Buyer beware: PayPal drops purchase protection for crowdfunding – CNET
Kickstarters and IndieGoGo fans take note: PayPal has updated its terms of service, removing purchase protection for payments made on crowdfunding platforms.
The new policy comes into effect as of June 25, and also drops protections for users paying for gambling and gaming (or “any other activity with an entry fee and a prize”) and money paid to government agencies. PayPal has been contacted for comment.
PayPal has long billed its policy as a way to protect buyers if a purchase “doesn’t go as planned,” and has even expanded to cover digital purchases like Uber rides and digital music purchases. But as of next month, they will no longer foot the bill if your chosen crowdfunding campaign collapses or if the final product isn’t quite what you were after.
Gone are the days of Kickstarting a potato salad, safe in the knowledge that you’ll be protected even if the mayonnaise is sub-par. It was a simpler time.