Chances are real good you're getting a neg no matter what you do, whether partial refund, full refund, whatever. Don't let the possibility of getting a neg make you do something you wouldn't otherwise.
As for contacting eBay, I wouldn't until he actually files a claim. Contacting them pre-emptively will get you nowhere. They certainly won't block him from filing for a refund. If he files a claim, they will require him to return the card for a refund. The return may be on your dime, but at least you'll have the card back. If he doesn't comply, he won't get a refund. Ebay won't mandate a partial refund and allow him to keep the card. Worst case scenario, the funds are tied up until the case times out, at which point you ask eBay to release the funds and since he won't have proof of delivery from the return, they will.
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