Indiegogo is a popular crowdfunding platform that allows individuals and organizations to gather financial support for their creative projects, innovative ideas, or charitable causes. Whether you are a filmmaker seeking funds for your next movie, an entrepreneur looking to bring a new product to market, or an activist raising money for a worthy cause, Indiegogo provides a platform to connect with potential backers.
If you’re new to crowdfunding or simply curious about how Indiegogo works, you might be wondering when your credit card will be charged after making a contribution to a campaign. This is an important concern, as it impacts your budgeting and financial planning. In this article, we will delve into the process of when Indiegogo charges your account, what happens if a campaign is unsuccessful, and how your payment information is protected.
Understanding these aspects will provide you with the clarity you need to navigate the Indiegogo crowdfunding experience with confidence and peace of mind.
Understanding Indiegogo Campaign Funding
Indiegogo operates on a model known as “flexible funding.” This means that even if a campaign does not reach its stated fundraising goal, the funds collected during the campaign will still be disbursed to the campaigner. This is different from an “all-or-nothing” model, where the campaigner only receives the funds if the goal is fully met.
This flexible funding model allows campaigners to access the funds raised and proceed with their projects, even if they fall short of their initial target. It gives creators the opportunity to make progress and bring their ideas to life, benefiting both them and their backers.
It’s important to note that with flexible funding, there is an inherent risk for backers. Since campaigns can receive funds even if the goal is not met, backers need to carefully consider the viability and credibility of the project before making a contribution. Conducting thorough research on the campaign, assessing the project’s feasibility, reading updates from the campaigner, and checking the comments section can help minimize any potential risks.
Additionally, Indiegogo offers a “Fixed Funding” option for campaigners who want to adopt the all-or-nothing model. In this case, if the campaign fails to reach its goal, the funds are returned to the backers, and the campaigner does not receive any money.
Before making a contribution, it’s essential to review the campaign’s funding model to understand whether it is flexible or fixed funding. This knowledge will help you make an informed decision and manage your expectations regarding the outcome of the campaign.
When is My Credit Card Charged?
After you make a contribution to an Indiegogo campaign, your credit card will be charged immediately. Indiegogo uses a secure payment processing system to ensure the safety of your financial information. The charge will appear on your credit card statement as soon as the transaction is completed, reflecting the amount you pledged to the campaign.
It’s important to note that Indiegogo operates in various currencies, so the charge on your credit card will be in the currency specified on the campaign page. If there is a difference in currency between your credit card and the campaign, your credit card company may apply a currency conversion fee or exchange rate.
Keep in mind that the charge on your credit card does not guarantee the success or fulfillment of the campaign. It simply reflects your contribution towards supporting the project or cause. The ultimate success of the campaign depends on reaching the campaign’s funding goal and the ability of the campaigner to execute the project as planned.
If the campaign you have contributed to is successful and meets its funding goal, the campaigner will receive the funds and proceed with their project. In such cases, your credit card charge represents your support and commitment towards the campaigner’s endeavor.
However, if the campaign is unsuccessful and does not reach its funding goal, the funds collected will still be disbursed to the campaigner. Indiegogo’s flexible funding model allows campaigners to utilize the funds raised, even if the initial target is not met. As a backer, you should be aware of this potential outcome and consider it when deciding whether to contribute.
Understanding when your credit card will be charged and the implications of a successful or unsuccessful campaign is crucial for managing your finances effectively. It enables you to contribute with confidence and stay informed throughout the crowdfunding journey.
What Happens if the Campaign is Unsuccessful?
In the unfortunate event that a campaign on Indiegogo does not meet its funding goal, there are certain implications for both the campaigner and the backers. Understanding what happens in such cases allows you to make informed decisions as a backer and manage your expectations.
