The buyers says it is defective but when i get it back it works perfectly, do i still have to give a full refund ?. I normally don't accept returns and i think they are using the eBay guarantee to get around this. Any advice welcome as to how do i proceed.

You can't avoid refunding the buyer at this point, but you can report them for misusing eBay's Money Back Guarantee: https://www.ebay.co.uk/help/sr?query=report+buyer&origin=1&aiSummary=true

refunding a buyer who claims item is defective but when i receive it it works perfectly | Member To Member Support

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refunding a buyer who claims item is defective but when i receive it it works perfectly | Member To Member Support | eBay UK