Buyer demanding a refund

I sold an item (pokemon card) and long after it was dispatched (2nd class letter) I received a message from the buying stating the packaging was disgusting and they would be negatively reviewing me. After looking at the photos they included the envelope itself was crumpled and ripped and the inside was covered in what looked like bits of dirt. The buyer was insisting the card was damaged and covered in dirt and I tried to argue I can issue a refund but the damage was not due to me but the delivery.
They have since responded saying that if I pay postage then they will send it back and then i can refund them. The thing is the returns policy on the item was buyer pays.
Should I be backing down and just paying the postage myself as they are now threatening to get Ebay involved. Thanks
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the item wasn't as described so you, the seller, have to pay the return costs,

 

 

buyer pays is for change of mind returns.

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