If a campaign fails to reach its funding goal, Indiegogo’s flexible funding model comes into play. Unlike platforms that operate on an all-or-nothing basis, Indiegogo allows campaigners to keep the funds raised, regardless of whether the target was met or not. This means that even if the campaign falls short of its goal, the campaigner will still receive the funds and can utilize them towards their project or cause.
As a backer, you should be aware that if the campaign is unsuccessful, the outcome of the project may vary. The campaigner may need to make adjustments to their initial plans, scale down the project, or find alternative ways to accomplish their goals. The success of the campaign no longer solely depends on reaching the funding target, but rather on the campaigner’s ability to navigate the challenges and deliver on their promises with the funds available.
Indiegogo encourages campaigners to keep their backers informed throughout the process, providing transparency with project updates and timelines. As a backer, you can engage with the campaign’s community, ask questions, and voice any concerns you may have. This ensures open communication and allows you to stay connected to the progress of the campaign.
It’s important to note that even if a campaign fails to meet its funding goal, it does not necessarily mean that the project will not be completed or that the campaigner will not fulfill their promises. Many campaigns have found alternative sources of funding or adjusted their plans to move forward despite not reaching their initial targets.
Before contributing to a campaign, take the time to review the campaigner’s updates, previous work, and any indications of their dedication and commitment to their project. This will give you a better understanding of their ability to navigate challenges and deliver on their promises, regardless of the campaign’s success.
By being aware of the potential outcomes of an unsuccessful campaign and conducting due diligence before making a contribution, you can make informed decisions as a backer and support the projects and causes that resonate with you.
Understanding the Pre-Authorization Charge
When you make a contribution to an Indiegogo campaign, you may notice a pre-authorization charge on your credit card statement. This pre-authorization is a temporary hold placed on your credit card to verify its validity and ensure that sufficient funds are available for the transaction.
The pre-authorization charge is typically a small amount, often $1, that is not debited from your account but is held for a short period of time. Its purpose is to authenticate your credit card details and prevent fraudulent transactions.
It’s important to understand that the pre-authorization charge is separate from the actual contribution you make to the campaign. The full contribution amount will be charged to your credit card as a separate transaction, while the pre-authorization charge will be released or reversed within a few days, depending on your credit card provider.
The duration of the pre-authorization hold varies among credit card companies. Some may hold the funds for a few days, while others may hold them for up to a month. It’s advisable to check with your credit card provider to understand their specific policies regarding pre-authorization holds.
If you notice that the pre-authorization charge remains on your credit card statement for an extended period, or if it is charged to your account, it’s recommended to reach out to Indiegogo’s customer support for assistance. They will be able to address any concerns or issues related to the pre-authorization charge and provide further guidance.
While the pre-authorization charge may cause initial confusion or concern, it is a standard procedure to ensure the security and integrity of the transaction. It’s important to keep track of your credit card statements and familiarize yourself with your credit card provider’s policies regarding pre-authorization charges, helping you understand the different charges associated with your contributions on Indiegogo.
Can I Cancel or Change My Contribution Before Being Charged?
If you have made a contribution to an Indiegogo campaign but wish to cancel or change your contribution before being charged, it is essential to understand the options available to you.
Indiegogo allows backers to cancel or change their contributions as long as the campaign is still active and has not ended. Once a campaign ends, the funds are typically processed, and it becomes more challenging to make modifications to your contribution.
To cancel or change your contribution, follow these steps:
- Log in to your Indiegogo account and go to the campaign page for which you want to cancel or change your contribution.
- Click on the “Manage” button next to your contribution details.
- On the pop-up menu that appears, you will see options to either edit your contribution amount or cancel your contribution altogether.
- If you choose to change your contribution amount, enter the new desired amount and confirm the changes.
- If you decide to cancel your contribution, follow the prompts to complete the cancellation process.
It’s important to note that canceling or changing your contribution does not guarantee an immediate refund. The timing of refunds, if applicable, depends on the campaigner’s refund policy and the payment processing timeline. Indiegogo advises reaching out to the campaigner directly if you have any specific refund-related inquiries.
