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To be as up front as possible. The more time you wait the more pissed they will be. They are going to be frustrated. Just be apologetic. Nothing else you can do, but rip the band-aid off quickly.
SRS1 - I think that's a different circumstance. I think that's ex-employees not allowed on premises etc rather than someone who said no to an offer. OP you won't be blacklisted, but they may deprioritize your application down the line. It's not a guarantee though, so I wouldn't put it off because you'll make it worse by procrastinating
I’d just be transparent, kind, and apologetic. If the bridge still burns after the conversation then you’ll know you did everything you could in this particular situation.
Why have you changed your mind?