ebay refund question.


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I sold something on ebay and I'd accidentally listed it slightly wrong and it was returned, I refunded the buyer the item cost + post, I remember trying to add extra to cover the postage cost to return the item as well but there was no way to do that.
They're now saying they won't close the case until I refund them the $3.50 they paid to post it back and saying it's ebay return guidelines that I have to, but I can't see how that's possible because there was no way to add extra.
I just assumed the buyer had to eat the postage of the item back if they wanted to return it...
Anyone have advice?
The Seller always pays return postage if the item is faulty or doesn't match the description. I believe the only time the buyer pays return postage is when they change their mind or the item doesn't suit their needs/requirements.
thanks, it's just confusing cos there was no way for me to add the extra 3.50 to the refund.
I'll just have to get their PayPal details and send it to them privately.