If you encounter any difficulties in canceling or changing your contribution, or if the campaign has already ended, it is recommended to contact Indiegogo’s customer support for assistance. They will be able to guide you through the process and address any concerns or issues you may have.
Before making a contribution to a campaign, it’s always a good practice to review the campaign details, updates, and terms and conditions. This will help you make an informed decision and minimize the need for canceling or changing your contribution later on.
By understanding the process of canceling or changing your contribution before being charged, you can have more control over your contributions and ensure that you are supporting the campaigns and projects that align with your interests and goals.
How Does Indiegogo Protect My Payment Information?
Indiegogo takes the security and protection of your payment information seriously. They implement various measures to ensure the safety and confidentiality of your financial data when you make contributions to campaigns.
Here are some key ways Indiegogo protects your payment information:
- Secure Payment Processing: Indiegogo uses industry-standard encryption technology to securely transmit your payment information to their payment processor. This ensures that your credit card details and personal information are encrypted and cannot be accessed by unauthorized parties.
- PCI Compliance: Indiegogo is certified as a Payment Card Industry Data Security Standard (PCI DSS) Level 1 Service Provider. This means they adhere to strict security standards and undergo regular audits to ensure the protection of payment card data.
- Tokenization: To further enhance security, Indiegogo employs tokenization, a process where sensitive payment information is replaced with randomly generated tokens. This ensures that your credit card information is not stored on Indiegogo’s servers, reducing the risk of unauthorized access.
- Verified Payment Processors: Indiegogo only works with reputable and trusted payment processors. These processors have their own stringent security protocols in place to safeguard your payment information.
- Account Protection: Indiegogo encourages users to set strong and unique passwords for their accounts. This helps prevent unauthorized access and protects your payment information from being compromised.
- Fraud Detection: Indiegogo utilizes advanced fraud detection systems and algorithms to identify and prevent fraudulent transactions. These systems analyze patterns, behaviors, and other data points to ensure the integrity of transactions on the platform.
It’s important to note that while Indiegogo takes significant measures to protect your payment information, it is crucial for you, as a user, to take appropriate precautions as well. This includes regularly monitoring your credit card statements, using unique passwords, and being cautious of phishing attempts or suspicious emails.
If you have any concerns or suspect any fraudulent activity related to your Indiegogo account or payment information, it is advisable to immediately contact Indiegogo’s customer support for assistance.
By implementing robust security measures and partnering with trusted payment processors, Indiegogo aims to provide a safe and secure environment for users to make contributions and support the campaigns that matter to them.
Understanding how Indiegogo charges your account and protects your payment information is essential for a smooth crowdfunding experience. By having clarity on these important aspects, you can confidently support campaigns and contribute to the projects or causes that resonate with you.
We’ve discussed that when you make a contribution to an Indiegogo campaign, your credit card is charged immediately, reflecting your support for the campaign. However, the success of the campaign depends on reaching the funding goal. Even if a campaign is unsuccessful, Indiegogo’s flexible funding model allows the campaigner to access the funds raised and proceed with their project.
It’s important to familiarize yourself with the pre-authorization charge, a temporary hold placed on your credit card to verify its validity. This charge is separate from your contribution and is typically released within a few days.
If you wish to cancel or change your contribution before being charged, Indiegogo allows you to do so as long as the campaign is still active. It’s advisable to review the campaign details and contact Indiegogo’s customer support if you encounter any difficulties.
Indiegogo prioritizes the protection of your payment information by employing secure payment processing, adhering to PCI compliance, using tokenization, and working with verified payment processors. However, it’s essential for you to take precautions such as setting strong passwords and regularly monitoring your credit card statements.
By understanding the process and safeguards in place, you can confidently navigate the Indiegogo crowdfunding platform, contribute to campaigns, and be part of the exciting ecosystem of innovation, creativity, and passion.