I've asked for cash on collection but they've paid via paypal... help please!

[Iwannamovenow]

I've sold something today on ebay, i'd said that it could be collected if need be, but that I would then want cash payment instead of paypal.

The person's paid via paypal, including the postage amount, but sent me a message asking if they can collect it later today.

I've sent them a message saying it's fine to collect, but that I would have to refund them first and they'd need to pay cash when they collect.

Have I done right?
What if they say no?
Sorry but i'm panicking a bit

Or would it possible to refund them the postage element in cash when they collect and get them to sign a "goods received" note?

By paying with paypal, you won't get the full amount as paypal take their fees from it. Not sure what the amount is, but I'm guessing its a % of what they paid.

You could refund their postage (minus paypal fees perhaps) and let them collect it. I think you can do a partial refund through paypal.

I'd refund it all and tell them to pay on collection, even if it takes a couple of days. They can get a refund via pay pal, claiming they never received the item and you'll be in the shit as you don't have a postage receipt.

Thanks, i've read lots of stories about people having the money taken back off them by paypal, with people saying they'd never received the item.
And paypal won't accept a note saying it's been collected.

Bloody annoying having to pay paypal their fee when it could have been avoided.

They've not replied to my email yet.
Thanks for the advice everyone.

If you refund the payment, you also get the fee part back.