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Posts: 2,222 | Thanked: 12,651 times | Joined on Mar 2010 @ SOL 3
#95
Originally Posted by wpwrak View Post
Hmm, as far as I understand PayPal's classification, there is "crowdfunding" (money used to finance - more or less - every step of the project, and the outcome of it all not being guaranteed), "pre-selling" (company has other sources for conducting its business, and sells additional items, which it is certain to deliver, given that the underlying effort is already covered by those other sources), plus presumably a number of other categories not relevant in this case.

According to this scheme, the Neo900 project would be very much "crowdfunding". As I understand it, it is PayPal considering us doing "pre-selling", which causes them to apply those restrictions.

Again, to my understanding, the principal difference is that crowdfunding is a "best effort", where all parties involved accept the possibility of failure, while any form of regular sales, which would include "pre-selling", considers failure to deliver in itself as a breach of contract.
[...]
Yes, that's exactly to the point. PayPal lets me know that they had to decide whether our project is crowdfunding or pre-sale (no other choices). And they decided to classify us as pre-sales which automatically ensues the reserve we are suffering from.
They base this decision on what they think is insufficient information about the crowdfunding nature of the project and the risks this implies.

So please everybody don't try to explain to PayPal how Neo900 project works or has worked so far, just let them know that you are aware about the risks since you a) have read the TOS and b) you understood them and you also understood from beginning that this is crowdfunding in the sense that PayPal sees the difference between crowdfunding and pre-sales. *)



There's yet another POV on this, which would be along the line that the "down payments" are a payment for already accomplished R&D and sourcing of some few components, so that we can use the funds we used for financing that can now be used again to do further sourcing and R&D.
But this POV is not the argumentation path we are currently following , and for you, our customers for now the only important thing is to let PP know you want the funds on our account to get unfreezed and you are aware of the risks and you waive any rights to roll back their payment for refund.*)

Please use wicket's very fine template above, and refrain from detrimental incorrect explanations of details about the internal working of the project - we already provided comprehensive and more precise data about all that to PayPal

*) In case you actually didn't understand that Neo900 is crowdfunding with risks, please let us know so we can refund your payment right away now
many thanks
jOERG
 

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