Game Crowdfunding: Payment, Pledges, Refunds & Disputes

Game crowdfunding payment rules determine when your card is charged, what happens if a campaign fails, and how you can get a refund or file a dispute. In short, you are charged only when the campaign ends successfully (on most platforms), and refunds depend on the platform’s policy, the creator’s promises, and your payment method’s dispute process.

Formula

The calculator shows how much of your pledge goes to the creator after platform and payment processing fees. The formula is:

Creator receives = Pledge amount − (Pledge amount × (Platform fee % + Payment processing fee %) / 100)

• Pledge amount – the amount you commit in dollars (USD).
• Platform fee – the percentage the crowdfunding site charges (typically 5% on Kickstarter, 8% on Indiegogo, but varies).
• Payment processing fee – the percentage charged by the payment processor (often around 3% + fixed fee, but simplified here).

This is a simplified model – real fees may include a fixed per-transaction charge and regional taxes.

Worked Example

Using the default values: pledge = $100, platform fee = 5%, payment processing fee = 3%.

1. Total fee percentage = 5% + 3% = 8%
2. Total fee amount = $100 × 8% = $8
3. Creator receives = $100 − $8 = $92

The calculator shows $92.00 as the creator receives, with $5.00 platform fee and $3.00 payment fee.

How Game Crowdfunding Payments Work

When you back a game on a platform like Kickstarter or Indiegogo, you are not buying a product – you are making a pledge to support a project. The payment rules are designed to protect both backers and creators.

• All-or-nothing funding: On Kickstarter, if the campaign does not reach its goal, no one is charged. On Indiegogo, you can choose fixed funding (same rule) or flexible funding (you are charged even if the goal is missed).
• Charge timing: Your card is charged shortly after the campaign ends successfully, not when you click the pledge button. Some platforms may place a temporary authorization hold.
• Payment methods: Credit/debit cards, PayPal, and sometimes digital wallets are accepted. The processing fee is deducted from your pledge, not added on top.
• Add-ons and upgrades: If you increase your pledge later, the additional amount is charged at the same time as the original pledge.

Always read the campaign’s payment section – some projects use pre-order systems (like BackerKit) after the campaign, which have different rules.

Refund Policies: What You Need to Know

Refunds are not guaranteed in crowdfunding. The platform’s terms typically state that you are supporting a project, not purchasing a finished product. However, there are common scenarios:

• Failed campaign: You get a full refund automatically (all-or-nothing).
• Creator cancels: Usually a full refund, but it may take time to process.
• Creator offers refunds: Many creators allow refunds before the project ships, but it’s at their discretion.
• Delays or non-delivery: You are not automatically entitled to a refund. Platforms do not guarantee delivery.

Some creators use a “pledge manager” (like BackerKit) where you pay for shipping and add-ons later – those payments are often non-refundable once placed.

Disputes and Chargebacks

If you believe you were charged incorrectly or the project is a scam, you can file a dispute with your credit card company or PayPal. This is a chargeback – it reverses the transaction. However, this is a last resort and has risks:

• Time limits: Most card issuers allow disputes within 60-120 days of the charge. Since campaigns can take years to deliver, you may lose the right to dispute.
• Platform action: If you file a chargeback, the platform may ban you from backing future projects.
• Evidence: You need to show that the creator failed to deliver or misrepresented the project. Keep all communications.

PayPal disputes have a 180-day window. Always try to resolve directly with the creator first – it’s faster and less disruptive.

Common Problems and How to Avoid Them

Backers often run into issues that could be avoided with a little caution.

• Double charges: Sometimes a temporary hold and the actual charge look like two charges. Wait a few days – the hold should drop.
• Currency conversion fees: If the campaign is in a different currency, your bank may charge a conversion fee. Check before pledging.
• Scams: Look for creators with a track record, detailed updates, and realistic budgets. If a campaign promises too much for too little, be wary.
• Shipping costs: Many backers forget that shipping is not included in the pledge. Read the shipping section carefully.

To protect yourself, always use a credit card (not a debit card) – credit cards offer better dispute protection.

Comparing Platforms: Kickstarter vs. Indiegogo vs. Others

Not all crowdfunding platforms have the same rules.

• Kickstarter: All-or-nothing, 5% platform fee, strict project guidelines. Refunds are rare after a successful campaign.
• Indiegogo: Offers both fixed and flexible funding. Flexible funding means you are charged even if the goal isn’t met – higher risk.
• Fig (now defunct): Used to offer investment options, but it’s closed.
• Gamefound: A newer platform focused on board games, with a pre-order system that charges at the end of the campaign.

Read the platform’s terms of service – they all state that you are not buying a product, but supporting a project.

Safety Tips for Backers

To minimize risk, follow these guidelines:

• Research the creator: Look at their previous projects, social media, and reputation.
• Read the campaign fully: Understand the rewards, timelines, and risks.
• Set a budget: Only pledge what you can afford to lose – there’s no guarantee of delivery.
• Keep records: Save the campaign page, updates, and any emails.
• Be cautious with new creators: First-time creators are more likely to fail, but not always.

Remember, crowdfunding is not a store. You are taking a risk, but with careful research, you can support great games.

Frequently Asked Questions

When is my credit card charged?

Your card is charged only after the campaign ends successfully, typically within a few days. If the campaign fails (all-or-nothing), you are not charged.

Can I get a refund if the game is never delivered?

Not automatically. Crowdfunding platforms do not guarantee delivery. You must contact the creator, and if they don’t respond, you can try a chargeback with your card issuer, but time limits may apply.

What is the difference between fixed and flexible funding?

Fixed funding (Kickstarter) means the project must reach its goal to receive any money – you get a refund if it fails. Flexible funding (Indiegogo) means the creator keeps all funds raised, even if the goal is missed, and you are charged regardless.

How do I file a dispute with my credit card company?

Contact your card issuer directly (phone or online) within the dispute window (usually 60-120 days). Provide evidence of the charge and the failure to deliver. Be aware that the platform may ban you for chargebacks.

Are there any hidden fees when I pledge?

Yes, there may be currency conversion fees if the campaign is in another currency. Also, some creators charge shipping separately via a pledge manager, which is an additional cost.

Can I cancel my pledge before the campaign ends?

Yes, on most platforms you can cancel your pledge at any time before the campaign ends. After that, you are committed unless the creator offers refunds.

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in pledge | Pledge amount | $ | 100 | 1 | 10000
in fee_pct | Platform fee | % | 5 | 0 | 100
in payment_pct | Payment processing fee | % | 3 | 0 | 100
out creator_gets | Creator receives | $ | pledge - (pledge * (fee_pct + payment_pct) / 100) | 2
out platform_fee | Platform fee | $ | pledge * fee_pct / 100 | 2
out payment_fee | Payment processing fee | $ | pledge * payment_pct / 100 | 2