We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Shutterstock/Dean Drobot

You may want to continue using PayPal if you're funding any risky projects

The service is no longer covering crowdfunding under its Purchase Protection plan, but Irish users are safe.

THOSE LOOKING TO fund a project on crowdfunding sites like IndieGoGo could be better off using PayPal to cover themselves in case something goes wrong.

The payments company quietly announced changes to its user agreement which says that its Purchase Protection plan won’t cover payments on crowdfunding platforms.

The idea behind it was if you funded a project and then it falls through, doesn’t arrive or is significantly different to how it was described, you could ask PayPal to get your funds back.

The changes only apply to certain countries like the US and Australia. A spokesperson for PayPal Ireland told the changes do not apply to Irish users.

The move is unsurprising considering the nature of crowdfunding. While some services like Kickstarter only transfer funds when a target is reached, others like IndieGoGo let the project organisers keep the funds regardless of whether it’s a success or not.

The protection is only applicable to those which allow PayPal as a way of funding projects like IndieGoGo, which let those behind the project keep the funds, regardless of whether it meets its target or not.

Kickstarter, one of the biggest crowdfunding platforms in the world, issued an independent study which found that 9% of projects on the site failed to deliver rewards.

So while you still need to exercise caution before you decide to fund a project, in certain cases you have some protection.

Read: Your iPhone has a handy feature that lets you access anything with one hand >

Read: There’s a battery on the way that could change everything… >

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.