Don't use Moneygram to exchange for BTC (as least, not often)

I am a small seller of BTC on localbitcoins.com. After conducting a dozen or so trades in a few days for which I accepted Moneygram transfer as payment, Moneygram decided to block payments to me without offering any explanation. Last week, I had multiple buyers caught in a bad situation in which they were informed that their payments were placed on hold and they had to call Moneygram in order to receive a refund. Most were able to complete the transactions by sending payment to me through alternative means. One buyer reported that a Moneygram representative informed him that payments to me had been blacklisted due to suspicion of fraud (a completely speculative and baseless accusation). I have contacted them and Moneygram refuses to review the case or their decision. In an e-mailed response, a rep wrote to me that Moneygram offers “person-to-person wire transfer service directed towards fulfilling the customers’ needs of sending money to friends and family members. Person-to-person service cannot be used for any business purposes.” However, this stipulation is not openly advertised on their website and I was not informed at any time prior to being blacklisted from receiving payments. Their customer support reps are generally curt and unhelpful. I strongly recommend not utilizing their services.

I have one buyer who has been trying, unsuccessfully, to receive a refund for nearly a week now. Moneygram will not refund the money to him, and they will not pay it out to me. At this point I'm not sure what to do about this outstanding transaction. The buyer is getting impatient, and I'm sympathetic. I may end up sending him the BTC anyway, although it will cost me personally, in order to maintain my flawless reputation. Now I understand why so few sellers on localbitcoins.com offer Moneygram as a payment method. It was a mistake for me to do so.