Circumventing payment processors bending the knee to puritanical pressure is why God must have created bitcoin.
This thread has some good talk about it (https://news.ycombinator.com/item?id=47841149)
EDIT: I’m kind of sensitive to getting downvotes on a comment. Do the downvoters think this is a high quality article giving a good amount of context for the upstream policy choices? Do the downvoters take me for supporting some kind of decision like this? Do you think I’m just wrong on my understanding of why these policies are made? I’d really encourage you to look into it. Google or chat something like “why do payment processors ban adult content”.
Because it cost more to check that my CC wasn't stolen when I buy NSFW?
Or because there are more chargeback?
See how that works? If you dont like a behavior, dont do the behavior.
Dont you tell US what you want us to do.
This is called freedom.
They keep the payment fee, and they charge you a large chargeback fee. They don't lose or spend any money out of their own pocket on it.
If you have high fraud rates, they charge you a higher per payment fee.
Our company is both a payment network and a merchant, depending on specific product lines and such. We spend a lot of time preventing credit card fraud on our merchant lines of business, and very little on our payment line of business, because chargebacks cost us nothing there.
As designed.
I can't believe people keep perpetuating this lie, that they very obviously haven't thought critically about. It's so frustrating. It's like everyone just repeating gormlessly that the sky is actually purple when they can just look at it.
As explained elsewhere, this is a problem for the merchants, not for the platforms. The platforms don't lose money on this, and may in fact profit off of it.
Also this is why we should work to increase circulation of cryptocurrency. No stupid religious restrictions and stupid political sanctions.
Also why PornHub and OnlyFans are immune to religious lobby?
There's no actual evidence in the article that payment processors made them do it. They actually banned pornography long before this. They just updated the terms to clarify what counted as pornography.
> Also this is why we should work to increase circulation of cryptocurrency.
Cryptocurrency actually does avoid this problem because it doesn't allow chargebacks and the consumer has to foot the bill for transaction fees. Those are also the reasons why consumers don't like it.
> Also why PornHub and OnlyFans are immune to religious lobby?
They're not? They would have the same high risk accounts and include the higher fees into their business model.
Stripe _says_ they will handle these type of payments, but more often than not, within roughly a year of implementation you'll get an email from them kicking you off their platform, no matter how vigilant you were, or even if the things you were selling were more rated R than rated X. Source: my own insider knowledge along with colleagues in the space.
(Note that OnlyFans did get attacked in this same way before and briefly attempted to pivot to non-adult content before rapidly backpedaling after a user and creator uproar.)
You can have chargebacks in crypto if the payment is scripted to allow chargebacks. It would be up to the merchant and the buyer on whether or not to allow that, and who would mediate the dispute.
I think the reasons consumers don't like cryptocurrency has more to do with its overwhelming use for and exposure to scams, fraud, money-laundering, etc. than with no chargeback support or having to foot the transaction fees...
Theoretically, they could just split out "explicit" vs "normal" risk categories, but there's two top problems there: 1) it's just fundamentally a smaller-yet-way-more-annoying category than the rest of their payments, and 2) tons of your partners (banks etc etc) have blanket-banned for all of the above reasons.
So... here we are.
And there's just so many more things you can pay for. Physical stuff. Art prints and comics. Game mods. Art commissions. Services that aren't just video platforms (social media, hookup apps and so on). There's so much more stuff out there that's not child-friendly, and I bet that all of these categories have different amounts of financial risk atrached to them.
So why are all these different things grouped under the widest net, with the worst offenders being used as reason to deny processing to the entire market segment? Why did they ban all explicit content and not just porn site subscriptions or whatever else has the most chargebacks?
This comment thread is confidently trying to steer around this topic, but there is ideology mixed up in this, and probably to a way larger extent than you think.
This has always been a lie. I work preventing stolen credit cards from being used to buy gift cards.
Payment networks do not at all care about cutting you off for having chargeback heavy flow. They demonstrate their value to customers by supporting those chargebacks, they make $20 for every single one. If you have a large fraction of your payments causing chargebacks, they just charge you more money for the privilege. They won't cut you off unless you are obviously not doing anything to prevent credit card fraud or are party to the actual fraud itself. Payment networks don't even do that much to prevent fraud, because it doesn't hurt their business at all. Everyone knows you are protected when you use a credit card, and frequent demonstrations help that.
This has always come down to some fundamentalist "Christian" groups who keep spending big bucks suing anyone they can find who sells anything adult, and suing Visa and Mastercard as accessories. They are trying to ban porn, toys, adult content in general.
https://en.wikipedia.org/wiki/National_Center_on_Sexual_Expl...
This is the group that drove Pornhub to delete 9/10ths of their library.
Compare their efforts to the australian group who got so much flak for demanding steam remove violently rapey games and yet are fine with steam still being full of sexually explicit games that aren't about simulating abuse.
I can't understand why people believe this lie. If it were true, you would not be able to buy a gift card over the internet at all.
No I can't. Can you elaborate?
Because this is too specific for your understanding of the reasons to be true. They'd just blanket ban anything NSFW.
Sorry, but that's just bullshit. This is nothing more than your standard pseudogovernmental meddling in the "just build your own financial infrastructure" vein, and it's coming from foreign countries this time rather than the US itself (it currently has an administration less hostile to business).
https://www.bu.edu/articles/2023/suing-visa-to-shut-down-por... https://www.cnbc.com/2022/08/04/visa-suspends-card-payments-...
