Paypal No Longer Protects Crowdfunding Supporters


For years now we have watched as Kickstarter projects have slipped past their product launch windows.  This sucks because people give cold hard cash to make these things happen.  For a while though, that pain was alleviated slightly thanks to Paypal.  For many reading this it may be news that Paypal ever offered any protection for crowdfunding pledges, I was unaware of this too.  The protection was implemented if money was sent correctly.

That correct way of sending money that qualified for protection with Paypal was by actually making a purchase.  If you sent money to a crowdfunding project as a “friend or family” so there were no fees then you are simply out of luck.  If you made a purchase for an item now with intent to receive it later then you were protected.

This protection fell under the Paypal purchase protection.  If you paid for a purchase then never received it, or felt it was never coming as in most cases with crowdfunding projects, then you could apply for a refund.  For the most part, Paypal had no problem issuing refunds if you sent the money correctly.

This purchase protection acted like insurance of sorts for crowdfunding projects and their backers.  If you wish to read the new rule changes please visit the Paypal website.  Look for section 13.3 Ineligible Items.

Many across the web are wondering how this will affect the amount of money that is being thrown at crowdfunding projects.  I doubt it is going to be all that detrimental as people with money to spare will continue to support projects that catch their eye.  I am sure many are like me and not even aware that Paypal offered any protection in relation to crowdfunding pledges.

Have you backed a crowdfunding project and not received your promised stuff?  Let me know in the comments.  I am interested in knowing if anyone reading this has had troubles with Kickstarter or any of the many other similar sites.

Carl Williams

It is time gaming journalism takes its rightful place as proper sources and not fanboys giving free advertising. If you wish to support writers like Carl please use the links below.

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