Posted Jul 23, 2013 17:59 UTC (Tue) by khim
In reply to: credit
Parent article: Bacon: Announcing the Ubuntu Edge
Indeed. Unless a company is very new a likely explanation for why they can't get a merchant account is that the bank deems them too high a risk for defaulting. ie you will use your card, the company takes the money (from the bank, remember) and then you don't get a product and ask for the money back so the bank has to try to reclaim it from the quite possibly now bankrupt or disappeared retailer.
If people can convince regular investors that they have solid business case then they can just take a loan, no need for crowdfunding!
The whole freaking point of the crowdfounding is to collect money for something new and unproven! How can you expect a refund in such a case? You may sue campaign creators if the thing will turn out to be a fraud and get some of the money back that way, but to expect full refund from the system which is build exactly for cases where people deal with something new, risky and unproven... it's just beyond crazy.
You can only get all your money back in one case: if campaign is unsuccessful and funds are not collected. In this case PayPal works as fine as any bank. Everything else is not covered by usual credit card usage rules thus use of PayPal looks entirely appropriate. PayPal is created for just such cases!
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