Why it matters: Patreon's latest issues serve as a cautionary tale to creators about the perils of having all of your eggs in one basket. It also highlights the importance of having an emergency fund.

Patreon in December came under fire regarding plans to change its service fee structure. The pushback created such a stir that Patreon decided to scrap it entirely and offered an apology for overstepping its boundaries.

The latest issue to hit the subscription-based platform, however, appears far more damaging and is at least partially out of the company’s control.

As The Verge highlights, some creators have discovered that a portion of their July payments have been declined. Those who support creators on the platform are reporting the same issue, noting that their payments have been declined and marked as fraud by their banks.


Patreon addressed the matter Thursday on Twitter. The company said some of the issues were caused by external forces and others by their efforts to create a stable and global platform as they grow and invest in their capabilities. Patreon apologized for the frustration the matter has caused and said it is working with payment partners and continuing to retry payments.

Patreon has since e-mailed all patrons who had declined payments with information about the situation and steps they can take to make sure their payment is processed.

For creators that rely on the platform’s income to make their monthly bills or fund various projects, cuts can be quite scary. Cosplayer and streamer Ryuu Lavitz told The Verge that her payout was less than 50 percent of what was projected just a few days ago, adding that she’s also unable to withdraw what little money actually came through due to “suspicious activity.” As a result, she’ll be late on paying rent this month for the first time ever.