'but a lot of merchants are going to have trouble making enough of a profit to continue releasing items.'

That's a very accurate observation Fashionably_Late and it will definitely affect me in just the way you mentioned.

If the truth be fully known, I use the revenues from my 'adult' products to continue making the sets and clothing items I'd actually prefer to make - but as was already mentioned - sex sells and by a fairly wide margin.

BTW - I really don't know how much of this has to do with Paypal or Visa but I suspect that they are accounting for a very small portion of this policy change. Not that I don't think that Paypal sucks mind you! lol :)