And yes, naturally this is backed by the Christian right. They've tried to spin/redefine the whole anti-porn thing as anti-child trafficking, as that has more support.
Seriously though, I think the fix here is not who controls it but legislation that codifies when this type of payment deplatforming can (or cannot) be done. Make some carve-outs for smaller processors (e.g. if your church group wants to set up a pr0n-free version of Stripe, go to town)
If you're a processor (payment or otherwise), you have to be absolutely sure there's no CP or non-consensual content on there. The penalty for even one thing to slip through is damning, and they're under extreme pressure to be the gatekeeper on all of this.
That means you have to manually review everything. That means paying someone to sit through and review all sorts of... questionable... media. A lot of work was shipping this off to overseas review farms. And we occasionally hear reports on how degrading and traumatizing this kind of work can be.
So for Visa, Mastercard, et al I think they are more or less chomping at the bit to just be completely out of this genre of businesses.
Some amount of adult comment is CSAM, or otherwise broadly disfavored. Some companies (Pornhub, OnlyFans) are willing to specialize in discriminating between “regular” adult content and the objectionable stuff, and they have payment processors similarly willing to specialize.
Some of that specialization involves being willing to take on political exposure. Mainstream payment processors are unusually exposed to risks like “being dragged in front of Congress” — there are a lot of reasons a politician might want to put pressure on a general financial infrastructure provider. So reducing obvious ways to get embarrassingly dragged in front of Congress is rational.
The problem is that activists who are laser focused on eliminating adult content watch intently for the first thing they can use against the company, and even if it violates their ToS something problematic is eventually bound to get through review. Rather than reporting it to the platform, activists then threaten the platform through intermediaries and force them to change their policies to drop adult content.
1) non-consensual or illegal (CP) content could come with expensive lawsuits.
2) Adult content has higher abuse (charge-backs, fraud, etc..).
They're not. I highly recommend the podcast "Hot Money: who rules porn". It's about the internet "revolution" of porn, when it went from DVD to the Internet. It's very interesting and sometimes hilarious.
4 fingers are OK. 5 fingers are NOT. The payment card cartel has an unofficial list of what is and isn't OK to show. It becomes a different act when all fingers are involved and they don't want that. I kid you not.
https://www.pushkin.fm/podcasts/hot-money/hot-money-who-rule...
In order to increase circulation of cryptocurrencies, you must make it easy and secure to deal in them. The way you do that is through... political sanctions in the form of financial and banking regulations.
Which are set by bodies vulnerable to religious pressures.
Short answer — there are lots of chargebacks and (sometimes) fraud around this content. Vanilla payment processors don’t like high rates of chargebacks and fraud.
> Also why PornHub and OnlyFans are immune to religious lobby?
They use a high-risk payment processor that takes a much higher cut of each sale (basically as insurance).
Opposition to such measures often hinges on false notions of freedom and the purpose of law. One function of law is to teach men to be free in the genuine sense, not as being able to do what thou wilt, but to be able to do what you ought.
There's a reason pornography has a history as an instrument of wartime psyops.
Like freedom from want and freedom from fear, Mr. Roosevelt?
The driving force is mostly a group of nonprofits and lobbying groups that are backed by right-wing, mostly-but-not-exclusively evangelicals.
Over the last decade, they have successfully laundered their views into the mainstream to the point where many people don't realize how influential they have been in writing all of these laws and policies and driving them across the finish line.
None of this is hidden knowledge - they've been acting out in the open for years, but people have an aversion to acknowledging it, because it's an uncomfortable truth which triggers a great deal of cognitive dissonance.
It's not easy money. It's reputationally risky money, that requires EXPENSIVE moderation, defensive litigation potentially fraught with fraud and chargebacks. Follow the money.
The non-government organisations involved in those cases are either proxies that always support local politicians, or have been deliberately created to create opaque decision making source that is outside of legal or public scrutiny. As always, the ones who decide morals for the masses are the ones you can not even criticise. Unfortunately, even if you don't have such activist group, there is always a queue of well-intentioned citizens full of dreams of getting in bed with any politician, and having their 15 minutes of fame.
So one thing is to show who is the boss. Just as a slave owner who randomly kills a couple of slaves just to make others tremble in fear, US reminds others who sets the rules of international trade. The pretext is not that important.
Another is to keep public in check. A citizen who says “Sonic and Mario BDSM Chamber game? Wow, so unbelievable”, and shrugs it off is a bad citizen. Good citizens must react as prescribed to any real or imagined horror stories, be attracted to sexual content in media (or outraged by it, which is the same thing), and always fear the dangers that exist “outside”. The more they do that, the more they ignore the real world around them, and rely on imaginary protections the system and its members provide.
As political entertainers are interested in keeping the status quo that benefits all of them, they always choose the lowest common denominator views on such topics. It does not matter what you really think about it, it matters that you do the trick when the command is given: gasp with others, murmur with others, shake your head with others, decide that it must be stopped by existing powers with others (and therefore let them decide for you).
PornHub was famously not immune to the same thing. Porn industry attacked free streaming sites to remove everything that was not actively copyrighted, and directly provided by industry. It probably cost them a lot to organise that through politicians, journalists, activists — and payment processors. Ironically, the rhetoric you might call religious was used to help porn business.
