PayPal has changed their policies regarding crowdfunding campaigns in a stopgap measure to protect themselves from possible project cancellation. This was released in a blog post to the PayPal website by Chief Risk Officer Tomer Barel, he went on to explain that anyone who decides to use PayPal for crowdfunding purposes will be forced to explicitly state its backers that there is a risk of the "product" not ever being completed or delivered.

PayPal has started to engage crowdfunding campaign owners early on to clearly understand their campaign goals and help them ensure their campaigns are compliant with our policies and government regulations.

Together with the crowdfunding sites, we identify if campaigns are strictly fundraising or pre-selling merchandise.

We enable their campaigns without interrupting payments under the condition that the campaign owner is explicit and transparent to their contributors that there is no guarantee of delivery regarding the rewards being offered upon contribution.Tomer Barel

Posted: Mar 17, 2014 3:41 pm
Related Forum: Gaming Discussion