Paypal Won’t Protect You if Crowdfunding Projects Fail
John Williamson / 4 years ago
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.