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The money is returned to the customer by the adult website — in a process called a “chargeback.” It causes additional transactions, processing time, and record-keeping.
As a result of all of those shenanigans, adult websites face annual fees of upwards of about 0 — as well as higher processing fees — from credit-card processors. And when Paypal found out there was NSFW content on Patreon, they made the move to classify the crowdfunding service as “high risk.” From Patreon: “Unfortunately, this is a common issue in the payments industry, both because payments for adult content are subject to a higher rate of chargebacks, and because of an aversion to the content itself among some payment processors.
After many long discussions we were able to convince Pay Pal, or more specifically their subsidiary Braintree, that Adult Content creators on Patreon are not a serious risk.
Our content policy, and the nature of subscription payments, means that Adult Content creators on Patreon are less risky than most creators making adult content.
Patreon’s announcement — in an e-mail to creators — that it will once again be able to offer its users to use Paypal to pledge to NSFW creators is a huge victory for the crowdfunding service.
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As a company we are not happy with this lack of transparency since it impacts the livelihoods of Adult Content creators.
We will continue to work towards more certainty around these issues, but for now we feel that the benefit of allowing Pay Pal payments for Adult Content creators outweighs any hypothetical risk that it may change in the future.”“We have changed the name of our NSFW flag to Adult Content.
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