PayPal Will No Longer Protect Your Crowdfunding Cash
Tuesday, May 10, 2016
PayPal is changing its purchase protection rules to reflect increasing risks associated with crowdfunding. The new language, which will go into effect in June, state that “payments on crowdfunding platforms” will no longer be eligible for Purchase Protection.
The move reflects two interesting trends. First, it shows that crowdfunding is going strong in entirely new populations and this popularity is bringing new customers to the fray. These customers are clearly getting upset when crowdfunding projects fail and are actively trying to grab their cash back when it happens.