I worked for a credit card processing center that handled porn sites before Paypal was around. And in that time, I dealt with many problem issues that came up. Chargebacks are very common in the porn industry because of several things. One is that people feel guilty about joining a porn site, so they charge back their cards saying it was fraudelent. Two is that they are so gunho to get to the porn from the teaser that they hit the Process Order button several times. Three is that people often are disappointed after they are "finished" that they want their money back and adult sites don't give refunds. The place I worked for finally had to drop adult sites because they were costing too much. Then Paypal came along and they must have made a deal with the devil, because to take credit cards for merchants that couldn't get a merchant account was unheard of in the industry. If Visa/Mastercard caught you doing that, at the time, you were dropped. Of course, the wide expanse of the internet has caused policies to change and markets to open wider. Paypal takes credit cards for everyone else. This means that they are bound by the chargebacks of everyone else. If they present too many chargebacks beyond what Visa/Mastercard is willing to tolerate, it's entirely possible they could lose their entire business. So, it's not really as puritan as it seems. If you get a chance, under their AUP, look at the entire list of items that they have banned for this. It isn't just adult material. I was surprised that you couldn't use Paypal to buy autographed photographs, even if it's Michael Moore (grin), the opposite of porn (grin). I do think they should take each on a case by case basis and have a chargeback percentage law in place rather than by content because a lot of sites like this one get shoved under the umbrella for what much more erotic sites do. The fines and freezing of accounts are illegal, so I don't know how they can do that, but they do. Paypal is certainly not innocent, but their restrictions are up to them unfortunately. Just as Renderosity has the option to take or not take them.