Paypal to adjust policy for crowdfunding
Paypal announced yesterday that it is working on a way to simplify making payments to crowdfunding campaigns.
Paypal vice president of risk management Tomer Barel wrote that the company is working to make crowdfunding easier, but such changes must work to benefit all parties involved – which could be complicated, he said.
There may be good reason to be cautious of crowdfunding campaigns. Barel cited consumer confusion as one issue, but other issues have appeared in past crowdfunded campaigns. Paypal froze Lab Zero Games' account back in April when several Skullgirls pledges were to potentially be revoked. Lab Zero asked fans to vote for DLC characters, and this led to the fear that losing parties in the vote would revoke their pledges, leading to massive amounts of chargebacks.
Barel revealed that a senior member of his risk management team will be reviewed by a senior team member before any action is taken in the future. He encouraged anyone who experiences an “outstanding” issue with crowdfunded to contact him directly at email@example.com.
Do you think this is the right direction for Paypal? Is the company going far enough to protect all parties?