PreApproved Payments

Hi, i am using PayPal PreApproved payments for my crowd funding website, where where project backers are only charged if the project is successfully backed (similar to kickstarter)

I am worried that a high rate of payments will fail when the PayPal API tries to collect the funds when a project is successful:

  • a backer might not have any funds in their PayPal account
  • a backer might close their account once the project is succssful (to intentionally stop payment)
  • a backer might remove / cancel their preapproved payment
  • etc…

There are a number of ways that the payment could fail which would mean that the project owner would not get the funds.

Can anyone suggest a way of tightening or securing preapproved payments?

Please note, that PayPal will only allow you to use PreApproved payments for a crowdfunding website.

Please also note that project owners need to be able to receive the funds from my site. Sometimes, these funds can be as small as $10 or up to $10,000 so we need to use PayPal to pay them as there is no other automated way of getting the funds to the project owner

you should have a look at high risk merchant account providers.