PayPal has announced that they will stop offering buyer protection for crowdfunding from June, the company has decided to do this because these projects are not guaranteed to go ahead and people may end us losing money.
The news of the changes was discovered in PayPal’s terms and conditions by The Verge and it will come into effect from the 25th of June this year.
Engadget received a statement from PayPal, which you can see below that explains the changes to their buyer protection feature.
“In Australia, Brazil, Canada, Japan, United States and certain 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.”
With a some big campaigns failing over the last few months and people losing their money on some, it is hardly surprising that PayPal has decided to stop offering buyer protection on crowdfunding as these projects are not guaranteed.
Source Engadget
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