Refund for already purchased item

If you have already played or used the purchased item, a refund is normally declined.

can i use the items that i purchased? or is there a way for me to cancel the refund?

I personally wouldn't if those items were the ones being refunded. Eventually i think they will go away.

If the refund was already showing as "approved/accepted" then its already too late to cancel the refund.

Unfortunately since it has already been redeemed, it's no longer eligible for a refund. The only way to exchange it would be to refund it and purchase the correct item.

I have been denied a refund. The reason stated was that I had already received a refund. Yet it wasn't for this item it was for another item purchased the same day by accident.

I have informed my bank and they are working to handle the dispute. Why is it that Microsoft does not wish to refund me for an accidental purchase?

For your refund request ( an accidental purchase ) it can be denied if it does not meet the terms and condition of Microsoft. Possible that the item was purchased for more than 5 days when you requested the refund or you already have a previous refund
for the same reason