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No Purchase Protection for Paypal Users on Crowdfunding Platform

Paypal to remove buyer’s protection policy only for Crowdfunding platform. Users buying through such platform can no longer open a dispute in case of issues faced with the purchase.

Paypal has announced to revoke Purchase protection for users who spend money on Crowdfunding platform. After June 25, no user will be able to claim a refund in case of discrepancy. These changes will affect the industry and will force users to spend more sensibly. With more than 179 million users online, the policy is undertaken due to constant issues faced by buyers. Crowdfunding platforms bring the innovative product, yet to be released in the market. Buyers directly contact the seller through crowd funding website for purchase. In case of a wrong product or late delivery, users can register a dispute via the payment gateway.

After revoking the policy for buyer’s protection, these platforms could face downfall in sales. Such policies would help people to regain confidence while spending money on products, If they face any problem with the purchase, dispute is the only mode to receive the money back. Rising concern linked with buying on crowdfunding platform has led to such decision.

Earlier as reported in the news, Paypal had also frozen accounts of crowd funding platform. By excluding crowd funding from buyer’s protection policy, Paypal can eliminate in freezing accounts due to misconduct in selling products. Rising popularity of crowdfunding platform has put users at high risk to buy unique products, where delivery is never guaranteed. Sometimes, users have faced problems with rewards they never received on or before the final product launch. This situation added to a further amount of disputes.

To avoid such circumstances in future, excluding platforms that cause issues with payments is a viable solution.


  • No Paypal Buyers Purchase protection on Crowdfunding platform
  • The policy will be applicable after June 25th.

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Startup-Buzz Team

Startup-Buzz Team

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