PayPal No Longer Providing Crowdfunding Protection

TechCrunch reports that PayPal is changing its policy and will no longer provide Purchase Protection for crowdfunding donations.

The online publication thinks that it may be because there’s a new type of donor who has been asking for her money back if the crowdfunder does not perform as promised.

PayPal now puts crowdfunding in the same risk category (for them) as “purchasing or paying a government agency and “gambling, gaming and/or any other activity with an entry fee and a prize…”

http://techcrunch.com/2016/05/09/paypal-will-no-longer-protect-your-crowdfunding-cash/?ncid=rss

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Broker dealers, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, fraud, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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