Sometimes you just have to give the god damn refund and spare yourself the grief. I really just... don't see the point of arguing if the client has a legitimate reason. Sometimes the policy doesn't take into account human reactions and emotions.

I tend to give the customer the benefit of the doubt if they're not rude, otherwise I let the manager handle it. Maybe that makes me a bad employee, don't care. Being a game adviser is a dangerous job if you're not careful!