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Paypal adjust policies to fix issues surrounding crowdfunding

PayPal looks to improve bad rep when it comes to crowdfunding payments with newly revised policies.

@CharlesJGantt
Published Fri, Mar 14 2014 10:57 AM CDT   |   Updated Mon, Oct 19 2020 8:15 PM CDT

When it comes to crowdfunding, Paypal is not the most popular of choices when it comes to transaction processing. This is because the company has withheld funds in the past when taking crowdfunding donations on behalf of project creators. This is a problem because the whole idea of crowdfunding is to generate the funding needed to move forward with a project. Paypal is looking to change its image with the crowdfunding crowd by altering its policies on the subject.

Paypal adjust policies to fix issues surrounding crowdfunding | TweakTown.com

PayPal's Chief Risk Officer, Tomer Barel, says that his company now contacts campaign owners early in the crowdfunding process in an effort to better understand the projects goals. Different government regulations apply based on if the campaign is fundraising or simply offering pre-order sales. PayPal also has varying policies based on this as well and says it will not put limits on the account if the campaign is strictly fundraising. Restrictions will apply however if the capaign is strictly a pre-order type project. "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," Barel says.

NEWS SOURCE:thenextweb.com

A web developer by day, Charles comes to TweakTown after a short break from the Tech Journalism world. Formerly the Editor in Chief at TheBestCaseScenario, he now writes Maker and DIY content. Charles is a self proclaimed Maker of Things and is a major supporter of the Maker movement. In his free time, Charles likes to build just about anything, with past projects ranging from custom PC cooling control systems to 3D printers. Other expensive addictions include Photography, Astronomy and Home Automation.

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