how do I refund when it says funds held?

[nickstmoritz]

This is driving me mad! Buyer has returned an item for a refund which I am happy to do but because she opened a dispute without contacting me first I can't see how to refund as there is no option to do this. Says funds are being held when I look at the paypal transaction. How can I refund her and resolve the case? Phoned paypal and no help at all they just said it is an ebay issue. Any help appreciated.

arrggh ok I have sorted it. I needed to click on "send another response" to get to the refund bit in the resolution centre. That was a right royal pain and much easier before cases opened automatically. Oh well at least I know now. It is not a particularly clear option is it? Could mean anything.