Refund of a refund !

I sold an item on 3rd July. It was posted on 8th July.

On 12th July the buyer contacted me stating item had not been received 

 I asked the buyer to wait 7 days, as it was posted 2nd class.

I had nothing heard from the buyer, the item was showing as despatched not delivered.  So I refunded today

 

Then i have a message from the buyer saying item has been received. And wants to return the refund 

 She asked for my bank account details ( which I refused) 

I suggested payment through PayPal. f and f so I don't pay a fee ?

Is this correct. or should the buyer refund in a different way ?

 

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Give her your Address she can send you a Cheque or a Postal Order.

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