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PayPal and Attack on Cataclysm devs resolve issue surrounding release of Indiegogo funding

Tuesday, 10th September 2013 20:19 GMT By Staff

PayPal has issued a statement to VG247 stating it and Nyu Media have resolved the issues surrounding the release of fund gained through the Indigogo campaign for Yatagarasu Attack on Cataclysm.

It was reported earlier today that PayPal had refused to release as much as 50% of the $120,000 raised on IndieGoGo until after the developers have finished completing the game.

Today, PayPal issued VG247 the following statement:

“We have reached out to Nyu Media and the issue has been resolved. We want to reiterate that supporting these campaigns is an exciting new part of our business. We are working closely with industry-leaders like IndieGoGo and adapting our processes and policies to better serve the innovative companies that are relying on PayPal and crowd funding campaigns to grow their businesses.

“We never want to get in the way of innovation, but as a global payments company we must ensure the payments flowing through our system around the world are in compliance with laws and regulations. We understand that the way in which we are complying to these rules can be frustrating in some cases and we’ve made significant changes in North America to adapt to the unique needs of crowd funding campaigns. We are currently working to roll these improvements out around the world.”

One of the game’s three designers, Seon King released the following statement before the issues were resolved:

“We appreciate irony as much as the next person, but PayPal refusing to provide funds legitimately raised to complete a game until after the game is released isn’t just beyond ridiculous – it potentially derails the game development”.

He went on to allege that the banking service was refusing to discuss the issue with Nyu Media, requesting that the devs “contact them closer to the release date next year” when they have some paid invoices for the game.

King said that his company’s track record is “rock solid” and that Nyu Media had already provided PayPal with all the “documents providing the bona fides of Nyu Media, the developer, and the campaign”.

This isn’t the first time PayPal have held up proceeds from IndieGoGo campaigns: Skullgirls developer Zero Lab Games was famously unable to pay staff while PayPal held up its funding.

Should the matter had not been resolved, Nyu Media planned to refund all PayPal contributions to the campaign and solicit those donations through another service, running the risk of not reaching the same funding target again, forcing the cancellation of stretch goals.

Original source: Kotaku.

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11 Comments

  1. braindead1981

    Isn’t PayPal supposed to just facilitate and process those payments? Or am I missing something? It’s like the postman not delivering your presents until after Christmas just because he can (although he wouldn’t be doing his job properly) and wants to be a dick…

    #1 12 months ago
  2. cartina

    http://notch.tumblr.com/post/1096322756/working-on-a-friday-update-crying-over-paypal
    http://www.vg247.com/2013/04/23/skullgirls-crowdfunding-stymied-by-paypal/

    Both related. Paypal always done this kind of shit. They hold the funds, after some bitching back and forth, they release the funds, but keeps a “fee” around 10%.

    Nothing new and it is actually in line with their policies for pre-orders and such.

    Doesn’t make it less stupid and PayPal should be more then happy they still haven’t been shut down.

    #2 12 months ago
  3. Llewelyn_MT

    One more reason not to use PayPal for anything.

    #3 12 months ago
  4. JP

    A whole 4 days after they do an interview saying they need to get better at dealing with crowdfunding – http://arstechnica.com/business/2013/09/how-can-i-stop-paypal-from-freezing-my-crowdfunding-campaign/

    Well done Paypal. *slow clap*

    #4 12 months ago
  5. TheBlackHole

    How is this even legal?

    #5 12 months ago
  6. Old MacDonald

    One thing I don’t understand is, if Paypal has these pre-order regulations in place, why is paying through Paypal even an option on any kind of crowdfunding site? It isn’t on Kickstarter, so yet another reason to use that I suppose.

    #6 12 months ago
  7. TheBlackHole

    Is Star citizen using paypal for donations? Can’t wait to see that shitstorm begin.

    PP
    “We’re withholding $10 million dollars until you deliver the game”

    SC
    “erm… we’ve raised $20 million and we’ll need it all”

    PP
    “You better get crowdfunding then”

    SC
    “…eh?”

    #7 12 months ago
  8. dotfaust

    Gah! This is so stupid! I pledged my 10 dollars to help them finish the game, not so it can be dangled over their heads like damn carrot on a stick! I had no idea paypal was pulling these kind of shenanigans.

    #8 12 months ago
  9. AngryConsumer

    paypal are scabs and robbers, i never gonna use that shit.

    #9 12 months ago
  10. Cobra951

    As I’ve said before, Paypal is a criminal enterprise. Their crimes may somehow be legal, but that legality baffles me. It’s clearly wrongdoing. How can they withhold funds that belong to someone else? I know *why* they do it. They do it because THEY CAN. The more money they keep for their own use, the more they enrich themselves. That they’re doing so by robbing others of their money makes no difference when such heinous actions in some way pass legal muster.

    As long as they CAN do it, they WILL do it. These thieves need to be brought to justice, even if laws have to change to make it happen.

    #10 12 months ago
  11. Stephany Nunneley

    PayPal sent us a statement. Post has been updated to reflect the resolution.

    #11 12 months ago

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