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PayPal to cease protecting user from crowdfunding projects in June

By John Law - on 9 May 2016, 11:23am

PayPal to cease protecting user from crowdfunding projects in June

Image source: Engadget.

It’s been decided by PayPal that come June 25, 2016, the payment giant will cease their purchase protection policy for crowdfunding project, according to report from Engadget.

What this means is that PayPal’s decision to drop its purchase protection for projects seeking crowdfunding is the company’s way of telling consumers that they back a project at their own risk.

In other words, if a project goes ends up going south, fails to deliver on a project or even reach their intended funding goals, backers who supported the project will not be able to dispute the PayPal charge and seek a refund.

While the decision is likely to be repulsed by many backers who support their favorite artist or project on crowdfunding sites, such as Kickstarter, Indiegogo, and Patreon to name a few, it’s really not that surprising that PayPal would do this as a cost-cutting measure.

So far, PayPal has yet to provide any explanation or official statement to their decision.

Source: Engadget, The Verge.