In My last blog entry; I talked about the dangers of using Paypal for adult-related transactions and the likely consequences of not heeding this advice.
I want to make it clear to those who dispute these facts - and they are indeed facts - that this advice is not based on hearsay. It's based on Paypal's terms & conditions as written on their website.
Paypal state as follows:
Physical Goods – PayPal allows U.S. only transactions for certain sexually oriented physical goods, such as videos, DVDs, magazines, or other products physically delivered to the customer. PayPal does not permit transactions for sexually oriented physical goods by users outside the U.S. To determine which types of physical goods to permit, PayPal considers these factors:
Other Prohibited Goods and Services – PayPal prohibits all account holders from buying or selling any sexually oriented goods or services involving minors or made to appear to involve minors, and any services for which the purpose is to facilitate meetings for sexually oriented activities. PayPal does not include sexual preferences or viewpoints as a factor to determine what this policy prohibits.
So what does the above mean? Well, let's break it down to the services Dommes including Findoms are likely to offer.
CLIPS & AUDIO FILES.
Many Dommes like to offer files such as clips to tease their subs and/or files featuring hypnosis or even simple messages to tease a sub further. These files will fall under the Digital Goods category.
CAM, PHONE & TEXT CHAT SESSIONS INCLUDING SKYPE, SNAPCHAT & KIK.
If you receive payment via Paypal for any online session using any of the above; you are again breaking their terms & conditions, because you are providing goods and services via digital means. This means that these sessions again fall under the Digital Goods category.
PHOTOS & TASKS.
Again; you are sending content via digital means, which means again, this falls under the Digital Goods category.
BUT WHAT ABOUT TRIBUTES?
Now, one could argue that based on what Paypal have said; it may not extend to tributes. Like many newbie Findoms; you could assume that a sub sending a tribute as a donation would be quite acceptable by the folks at Paypal...but you'd be wrong.
Since Paypal cracked down on transactions for adult-related services in 2003; citing high fraud rates; they actively began to watch out for those using their platform for this very purpose.
This means that there indeed, Paypal employees floating around social media & websites; seeking out those sex-workers who advertise that they accept Paypal as a payment method. This means that if on your twitter or instagram account; your have the word Paypal mentioned; their on to you and will take steps to lock your account - and when it comes to this particular breech; is a permanent lock - no more Paypal for you!
BUT I CAN TAKE PAYPAL ON THE QUIET, RIGHT?
Nope! All it takes is one disgruntled sub to report you to Paypal. It doesn't even have to be a sub who's got a grudge. It could be a troll who gets off on making life difficult for Findoms and takes great pleasure in reporting them to Paypal. This can and does happen. Think about those subs who have left bad feedback on cam sites, because they didn't get their own way. They will also make life difficult for you when it comes to receiving payment. Is it really worth losing ALL your money AND your account just because you thought you could bend the rules?
WHY DON'T THEY ALLOW ADULT-TRANSACTIONS?
Paypal don't have to give a reason why they don't allow adult-related transactions. It is simply their terms and you have to abide by them if you wish to use their services. Just like a sub has to abide by your terms, if he wishes to use your services. But there are many possible reasons why they have chosen to take this stance.
1. Adult-related business is considered to be high risk when it comes to banking. Many adult processors, including the ones you see on cam sites like AdultWork and Chaturbate; will have fairly high interest rates. In addition; those using them will have to jump through hoops to have an account with them.
A few years ago, adult payment processor PacNet was closed down by the US Government; due to allegations of fraud and money laundering. Those sites using PacNet found themselves stuck without a processor. This mean they couldn't pay their members until another processor was found. AdultWork alone, took several weeks to find one. During that time, they had a false start when the bank used as part of payment processing pulled out of the agreement; because they don't work with adult-related services. Many service providers ended up waiting up to a month to receive the monies they'd earned. Such is how difficult it is to find a payment-process in this business. Not only do you have find one which allows adult transactions; you have to find one which doesn't have a sky-high interest rate; which you would then have to pass on to your members.
2. As Paypal cited in 2003; there is a high risk of fraud when dealing with adult-related transactions, especially when it comes to digital goods. As if often the case in these circumstances; there is often no trail left when transactions take place, as is the case with the chosen processor of scam artists - Western Union. This means that if things go bad; it's not just you who is out of pocket, but so is Paypal. It's only right that they want to protect themselves from losing vast amounts of money due to fraud. Wouldn't you want to do the same?
3. Other criminal activities can fall under the adult-related transaction category. This includes money laundering, child porn, drugs, and various other criminal activities. If Paypal were to ignore this risk; they would be investigated by the authorities for facilitating such crimes - remember what happened to PacNet? Paypal don't want the same to happen to them.
4. Prevention of sex-trafficking is another possible reason for their stance on adult-related payments. As I've already mentioned; there is often no trail. This means criminal gangs trafficking men, women and children cannot be traced back. Sex-traffickers love it when they're under the radar - it means they can increase their activities. Paypal are only being responsible in ensuring they are not part of the sex-trafficking problem.
5. And of course there could be what is term as a "moral stance" on the issue. Simple prejudice against sex workers is always a possibility and something they may want no part of. We may not agree with it, but it is their choice. When they're handling your money; they have you by the short and curlies - you can't really argue with them.
6. While a payment processor may be adult friendly; the receiving and sending Bank may not, as was the case with Adultwork's first attempt to set up a new processor. The payment process means your money goes through several banking institutions as follows:
a.) Sender sends payment to processor.
b.) Processor sends payment to their bank.
c.) Bank sends to clearance centre of your bank.
d.) Clearance sends converted funds to your bank.
3.) Bank sends funds to your account.
At each stage; there are charges, which we talked about in point one. If any bank in this chain takes issue with adult-related finance; they will pull out of the chain. And the sender and indeed the processor has to go through the whole process of finding another adult-friendly bank. This can take weeks with the heavy paperwork and credit checks - and acceptance is not guaranteed.
In addition; Banks and financial services can change their terms at any point in time. This could be due to new government legislation, or an amendment due to economic climate. Think back to the financial crash of 2008 - many financial institutions went bust when the bottom fell out of the financial market. The crash had been coming for a very long time; because banks had been free and easy when it came to lending. Now banks are ensuring they protect themselves so they don't end up a victim of the next financial crash. And in these uncertain times, especially with Brexit; it could happen at any time.
To sum up; if you still insist on using Paypal, then you do so by your own risk. But don't attempt to dispute these facts. These are straight from Paypal themselves - and many other "vanilla" payment processors have the same stance. If your processor is part of Google, Paypal or Square - you can't use it. If you use it and your account is closed, then don't complain. It's not as if you haven't been warned, but by the companies themselves and those who know the situation.
There are low-cost adult-friendly means of receiving tributes out there - if you do your research and look for them. And you don't even need to do that. I've done it for you in My last blog entry. All you need to do is exercise a little common sense...