PayPal nixes Purchase Protection for payments made through crowdfunding platforms | TechCrunch


If you use your PayPal account to support a crowdfunding campaign, you can’t rely on its Purchase Protection plan anymore. The payment platform has announced that after June 25, payments made on crowdfunding platforms will no longer be eligible for the program, which allows users to open disputes for items that don’t arrive or are different from described. Supporting any crowdfunding campaign comes with a degree with a risk because you have to trust that your money will actually be used for the stated purpose, whether it’s helping someone reach a goal or supporting the development of a new product. In an emailed statement, PayPal said: In Australia, Brazil, Canada, Japan, United States and other countries, we have excluded payments made to crowdfunding campaigns from our buyer protection programs. This is consistent with the risks and uncertainties involved in contributing to crowdfunding campaigns, which do not guarantee a return for the investment made in these types of campaigns. We work with our crowdfunding platform partners to encourage fundraisers to communicate the risks involved in investing in their campaign to donors. According to a report released last year by Kickstarter, one of the biggest crowdfunding platforms, nine percent of successfully funded projects fail to deliver rewards, but 65 percent of backers surveyed said their rewards were delivered on time.

Source: PayPal nixes Purchase Protection for payments made through crowdfunding platforms | TechCrunch

Advertisements

Your comments & opinions are most welcome!

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s