Info on its conservative lobbyist leader, their extreme views and hypocrisies: https://www.reddit.com/r/Steam/s/1FHaaaIs6T
As for why they do it?
Because conservative Christian lobbying is a lucrative grift: https://youtu.be/ms26YefUNds?si=3KLCj1RALES3aKDT
The owner runs a for-profit speaking engagement business alongside the registered charity. Many such people get into right wing politics without necessarily holding real conviction for the causes because it’s an easy way to get lots of money.
It’s kind of like the market for drill music - fans love the stories of gang violence and aura of lawlessness, so artists will exaggerate and pretend or even foment actual violence so the market buys the product they’re looking for regardless of authenticity. The fans form the artists because of what they finance. The result is a product of the fandom more than a reflection of the artists true selves, though it relies on preserving the deception of extreme authenticity.
A similar American lobbyist group is Moms for Liberty. They’re funded by a billionaire and groups like the Heritage Foundation, the ones behind Project 2025.
FOSTA-SESTA, the law that increased liability for platforms facilitating porn, passed 388-25 in the House and 97-2 in the Senate back in 2018. Every senate Progressive except one voted yes, including Sanders, Warren, Kamala Harris (AG against Backpage), Booker, etc. Anti-trafficking feminist groups like NOW backed that legislation, or were silent on it. Similarly, media outlets were either quiet or in vocal support, i.e., the NYTimes 2020 attack on Pornhub.
If you go through and click all the links and hunt down the source, the final source underlying it all is a comic author who says, without quoting anything, or any proof, that that's the reason why. Just a random guy saying that Stripe made them ban it, without any evidence.
I'm the King of England. There, I guess I "am" the King of England, because all it takes is for a random person to make a statement and it becomes true.
Consider this excellent article on debanking by an author who works at Stripe: https://www.bitsaboutmoney.com/archive/debanking-and-debunki...
The machine grinds on regardless if we agree with it or not.
Sir/Ma'am, this is HN, we dont actually read the articles here. WE just look at the title and get outraged
Maybe I'm trippin.
I think kickstarter is gonna have (or maybe already has?) a scam problem due to the rise of AI.
I've contributed to about 7 campaigns; only one didn't work out. But the person running it actually refunded me fully (about 200$) after 3 or 4 years of very occasional updates.
https://raineyreitman.com/2024/06/11/transaction-denied-my-u...
Mastercard/Visa/Banks don't want legal liability.
You're right that these are connected to FOSTA/SESTA, but you're missing the actual connection.
FOSTA/SESTA were not "well-intentioned". They were the product of lobbying from explicitly religious, anti-sex, anti-pornography groups. Those same groups are behind recent campaigns to require providing government ID to access pornography, to allow attorneys general to prosecute LGBTQ content, and to ban pornography from platforms like Steam and Itch.io.
FOSTA/SESTA have worked exactly as they were intended to! The intention was to make it harder to conduct sex work legally and safely, and they accomplished that goal!
These policies have little to do with FOSTA/SESTA themselves, in that the text of those laws has no bearing here. But those bills were the first big, national victory of these campaigns, and they used that momentum to raise absurd amounts of money to lobby for the other laws mentioned above, and to target financial infrastructure as an easy point of leverage to accomplish their goal of banning pornography across the Internet.
For evidence see, well, all the other institutions of the US federal government.
Edit: forgot to say, Mir cards used to work in a few other countries, for example, Turkey and Armenia. But eventually the US government pressured the banks in those countries to stop accepting Mir, because apparently that would somehow help defeat Putin or something.
This way, there is always a threat of businesses deciding not to do business with you by unaccountable forces.
Visa/Mastercard vs the government itself is bordering on a distinction without a difference.
From the perspective of the average business or person they're both wholly unaccountable.
If you're Kickstarter or some Megacorp, well then it probably just depends which you have more friends in high places.
tbh there's a case to be made that the government should run a payment processor as critical infrastructure
I only disagree with the "the" on the GP, they are para-governamental.
What US companies are afraid of more is PR and regulatory risk. Zelle has no chargeback process, but still bans the sale of automatic knives, fireworks, ammo, and firearm parts. Venmo bans a nebulous category of "products that present a risk to consumer safety". You better not be buying any vintage lawn darts for your collection.
The chargeback rate on knives or firearm optics is probably not any higher than on anything else. What's higher is the likelihood of a headline along the lines of "kid dead / injured because of Paypal". And so, we end up with digital payment processors as the arbiters of morality.
Kickstarter already banned pornographic content before this. They expanded the rules to include more specifics. That's it. That's the story. Everything else is speculation and anger-mongering.
> While the previous version of the page simply prohibited “Pornographic content,” it now contains some oddly specific restrictions, including, but not limited to, “implied sex acts,” “MILF/DILF” content, “implied nudity,” and anything featuring “female nipples/areolas, genitalia,” and “anuses.” Good heavens, they’ve even banned “buttocks.”
The article quotes some speculation from some other blog that is trying to link this to Elon Musk and Peter Thiel for maximum anger points:
> Why? According to a report by The Daily Cartoonist, Kickstarter may be under pressure from its payment processor, Stripe, which Palantir Chairman Peter Thiel and X proprietor Elon Musk partially own. Kickstarter and Stripe did not immediately respond to a request for comment.
