As far as I know, it's possible to close a dispute anytime. If it's a claim, they can still cancel it unless the decision to refund him has been made already. If it's the latter, I'm not sure what happens if you try to send money to a closed Paypal account but you can always send it to a close relative or friend's account and have them pass it on for you? Edit: For how to cancel it - if it's a dispute and the claim has not been opened yet, he can go to the transaction page and simply press the Cancel that is in blue.
... View more