Paypal Won’t Protect You if Crowdfunding Projects Fail

/ 4 years ago

Paypal Will Not Offer Refunds if You Back a Failed Crowdfunding Project

Typically, whenever you purchase goods or services online via Paypal, there’s some consumer protection and it’s possible to recover any funds lost in a fraudulent transaction. However, Paypal has clarified their new policy surrounding crowdfunding campaigns like Kickstarter and told users that it will no longer offer any Buyer Protection. This is a reasonable move because backing a crowdfunding project is seen as an investment, and as with all investments, there are their risks. The statement from Paypal reads:

“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.”

Sadly, many crowdfunding projects don’t come to fruition because of a soaring budget or complications during development. Failed campaigns are never designed to take people’s money and it’s always a shame when people don’t receive what they initially invested in. Of course, there are examples of fraudulent campaigns asking for money with no intention of creating a product. Honestly, I think Paypal have adopted a sensible approach here because consumers need to remember about the risks of crowdfunding. In the majority of cases, people are content with the projects they backed and feel their investment was worthwhile.

While it’s not an ideal situation, I understand it and anyone who backs a project as an early adopter knows the risks involved. Personally, I enjoy the notion of crowdfunding because it allows games from a bygone era to receive sequels and be enjoyed by modern audiences. Game publishers often perceive these genres as best left in the past which showcases the importance of crowdfunding efforts.

Topics: , , , ,


By supporting eTeknix, you help us grow and continue to bring you the latest newsreviews, and competitions. Follow us on FacebookTwitter and Instagram to keep up with the latest technology news, reviews and more. Share your favourite articles, chat with the team and more. Also check out eTeknix YouTube, where you'll find our latest video reviews, event coverage and features in 4K!

Looking for more exciting features on the latest technology? Check out our What We Know So Far section or our Fun Reads for some interesting original features.

eTeknix Facebook eTeknix Twitter eTeknix Instagram eTeknix Instagram

Check out our Latest Video

  • Be Social With eTeknix

    Facebook Twitter YouTube Instagram Reddit RSS
  • Latest Video

  • Features

  • Poll

    Is X570 Worth it?

  • Archives

Send this to a friend