Cancelled Order

[karra_plj]

 I sold an item which was for Collection Only but the buyer asked me to post the item. I stated that it would be impossible to do this as, apart from the item being Collection Only, it would be too bulky and a solid weight to even consider posting. I have sent 3 emails to her stating that it would be best to cancel this order but so far I have not received any communication from her.  I have since gone ahead and cancelled the order myself and now I have seen information that a refund will be initiated but this cannot be as payment was never received in the first place. Does this mean that Managed Payments will now automatically refund her and I will be out of pocket? With the old system I had non-payment set up to start on the 4th day and then everything followed through in the way that it should have but now with Managed Payments I am at a loss to figure out how a payment can be initiated when said payment was never received in the first place. If this is now the new procedure then there must surely be a flaw in the system. Any advice would be appreciated. Thank You.