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Because PayPal's job is simply do deliver money from Party A to Party B. It's not their job to worry about how the money is used, the USPS does not audit the ch
by surge 13y ago
Because PayPal's job is simply do deliver money from Party A to Party B. It's not their job to worry about how the money is used, the USPS does not audit the check your Grandma sent for your birthday.
Crowdsourcing is a gift, like a donation to PBS, where you might get a coffee mug, but if PBS decides to to stop showing Downton Abbey, you can't rescind your donation.
If PayPal has a problem with charge backs, they could simply stop taking payments for indiegogo projects (which its indiegogo's job to vet projects, not PayPal's) or put in big fat letters that THIS IS A NON-SALE OF GOODS TRANSACTION AND ABSOLUTELY NO CHARGE BACKS WILL BE ALLOWED FOR MONEY SENT TO THIS ACCOUNT AFTER FUNDS HAVE BEEN PROCESSED before they click the final confirmation button. Which is basically in writing already when you agree to send funds to indiegogo or Kickstarter. Problem solved. If you have a problem with projects not delivering, don't donate, take it up with indiegogo, or take it to small claims court.
- wmf 13y agoBecause PayPal's job is simply do deliver money from Party A to Party B. The problem is that PayPal is not dealing with real money but with credit cards. AFAIK, companies like Western Union don't have such onerous restrictions because they accept cash or as-good-as-cash. ...ABSOLUTELY NO CHARGE BACKS WILL BE ALLOWED... Credit cards fundamentally allow chargebacks; you can't turn them off. If you want to do business with no chargebacks you cannot accept credit cards either directly or indirectly.
- Xylakant 13y ago> Credit cards fundamentally allow chargebacks; you can't turn them off. If you want to do business with no chargebacks you cannot accept credit cards either directly or indirectly. So why is this not a problem for IGG? Since it obviously isn't - they cash out 15 days after funding closes. If the difference is that IGG takes a higher cut, then fair enough, let PayPal take a higher cut.
- wmf 13y agoIf the difference is that IGG takes a higher cut, then fair enough, let PayPal take a higher cut. So you're asking PayPal to create a new level of service. (They probably won't, but their business is up to them.) That's fine, but you[1] should probably do that before using PayPal. And if PayPal doesn't create the new service you want, don't use PayPal. [1] By "you" I really mean anyone who's crowdfunding.
- Xylakant 13y ago> So you're asking PayPal to create a new level of service. No, I'm just saying that the problem seems not to be a fundamental one. And the point here is that PP does accept payments on behalf of IGG. If I decide to fund a campaign, one of the payment options is PayPal (obviously that can be configured and turned off, since it's off for mailpile atm). The funds donated to mailpile via PayPal were donated via the IGG website. That means to me, that PayPal is well aware that the user is trying to fund a risky endeavour, since by definition all IndieGoGo campaigns are presale and likely to fail. What I don't get here is: Why does PayPal as Payment Provider for IndieGoGo suddenly cop out and say "My dear, but that's too risky. I'll freeze the funds."
- gtirloni 13y agoIt IS a fundamental one. Most of your comments center on "why it's not a problem for IGG" while failing to understand the risks involved (and the risk mitigation actions taken).
- surge 13y agoI have checking setup on my PayPal, maybe they should only allow direct confirmed withdrawals then, if VISA or Mastercard is the problem.
- wmf 13y agoACH also has chargebacks. Also, I think one of the merits of PayPal is its simplicity, so having to track the difference between "chargebackable money" and "real money" in every account would add significant complexity. ("I have plenty of money in my PayPal account, why can't I spend it at this particular merchant?" "Sorry, you have fake money but the merchant wants real money.")