PayPal will not protect crowdfunding ventures

PayPal has updated its User Agreement, making some changes to what it offers Purchase Protection on. Specifically, it will no longer protect those who back projects that later go bust.

The policy change kicks in from June 25th, so you’ll have to adapt a buyer beware attitude when it comes to crowdfunding. From this date, you won’t be able to dispute the charge to get your money back if the project goes bust or if it doesn’t deliver what was promised.

The list of items not eligible for Purchase Protection also includes anything purchased from or an amount paid to a government agency, and gambling, gaming and/or any other activity with an entry fee and a prize.