How can I refund someone their postage when they returned an item?

[VintageMyriad]

A person purchased a necklace from me last week, a silvertone one, stated silver tone, pics are all silver, but they thought it looked more gold and that's why they bought it, however on receipt of it, it wasn't as 'gold' looking as they thought and I said okay to return.  It was free postage on the item when I sold it, I've refunded them the full price they paid, however it cost them £1.95 to return it to me and I'm unable to refund them it back, offered to refund their paypal account, they don't have one.  Is there anywhere on Etsy I can refund them this amount?  It wouldn't allow me to refund postage as they didn't pay any.  I can't believe I'm doing all this for £1.95.......

[NanaLetha]

You  can’t refund more than they paid you 

[Amaradorn]

When you accept a return due to 'change of mind' the buyer is responsible for the return shipping costs. It says this in your listings...

Buyers are responsible for return postage costs. If the item is not returned in its original condition, the buyer is responsible for any loss in value.

However if you have agreed to refund the return shipping costs, you can send it to them via PayPal. You will need to ask them if they have a PayPal account and which email address they use for it so you can send the money there. 

[TinLizziAntiques]

OP, since you are in the UK, and your buyer is, too, why not send an old-fashioned check by snail mail? You can still count it as a tax deduction and your bank account will reflect the payment. 

[MinnieMaudsAttic]

@TinLizziAntiques   In the UK, very few people use cheques any more.  Many large companies won’t accept them.

I certainly wouldn’t accept a cheque - all the banks in my part of London have closed so paying it in to an account would be difficult.

[MinnieMaudsAttic]

@VintageMyriad   You could send a payment by bank transfer if the customer doesn’t have a PayPal account.

[CraftyCornishMaids]

Unlike Amazon etc, Etsy doesn't let you do this,

bank transfer would be the easiest way,

in future, you could buy a prepaid label for them