However Stripe actually does service adult content sites. It just falls into a category of high-risk merchants that also includes travel sites, cryptocurrency, gambling, tobacco, and other categories where the chargeback rates are statistically much higher. They will service those sites, but you might have higher fees to compensate for the higher chargeback rates that come with those categories
Source https://stripe.com/ie/resources/more/high-risk-merchant-acco...
The adult category is a very touchy one. When one get's an OK to connect to the credit card network he has to go a very arduous procedure of being approved by a CC provider. Because the worst thing that can happen from a viewpoint of a payment provider is a return. At the exact moment when someone asks for a return on a credit card, the provider is the one who is responsible and has to revert the transaction instantly.
(That's why Banks are sooooo lengthy and pushy about you filing those claims. They don't want you to initiate the return.)
Now, if you sell weed, do gambling, sell crypto, do porn or anything else of that sort, you have to pay extra for your card processing, to offset all potential problems for the payment provider.
Problems? What problems? Well, a LOT of transactions for adult content and toys happen on stolen cards. And those cards are not stolen per say. It's just a kid taking parent's CC card, or your SO is using it without your knowledge. Once found, this results in a lot of scandals and quarreling. Followed by a return request. And those returns are very annoying to that. The service "technically" was delivered. But now you are loosing it. And the payments provider does not want to be hit by that.
In fact, this is not a news in the first place. When Kickstarter sign their agreement with the card provider, they specifically stated categories of services they will be responsible for. And I guess porn was not one of them. So what? Now the provider saw a chargeback because of the adult content and did the most standard thing: Went back to the documents, noted the fact that Kickstarter not suppose to be doing adult content, and went back to Kickstarter to tell them to stop.
I handle 2-3 of such cases per month. It's called routine.
But now, enter the world of entertainment. A quick search shows one that Kotaku is a subsidiary of a larger conglamerate G/O Media (Gizmodo - Onion). A private equity company that bought out a bunch of entertainment websites like Gizmodo, Lifehacker and Kotaku. It started in 2019, and went basically bankrupt by 2023. They have been selling their websites to different holdings. In 2025 Kotaku was sold to a Swiss conclamerate that put it into a line of similar useless media resources. And if you check the author - you'll find out that he is a well-established gaming reporter. With little knowledge of the money business.
And then this article makes it to HN.
> But he was friendly with Mastercard’s then-CEO Ajay Banga, whom he had met through a mutual friend. Ackman texted Banga, providing a link to Kristof’s story with his tweet: “Amex, VISA and MasterCard should immediately withhold payments or withdraw until this is fixed. PayPal has already done so.” (Ackman was unaware that American Express already did not allow its card to be used on adult sites.)
> Banga quickly wrote back: “We’re on it.”
> Then things began to move. Within days, Mastercard announced it had “instructed the financial institutions that connect the site to our network to terminate acceptance” of [PH] charges, saying it had found evidence of illegal activity and was continuing to investigate.
EDIT: The antisemitism in some replies is disgusting and I reject it entirely. This post is about a specific, publicly reported action by one individual, not about any religious or ethnic group. Any attempt to turn this into conspiracy-mongering is bigotry, not analysis. I don’t want that associated with my comment.
Exodus Cry - https://en.wikipedia.org/wiki/Exodus_Cry explicit christian thinktank
Collective Shout - https://en.wikipedia.org/wiki/Collective_Shout not explicitly christian, but mirrors Exodus Cry almost verbatim
Going down the rabbit hole of Financial Censorship also shows a few other bad actor sin this space. https://en.wikipedia.org/wiki/Financial_censorship
FiLiA - https://en.wikipedia.org/wiki/FiLiA hard conservative feminist group, hates transgender
Morality in Media (renamed to "National Center on Sexual Exploitation" to deceive as federal org) - Intersection of Conservatives and Christians, wanting to ban anything their bronze age beliefs indicate are bad.
CATiW - https://en.wikipedia.org/wiki/Coalition_Against_Trafficking_... , another far-conservative anti-trans hate group.
So close
Your characterisation is way off the mark. FiLiA is an organisation run by left-wing feminists and their conferences cover a wide range of issues affecting women and girls.
https://stripe.com/ie/resources/more/high-risk-merchant-acco...
it's really asinine how stripe decides what is and what isn't allowed.
(see also: "oh, you linked your stripe to ko-fi? banned forever!" happened to me, it'll happen to you!)
They are also the groups behind the closure of big porn sites like XTube, the short-lived purge of adult content on OnlyFans (one of the few battles they lost), and the scourge of age verification bills that are sweeping the US, UK, and Europe.
The goal with age verification laws is not to protect minors or fight CSAM (as much as they pretend it is) - it's to make it expensive and difficult to legally serve content that they disapprove of, producing a chilling effect. Note that the content they disapprove of is not limited to pornography, which is why many of these bills have such vague language that can apply to other things like information on abortion, or LGBTQ+ themed material. This is not an accident; the supporters of these policies are quite open about their intention.
This is a common myth. The concerted effort that we've seen over the last 5-10 years in particular is the direct consequence of intense lobbying from a handful of groups that are openly backed by or aligned with right-wing religious groups, especially (but not exclusively) evangelicals.
