Quoted from Trekkie1978:
I completely understand doing a pre-order with Jersey Jack, he's been in the business long enough to have full confidence in the game coming out.
Full confidence? I just choked on my frosted mini wheats!.
Don't forget Jack also lied his ass off when collecting money, when holding money and when he was trying to "stave off" a bank run on his own much delayed pin(s).
Jack DID do licensing right. He eventually shipped a pin. However, until he can actually sell one without requiring prepay money, I certainly wouldn't say they are out-of-the-woods yet.
Regardless of the company (Stern, JJP, PPS, Spooky, etc), (mis)using paypal for pre-payment is a BAD idea. Anyone who does it after this fiasco is foolish...