Return Without Filing Dispute?
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I purchased a mechanical watch from a private seller on a watch forum. I paid via goods and services, so I'm eligible for purchase protection. I received the watch and it's definitely authentic, but there is an issue with the stopwatch function of the timepiece. I contacted the seller about this issue, and he offered to refund my payment pending receipt of the watch. I was going to request the refund by raising a dispute, but the seller wants me to return the watch first without filing a dispute and then he'll issue the refund. The seller states that he'd rather not I initiate a dispute and return the watch first since that will give him some time to ensure that the funds are available for when he goes to initiate the refund. I guess my understanding is that if I were to file a dispute the funds would be frozen until the dispute is resolved or closed. I was wondering about the process for this:
The seller does seem honest and I do think that he would refund me my money once he receives the watch, but you never know. What if he doesn't issue the refund once I return the watch? Should I send him the watch back without opening a dispute? Shouldn't I initiate a dispute so it's recorded and on file? If I go ahead and ship back the watch to him without filing a dispute, then what can I do in the off-chance that he does not issue a refund?
All of our communication thus far has been through the watch forum's private messaging system.
Thank you in advance.

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