PayPal is changing its Purchase Protection policy and will no longer issue refunds to supporters when crowdfunding projects fail to deliver.
As of June 25, people who back crowdfunding projects using PayPal will be doing so at their own risk: If the campaign goes bust or doesn’t raise enough funds, supporters will no longer get a refund as they had done so before.
The change mostly affects the crowdfunding site Indiegogo as Kickstarter payments are not protected by PayPal, points out The Verge.
A Kickstarter study released last year found that 9 percent of all its projects fail to deliver rewards. Likewise, 8 percent of dollars pledged went to failed projects.
The new policy change will affect consumers in Australia, Brazil, Canada, Japan and the US among other countries.
Stay tuned to Brandsynario for more updates.