In case you have any doubts about whether "morality" is their motivation, one of the groups was literally called "Morality in Media", before renaming to the more official-sounding National Center on Sexual Exploitation. Despite the new name, they actually don't care very much about "sexual exploitation" as most reasonable people would define the term (such as child abuse) but instead consider all sex work to be "exploitation" and aim to ban legal sex work.
The real chargeback rate is actually incredibly low. Probably way less than Amazon or anyone selling physical objects.
The chargeback rates might just be higher than the payment processors feel like dealing with.
I’m more than fine with more transactions leaving the traditional credit card system.
Giving Visa a 3% surcharge on the entire economy never felt right
That's why porn stars can't have checking accounts (and then become targets of property theft and violent crime - because the criminals know they are unbankable, so they have piles of cash around.)
Fun fact: the most "Christian" religious states have the highest rates of teen pregnancy, rape, divorce, murder, property crime, etc. Plus christian religious leaders seem to be attracted to child sexual abuse like Elmo is to piles of cocaine.
I feel like maybe one should focus on cleaning up one's own moral house and lead by example before screeching to everyone else that they're going to hell for jerking off to a picture of a naked man or woman on the interwebs.
The religious right knows many of their views are unpopular so they don't act in the open. They find underhanded ways to force their views onto us. Abortion bans wouldn't survive a simple up and down vote in almost any state, yet abortion bans are happening across the country.
The religious right really has their claws into this administration, and the far right has a much larger say in things than it seems like they would based on their proportional representation in the population. Things like gerrymandering and closed primaries don't help.
Difference is in fees and licenses. Payment processors that process high risk payments (adult industry, gambling, etc...) have higher fees and need license from governing body (usually a national bank in country where the payment processor is registered). So if you process high risk payments as low risk you will get a fine from governing body and you risk to lose your license. And if you don't have a license for high risk payments you cannot process them.
I don't work there anymore, but I heard they lost SEPA license a couple of years ago because of risky transactions.
Now I am not sure if Visa and Master are forcing payment providers to give up high risk transactions or if they are forcing them to classify all transactions as low/high risk.
It could be through vouchers sold at gas stations, bank transfers, QR payment apps, etc. But CC has by far the best penetration and most alternatives are weak at best.
If you do figure out the alternative payment or distribution strategy immune to pressure through CC, then it changes targets to legal systems and NGOs. You'd want couples of congresspeople or to push back on that front.
The way the policies work, they would either have to use the latter processor for all transactions (which would be prohibitively expensive) or relegate all "adult" content to a completely separate company and domain, which would be a huge pain and expense to operate for something that constitutes a relatively small fraction of their business.
They see all LGBT stuff as porn. Which is why the current moral panic in US/UK involves transgender people. Once trans people are outlawed, the rest of the rainbow will be rounded up and eliminated.
This is why Pornhub is always targeted under the pretense of "fighting CSAM" when in reality Facebook is orders of magnitude worse in terms of the prevalence of CSAM and the distribution.
Exodus Cry, et. al. don't target Facebook, because they don't actually care about fighting CSAM - they are simply weaponizing that rhetoric in order to attack the the thing they really want to end (pornography, and more broadly, anything "immoral" according to a right-wing, evangelical definition of that word).
Sex-work exclusionary. Like Trump's bill https://en.wikipedia.org/wiki/FOSTA-SESTA .
Trans-exclusionary. Like American Republicans' various anti-trans bills https://translegislation.com/
Encourages woman-based (trans-exclusive) laws that give them more "rights", rather than equal rights for everyone. We see this in countless US republican trans bills that protect "women", but not men.
Encourages separation of genders. Like how Mike Pence wouldnt be alone in a room with a woman other than his wife/daughter.
Sure, they're not a broad spectrum political org, but the areas where they speak in, is full of TERF and SWERF hatred. If it looks like a duck, and quacks like a duck.....
At least in the USA (where I live), the Christians cant seem to follow their own rules. Instead, they seek to force their rules on everyone by subverting government by aligning with republicans and creating voting blocs. Ive even had christians in my local community publicly tell people (in service) to vote for trump going back to 2015, and later in 2022-2023. -- back when it was expressly illegal to do such as a church.
I even had christian pastors publicly attack my MiL (she was a director for a local nonprofit). Called her the antichrist and a bunch of other shit. that spillover even hit my SO when they were doing in-home healthcare. Was chased out of their house with a crucifix wall hanging.
Of course, trump's IRS now made church-based political endorsement legal. https://www.usatoday.com/story/news/politics/2025/07/11/irs-...
If they wanted to practice their own rules, I dont care. When they shift to forcing *me* to follow their rules, yeah, I'll be hostile.
Leaving the only other electronic payment methods as ACH (which is not ideal for most businesses), Paypal, and I don’t know what else.
Note that I'm not saying we should ban that. I'm just saying that if the 'unbearably high chargeback' excuse had merit, they would've been precision-striking just those categories of sales, instead of opting to nuke everything that humans find sexual, regardless of medium, type of product/service, artistic merit, popularity and so on.
Visa can run away with your unclaimed payouts (if forced to do so by law enforcement for example). This doesn't have to be true in crypto; you can set things up so that the third party can either release the money to the payee or send it back to the payer, without giving them the capability to send it to some arbitrary address of their choosing.
