the buyer and Paypal so that it can be checked. This is a forum. We can't see the account details of a customer.
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