
Originally Posted by
KatyBoleyn
Because its "high risk".
"High risk" is anything that has a normally high rate of chargebacks or fraud. This includes firearms, gambling, drugs, porn, online tokens, crytpocurrency, certain "electronic goods and services", etc. You know, all the fun stuff.
PayPal's agreements with the credit card backers (primarily VISA and MasterCard) are only "low risk". This means they can do transactions and billing for vanilla businesses for a very low percent. It also means you can move money around to your friends for free or invoice for a low percent.
They do not have the "high risk" certification or rates. This means if VISA or MC thinks PayPal is processing high risk transactions, they can hit them with a fine or fee schedule for ALL their transactions. This would be disastrous to their business model. 1% becomes 10%. The breach of contract would be $100's of millions in fines.
For this reason, PayPal has a very keen interest in keeping high risk transactions and the people that do them off their system. Even if an e-wallet or pay service doesn't mention porn or cammodels, if they're not charging a percent or they have a lot of vanilla clients, they are not "high risk". You will be booted if caught.
Contrast that with a cam site that pays YOU via PayPal. This is perfectly ok. Payroll is a low risk transaction. Nobody in their right mind reverses their own paycheck.
If you want to charge for your Snapchat or cam shows, you need to have an agreement directly or indirectly with a "high risk" processor. This can include any cam site (they're all "high risk" processors), tailored billing like IWantClips or Indiebill, or you can open your own "high risk" account with a card processor like CCBill or Verotel.
Bookmarks