There are orders of magnitude more CSAM on other platforms, such as Facebook. As explained elsewhere in the comments, Pornhub was targeted by evangelical, anti-pornography groups which weaponized claims of CSAM against Pornhub for their own political purposes, despite the fact that Pornhub had vanishingly few instances even compared to other pornography platforms, let alone non-pornography platforms (like Facebook).
I am not sure if CSAM is the only reason for this group - notice they specifically listed MILF/DILF, that doesn't involve or imply CSAM in any way.
One needs education to explain that, for example, hentai manga has little to do with realism, that character drawing styles have a long history that is only partially intertwined with lolicon wave started in the early 1980s (and that they even cross-pollinated with female-oriented manga along the way), or that the strict indecency ban (again, thanks to US) had created it in the first place (so little girls were actually used to portray proverbial 900 year old vampiresses because you could not draw those vampiresses that way).
Then we can see that any kind of image, even highly realistic, even photographs, is a deliberate set of choices made by the author, not a 1:1 copy of of “reality”. Then we can switch to the viewer side, and study how the contents of people's head define what they see, and how they react.
Here's a party trick. Japanese entertainment industry still produces a significant amount of media with young women in bikini. Weekly Young Magazine (one of the biggest manga periodicals) keeps placing idols on the front cover to this day. Ask someone about it, and listen to the expected comments about “questionable”, “seedy”, and “exploitative” nature of those (which are obviously true to a large extent). Then compare that to Western media products, global pop stars and such, and enjoy the excuses about it being completely different, “suitable for the whole family”, and “playing by the rules”.
Also we're not arguing the language here or its adherence to the specific reality, but the blunt tool the laws are.
Putting other countries laws aside, I believe that digitally manipulating the image of the real child in that way results in the production of the actual CSAM and as such is a federal crime.
And back to my previous comment - actual children are involved, so the abuse actually happens. If you doubt it, feel free to read up about women who experienced their own AI-manipulated pictures to make them appear naked - I don't think you deny the actual harm here.
In terms of generation (harming pixels), I think the idea of the lawmakers is to criminalise similar ones as well ("indistinguishable from a real child") to offer some protections to real children.
You are either misreading those bills or confusing them with other similar bills which did target banking infrastructure (and which thankfully did not pass).
FOSTA/SESTA did increase liability for platforms, but the applicability of those laws to this specific case is minimal to nonexistent.
There is so much that has changed! If you think FOSTA/SESTA are the only thing that have changed, you're clearly not up to date on this topic!
> Banks didn't do this before 2018 as aggressively
Because after FOSTA/SESTA passed in 2018, the groups that lobbied for it started targeting financial infrastructure as the front in their war. This is not some secret; they've been very open about it and their lobbying efforts have been extremely well-documented.
>How is an adult chargeback ratio calculated?
Divide the number of chargebacks in a month by the total transactions in the same month. The result is the chargeback ratio. Visa and Mastercard both use this formula, with Visa weighting dispute count and dollar volume together under VAMP.
https://sensapay.com/resources/blog/adult-industry-chargebac...
It seems like that sector has 3-4X the disputes and maybe even fraud, independent of your own business practices or success.
To get around this, some sites use less obvious or vague names, but that creates its own category of chargebacks.
Maybe your rates are high because of the risk pool you are in.
But why would fraud be more prevalent specifically in the adult content industry than the average over all the industries? Do criminals prefer working in porn than elsewhere? Why? Or do chargebacks simply occur more often due to spouses disputing a charge in an attempt to save face in front of their partner?
It helps that a lot of people have no respect for the people producing the content; they'll happily consume it, but they refuse to acknowledge any work that goes into it or that people should be compensated for what they've created.
The stats I've seen actually did put the charge back rate is high compared to other industries.
What does seem like a scam though is, especially in the digital space, a refund is basically free. The merchant could agree in the case of any charge back the credit card company can just take it back, they won't argue, just take it. They'd even agree to pay the transaction fee.
But you can't, so you get the 20% fee, and you still get the money clawed back from you.
The problem is the VIRP/BRAM requirements push adult content into using only a handful of acquiring banks, and thus there is insufficient competition to get them to lower rates since where else you gonna go?
No, it's not. People have been charged, but their convictions overturned. E.g: https://capcentral.org/case_summaries/people-v-gerber/
> As the United States Supreme Court found in Ashcroft v. Free Speech Coalition (2002) 535 U.S. 234, 250-251, “[v]irtual child pornography is not ‘intrinsically related’ to the sexual abuse of children . . .. ” The nexus between such images and exploitation of children is “contingent and indirect.” The images created by Gerber is akin to virtual child pornography since the superimposing of a childs head on adult pornographic images does not involve the sexual exploitation of an actual child. Thus, mere possession of them is protected under the First Amendment.
People should be pre-conditioned to lose their marbles at the mere idea of someone being naked, and rush to the saviours in power as a consequence. It is not universal, there are many places where people are not trained by hyper-sexualised culture to treat children as sexual objects first and foremost (of course, it's always because of some “other” maniacs “everywhere”). That does not mean that those places are “better” or “safer”, just not that crazy.
In simple terms, viewers taught how to feel by the Jerry Springer Show (and by that I mean all “respectable” globalised media together, the difference is superficial) put on the cork hats, and dictate how everyone else should act. All while being 100% sure they are “progressive”, unlike those “savages”.
Obviously, certain people really like that they can keep any international hosting company, or business in general, on a leash, and they like it to be that way forever, so it's essential that you keep supporting the hypocrisy.
