Attached Link: Visa's Porn Crackdown

Due to some users from another site boycotting Paypal, I decided to see what the issue was about. For those that are not aware of the situation, it was explained to me that Paypal has a department that verifies business clients that use Paypal (as a means of receiving payment from customers)are following Paypal's Acceptible Use Policy (AUP). I'm not sure if they actively search for it or respond to complaints, but if such a site is found to contain items that violate the AUP, Paypal can lock the account. An agent would compile as recommendation and submit it to a supervisor in the department whoi in turn reviews the case. The supervisor makes the decision of limiting access to or locking out an account. Only under certain circumstances, such as child pornography, can a non-supervisory agent immediately lockout an account.

I contacted Paypal and spoke at length with a Customer Service Representative (CSR) who seemed knowledgeable about the issues surrounding changes in Paypals adult material policy. Here is a synopsis of the issues as I now understand them.

Visa
About a year ago, Visa decided to take a hard line with adult oriented sites using Visa as a method of payment. Adult oriented sites may include many aspects of the industry, but Visa was primarily focusing on pornographic web site. Visa implemented registration requirements and fee's on porn sites wishing to accept Visa as a means of payment. Visa is requiring any site selling anything defined as adult content to pay a 750$ fee and release vital company infomration allowing the use of Visa as a means of payment. This change in policy is due to the large number of charge backs Visa suffered from spouses denying the service and more recently a new sect seeking to defraud Visa while obtaining free services from these sites. The link is to an article called Visa's Porn Crackdown by Seth Lobove at Forbes.com

The Paypal CSR spent nearly an hour with me on the phone as we both tried to search for the Visa Policy. Neither of us could find it, but I did find a contact number within Visa that alluded to the topic. He found many references at Visa.com as did I, but nothing linking us to a document. I found a few references here and there through Google, yet nothing linking me to the policy. I will continue looking as time permits.

Paypal
Paypal has an independent department that oversees compliance to the Acceptable User Policy or AUP. This department responds to complaints about Paypal being associated with adult content. Agents have the ability to immediately lock a Paypal account, but the CSR I spoke with explained that hes only known that to happen in cases involving illegalities; i.e., child pornography.

Under normal circumstances a Paypal AUP agent would review a site based on a complaint or report of questionable circumstances. The agent provides a report and recommendation to a supervisor. A supervisor would them make a decision pertaining to the report. Initial action would include an email to the site under investigation explaining that the site contains questionable material, explanations of what the offending material is and a request to modify or remove said content from the site.

Generalities
Based on my conversations with the CSR, its my opinion that renderings having well defined genitalia, collectively meaning penis or vagina, will most likely be interpreted as a breach of Paypals AUP. My recommendation for those selling programs is to make sure any content illustrating the aforementioned body parts are either covered when using pictorial examples or reference the models as being anatomically correct in the product explanation. In any event, I would recommend that anyone looking to use a brokerage house for their wares check to see if there is any content requirements or rules.

Disclaimer: I am not an attorney nor do I claim any expertise in this area of law. My opinions and interpretation are based solely on the information provided me by others and/or as found in other sources.