Can buyer insist on refund if goods are as described and who pays for postage?

[geordienp]

I recently sold a game from the UK to someone in Germany after agreeing the price and international postage cost and received payment through PayPal. The buyer then changed his mind after the goods were already posted and rejected delivery, asking the courier to return to sender. Am I obliged to refund the buyer (assuming the goods are eventually returned to me) even though they were not faulty, and if so can I deduct the high international postage cost from any refund?

[kernowlass]

@geordienp 

Normally if a buyer won a claim for item received but not as described then they would have to return the item back to you with tracking to prove delivery before you had to refund.

Refusing delivery even if they filed a claim may result in them losing the claim as tracking would end on delivery to them and the decline and not show they returned it to you.

So if they go down the claim route wait it out and see what happens, if they lose OR don't file a claim then I would refund them item cost only which would be fair?