This should be the top article. It's only an hour old and has hundreds up upvotes.
The payments industry is strong arming free speech to promote religious fundamentalism.
There is no such thing as vice content being higher risk. That's a diversion topic. Fewer and fewer people are hiding porn payments from their wives.
We don't need the religious oligarchy dictating how you can live.
Edit: it's back. Halfway down the page. A few minutes ago it was not on the home page at all and I had to search for it.
U.S. customers pretty much JUST got chips in our cards... but issuers "forgot" to implement the PIN part.
Zero sympathy for this scumbag monopoly.
Feminist groups are responsible for the last few waves of censorship. Collective Shout was specifically named in the itch.io/Steam campaigns and the previous PornHub campaigns were waged by a litany of left-wing media sources hyperfocused on particular types of content (mostly rape, hypnosis and incest). Jewish groups applied similar pressure when people were uploading antisemitic porn.
"Religious" groups haven't been relevant to censorship discussions since the early 90s.
> Fewer and fewer people are hiding porn payments from their wives.
Normalizing leaving a paper trail of extramarital misdeeds is the sort of opsec disinformation you're supposed to use on enemies. Don't lie to your allies.
Anyone that wants out of their marriage that badly can just as easily come out as bisexual or propose redefinition of their marriage to embrace interracial cuckolding. Women love having such salacious leverage in divorce court.
> There is no such thing as vice content being higher risk. That's a diversion topic.
Such a diversion that there is an entire cottage industry of guides for prospective e-thots to mitigate chargeback risks?
Every commercial site I've ever seen engages in fraudulent billing or dark patterns. "$1 for a week, then only $24.99...billed weekly."
The chargeback rates are real when an industry exists to part horny fools from their money.
The founder of Collective Shout previously successfully lobbied against mifepristone and opposed changes to legislation requiring pro-life pregnancy-counseling services to disclose their affiliations in their advertising.
In 2004, she founded the anti-abortion lobby Women's Forum Australia.
You might inform Peter Thiel.
https://www.theguardian.com/us-news/2025/oct/10/peter-thiel-...
August 2021: OnlyFans CEO Blames Porn Ban on 'Unfair Actions' of Banks, Media: https://www.pcmag.com/news/onlyfans-ceo-blames-porn-ban-on-u...
April 2024: Japanese Adult content platform DLsite disables Visa/Mastercard payment after attempt to outsmart credit card companies: https://automaton-media.com/en/news/dlsite-disables-visa-mas...
It's not a sudden new thing. The financial theory seems to explain all the facts.
Literally all three of the examples you list were the direct result of lobbying from groups like Exodus Cry and Morality in Media. These campaigns had been in the works for years, and were well-known to people in the industry, who had been sounding the alarm for years.
It's maddening that people not only refuse to listen before the actions come down, but also still refuse to connect the dots even after they happen.
It is actually a relatively new thing, and it is from religious groups lobbying and gaining more political power.
They do act out in the open! That's why it's so maddening to see how pervasive the belief that this isn't a push from right-wing groups is. They are extremely open about their goals and about their ideological alignment, and they have been at literally every step in the process.
They're telegraphing every single move in real-time. But for some reason, people just don't really want to believe it.
It turns out, the best way to get away with a heinous agenda is not to hide it, but to be completely open and direct about it. If you tell people exactly what they want and it's horrific enough, they will refuse to believe it's true, because nobody would be that cartoonishly villainous, right?
The sex industry isn't the only area where that principle works, although (like with many "technologies") it was one of the first where it was successfully applied.
Often times to bank successfully you need large stagnant balances that are semi-frozen, or meaningful collateral.
This becomes problematic through payment provider platforms which other platforms build upon: it's not straightforward to manage these relationships through so many layers of abstractions. It's easier just to ban the industry.
I don't know the specifics of Kickstarter, but I've seen this happen countless times, so it's not difficult to connect the dots.
No, it has nothing to do with chargebacks. It's not even presented that way in their policies when they ban it. They consider it a "brand risk", which is completely different.
I also remember a story from someone I worked with in the 90s. At that time there were adverts in the back of newspapers for VHS tapes, very cheap. It would say "Get these 8 HOT VHS tapes for $4.99 inc shipping." People would call up and order on their credit card. The reality was the company would only send out a handful of these packages and then claim to be out-of-stock, then they would mail a refund check out to everyone else. The check would be from BIG TITTY BUSTY WHORES LLC or something. Literally nobody would cash the check.
There hasn't been sufficient reporting on all the lobbying and back-room dealing.
The banking industry shrieks about fraud and chargebacks yet gyms, which are basically the scummiest retail businesses on the planet aside from payday lenders, are allowed to use the ACH system and get direct access to money, not credit - that is a royal pain in the ass to revoke?
So much so that my state has an entire set of laws devoted toward curtailing the gym industry's various shitty cancellation policies? I believe they're even prohibited from requiring ACH payment - they must offer other options.
And what about all the local newspapers that make it impossible to cancel? Or all the made-for-TV product companies?
> Published by Bible Society Australia, Eternity is a national media platform for Christians, designed to encourage, equip and inspire them by revealing what God is doing in our nation and beyond.
