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You're assuming no fraud at all exists on Indiegogo. Someone could demand a refund because: 1) Their credit card was stolen and used to fund a project. They n

You're assuming no fraud at all exists on Indiegogo. Someone could demand a refund because: 1) Their credit card was stolen and used to fund a project. They never agreed to the charge,they're entitled to a refund. 2) The project was fraudulent. The creators never intended to fund the project using the money. They ran off with it instead. Those people were deceived, and are entitled to a refund (in general, but also under the credit card associations rules). Some potion of transaction on Indiegogo will be fraudulent. Paypal or Indiegogo must have a way of recovering that money.. if they don't then they will have to cover it themselves. That's the way it works. That's why payment processors create reserves for high-risk businesses.

kamjam 13y ago
This. As much as I hate PayPal (esp their "customer service"), this policy makes perfect sense to me. With stories of fraud on Kickstarter, due diligence is your friend! So with Kickstarter (and IGG, I don't know their policy) taking 5% and no responsibility, users only have chargebacks as a course of action. I don't think it is the $25 donationsusers that care, what about the users who donate $2500? http://www.polygon.com/gaming/2012/6/27/3099051/backers-rights-what-kickstarter-funders-can-expect-when-they-pledge http://www.polygon.com/gaming/2012/6/27/3099051/backers-righ... http://www.dailydot.com/business/why-kickstarter-ripe-scams/ http://www.dailydot.com/business/why-kickstarter-ripe-scams/