Today, Furbrications paid that refund request.
The refund had a short note saying "sorry bout the badge," and even though that's short and sweet (good enough for me personally), I'm happy she at least said that regarding the situation.
I'm sure at some point this will get read by the appropriate people, and my goal of writing this is so you will hopefully learn from past mistakes, so I'll just close by saying communication would have satisfied me. Regardless even if you hadn't even started my commission 6 months down the line, just acknowledging me and being honest would have earned far more kudos from me than just no communication. If you are honest and upfront with your clients, it will take you a long way. No excuses, No games, just be real with it.
Best of luck in your future business endeavors. Live and learn right?