There's CashApp / Venmo / Zelle, previously Paypal, for P2P transfers (paying your friend for a half of the pizza you both just ate), but that's largely an internet phenomenon. There are wire transfers, but those are expensive and largely for big-ticket items you don't buy that often, think cars or houses, not TVs. There are ACH transfers, which is how wages and bills often work. The fun part of ACH is that the person executing the transfer doesn't have to be the account owner, so businesses can just transfer bill payments from your account to theirs. And then there are the famous checks, which work when no other option is available.
Non-purchase person-to-business transaction are largely done via credit card, sometimes by check or ACH. Explicitly instructing your bank to send a transfer to an account number provided by the business, either through a form or through a "quick transfer" UI, is very rare on that side of the pond.
Where did I say all? Lol
There has been tons of reporting on this in the industry. It is not hidden. The war on sex work is extremely well-documented, as is the explicit shift in tactics to targeting financial infrastructure as a tactic.
See how your logic makes zero sense?
> Also I think it is weird that when someone steals a bank card, they use it to buy adult games instead of buying an iPhone or MacBook and shipping it to the third world country.
iPhone or MacBook purchases are expensive enough to trigger fraud detection reliably. A $19.99 adult content purchase less likely to.
It's not just stolen credit cards, though. Adult content purchases have another problem where purchasers often deny having made the purchase when their significant other finds it on the credit card statement. Shaggy's "It wasn't me" defense.
Ridiculous. People who consume adult content could at least behave like adults.
It's a math problem: If a credit card processor takes 3% of the purchase price and the average purchase is small like a $10 item or a $5 monthly commitment, it doesn't take many disputes to blow up their business model. Disputes are costly because you have to pay humans to deal with paperwork and phone calls.
Combined with prevalence of the suspiciously well standardized "because porn users and gamers chargeback Steam purchases way too often" canned responses, I think it's just an excuse, if not "the" excuse somewhere - like the basis for using incorrect data for internal risk modeling or something like that.
Meanwhile other industries like travel have crazy high chargeback rates. This is because it is notorious for a no refund policy / locking customers into purchases months in advance... and then people just chargeback instead of accepting a consumer hostile no refund policy. So travel ends up having high chargebacks... and yet has minimal trouble getting processing.
Nope, not true. They're #2 on Stripe's high risk business list, after porn:
https://stripe.com/resources/more/high-risk-merchant-account...
If this problem were as pervasive as people keep saying it is, it would put the merchants out of business long before it would have any noticeable impact on the card brands (Visa, Mastercard) who are typically the ones actually pushing bans like these[0]. Even if the merchant is successful in winning the chargeback, they are the ones who have to pay the fees for it, which means that any business with a predictable and consistently high enough chargeback rate will just stop collecting payments long before the upstream providers care.
A lot of people here don't actually understand how payment processing, risk underwriting, and chargebacks work - which is fair, because it's an arcane area of knowledge that most people don't interact with! But it means that a lot of things which sound like simple and easy explanations are actually completely off base and nonsensical.
[0] I do not have knowledge of the Kickstarter situation specifically, and the article is light on primary-source details, so I am explicitly not commenting on this specific case.
If it’s not a moral issue, then the rules should be simple and easily communicable. Examples: Comply with the law of your jurisdiction. Keep your chargeback rates below x%. Instead, payment processors intentionally refuse to enforce consistent rules across platforms. Not the behavior of an economically-motivated, entirely rational agent.
[1] https://journals.sagepub.com/doi/10.1177/13634607241305579
Second, agreed, if this was primarily about chargeback rates, there'd be no differentiation between disallowing things like hypnosis, (fictional) non-con, BDSM, etc. over vanilla sexual material. Instead it seems to be a mixture of pressure by (primarily religious, though some feminist) anti-porn activists, negative media portrayals (e.g. Kristof's PornHub article in the NYT), and understandable fear of lawsuits resulting from hosting actual illegal material (Visa/Pornhub case in California).
It’s a little strange to complain about no one being responsive to you when you’ve summarily dismissed every comment in this thread.
They charge you a large fee for every chargeback. They get the full purchase price of the transaction back without any effort. It's automatic. Meanwhile your merchant fee per transaction is directly tied to how many chargebacks you produce.
Chargebacks do not cost the payment network any money at all. All cost is borne by the merchants. That's the whole point. That's why chargebacks are effective: Because the payment network is an all powerful authority in the matter and has no incentive to deny chargebacks.
If you believe $15 covers all of the human labor involved plus the cost of their management chain and employment, I wish I could be as optimistic as labor costs as you.
The counterargument here doesn't even make sense. You think payment processors are run by people with weird puritan takes on adult content? No, they're exactly the same nerds that work everywhere else in the industry. I'm sure someone will come up with some just-so story about how payment processors, and only payment processors, are suspectible to influence from religious radicals or whatever, but: special pleading is special pleading.
If the conversation is too boring and repetitive for you personally due to your long, long history as a commenter, you could always choose not to participate in it. That’s more or less what you’ve done here in any case, with the added efficiency of one fewer step.
This is what, past the thirtieth anniversary of Eternal September? I’d think you’ve had plenty of time to cope with the social phenomenon.
> I'm sure someone will come up with some just-so story about how payment processors, and only payment processors, are suspectible to influence from religious radicals or whatever, but: special pleading is special pleading.
A lot of that going around, huh. https://news.ycombinator.com/item?id=48129408