I'm very strict when I have my business and I say absolutely no refunds- make sure you know what you want! I am here to make money, not give it away when you don't like how something didn't go your way. I am not a pushover when I sell.
I would NOT have even mentioned the refund. It's disappointing, but you have to be hard on people buying.
Be friendly, but don't be their friend. I know you were nervous about your feedback, but unless you stated that it would get to someone on time for Christmas, you could argue that with her. I always have customers repeat what my policy says- it may sound bossy, but I don't like being pushed around.
I hope it goes well for you
