I haven't read any responses to this yet. I just want to tell you what can and probably will happen. You WILL accept a return on it or you will be forced to give a refund without ever getting the phone back. You have no recourse. If they file a dispute Ebay will refund them from your Payapl account. It doesn't matter if you transferred the money out. You have a form of payment associated with your Paypal account and when Ebay debits your Paypal account, and they can, it will take the money from whatever form of payment you have on file. You agree to all this when you become a seller on Ebay. If a person says the item is not as described it does not matter one way or the other whether or not you WANT to accept a return. You will have to. Ebay will require the buyer send the item back with return tracking and delivery confirmation. And once the tracking shows you got it back they will refund the buyer automatically from your Paypal account. You may very well get back a different broken phone. You may get back a box with abrick in it. There is nothing you can do about it. I have been ripped off by a scam buyer myself and there is nothing you can do about it. So you can either accept the return yourself and do the refund yourself after you have gotten the item back or you can do nothing and Ebay will do it for you. I am telling you this from personal experience. I am a buyer and a seller on Ebay. Now I am going to go read other's responses. edited to add: when you refund you CANNOT withhold original shipping. You have to refund the shipping too if you charged it. But since you gave free shipping you cannot deduct that money from the refund.