PayPal stops processing payments for "over a hundred thousand" Pornhub performers

Shawn Knight

TechSpot Staff
Staff member

Pornhub in a recent blog post said they are devastated by PayPal’s decision to stop payouts “to over a hundred thousand performers.”

Models that got paid via PayPal are being asked to select a new payment method and update their information ASAP. Those with pending payments for October should contact Pornhub directly to get the matter resolved.

The company said it is working around the clock to make sure all payouts are processed ASAP. Payments should start going out by the end of the week, we’re told.

A spokesperson for PayPal told Motherboard that after a review, they discovered Pornhub made “certain business payments through PayPal without seeking our permission.” The spokesperson added that they have taken action to stop such transactions from occurring.

Pornhub offers the option of direct deposit but this is a risky alternative as many banks won’t do business with people if they know money is coming from a frowned upon industry like adult entertainment. Cryptocurrency is another option that may gain a larger following thanks to the anonymity it affords.

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Evernessince

地獄らしい人間動物園
Technically speaking adult content is considered high risk. That's why you are usually charged more to processes payments. It seems instead of just raising rates for particular content, PayPal just wants to leave that market to other companies.
 

Danny101

TS Guru
Technically speaking adult content is considered high risk. That's why you are usually charged more to processes payments. It seems instead of just raising rates for particular content, PayPal just wants to leave that market to other companies.
High-risk? Does this mean I need to wear a hazmat to watch porn?
 

Burty117

TechSpot Chancellor
Technically speaking adult content is considered high risk.
Is it though? I mean, Porn clearly sells quite well and it's not like it's a dying industry or anything. I would have thought finacially at least, the Porn industry seems to be doing quite well? Or at least I haven't heard anything on grape vine of websites closing and porn stars turning to other work.
 

kapital98

TS Guru
Is it though? I mean, Porn clearly sells quite well and it's not like it's a dying industry or anything. I would have thought finacially at least, the Porn industry seems to be doing quite well? Or at least I haven't heard anything on grape vine of websites closing and porn stars turning to other work.
There is probably a good deal of money laundering going on and always the possibility someone will sue Paypal for facilitating human trafficking.

At least compared to buying a painting on Etsy, I'd say the risk of facilitating human trafficking is much higher with Pornhub. So is identify theft, etc...
 

Burty117

TechSpot Chancellor
There is probably a good deal of money laundering going on and always the possibility someone will sue Paypal for facilitating human trafficking.

At least compared to buying a painting on Etsy, I'd say the risk of facilitating human trafficking is much higher with Pornhub. So is identify theft, etc...
True, I was only thinking of money I guess and not legality :D
 

Evernessince

地獄らしい人間動物園
High-risk? Does this mean I need to wear a hazmat to watch porn?
Is it though? I mean, Porn clearly sells quite well and it's not like it's a dying industry or anything. I would have thought finacially at least, the Porn industry seems to be doing quite well? Or at least I haven't heard anything on grape vine of websites closing and porn stars turning to other work.
You guys misunderstand. For payment gateways and providers, porn has a high rate of chargeback, cancellations, and fraud. It's why paypal and many other popular payment processors prohibit digital pornographic content. Typically you have to use a high-risk payment processor like CCBill, EPOCH, ect. In addition, these companies charge anywhere from 8% to 15% of every transaction, much higher then paypal. Mind you, this does not apply to physical adult goods which are not considered high risk.

You can verify this by looking at the prohibted goods on any processor's / payment gateway website.

I don't know if that was the particular issue in this case given that PayPal in general has been on a crusade against adult content for some reason.
 
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ypsylon

TS Booster
I thought that PP didn't allowed any funding of XXX material for years and years. Especially in official capacity like an company or stuff like that. WTH?
 

Richard M

TS Booster
High-risk? Does this mean I need to wear a hazmat to watch porn?
No it mainly means that the charge back and fraud rates are much higher. The main reason payment processors charge more for some industries is that some industries cost more to process. Even if you are in a "safe" industry but have a high level of charge backs or fraud you can end up paying more or being dropped altogether.

Having said that Paypal has always been skittish when it comes to adult niches.
 

poohbear

TS Evangelist
Technically speaking adult content is considered high risk. That's why you are usually charged more to processes payments. It seems instead of just raising rates for particular content, PayPal just wants to leave that market to other companies.
how is it high risk? Please explain. It's been around forever and it certainly isn't illegal.
 

Evernessince

地獄らしい人間動物園
how is it high risk? Please explain. It's been around forever and it certainly isn't illegal.
You guys misunderstand. For payment gateways and providers, porn has a high rate of chargeback, cancellations, and fraud. It's why paypal and many other popular payment processors prohibit digital pornographic content. Typically you have to use a high-risk payment processor like CCBill, EPOCH, ect. In addition, these companies charge anywhere from 8% to 15% of every transaction, much higher then paypal. Mind you, this does not apply to physical adult goods which are not considered high risk.

You can verify this by looking at the prohibted goods on any processor's / payment gateway website.

I don't know if that was the particular issue in this case given that PayPal in general has been on a crusade against adult content for some reason.
 

captaincranky

TechSpot Addict
A friend of mine once claimed, "you can get all the porn you want on the web for free".

Which brings me to the obvious question, "how dirty does it have to be, for someone to be willing to pay for it"?

But, I know little to nothing of these goings on. Forgive me if I've misspoken.
 

Evernessince

地獄らしい人間動物園
A friend of mine once claimed, "you can get all the porn you want on the web for free".

Which brings me to the obvious question, "how dirty does it have to be, for someone to be willing to pay for it"?

But, I know little to nothing of these goings on. Forgive me if I've misspoken.
For the most part this is true. Still someone needs to support the people making the content.
 
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wizardB

TS Booster
Just another attempt by conservative religious nutjobs to try and dictate how people live their lives and spend their money.
You do realize that PayPal's owners are massive supporters of the Dems and have gone out of their way to block payments to GOP supporting sites, don't you? So instead of getting on your lefty high horse just look in the mirror and thank your santimonious self.
 
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Markoni35

TS Maniac
You do realize that PayPal's owners are massive supporters of the Dems and have gone out of their way to block payments to GOP supporting sites, don't you? So instead of getting on your lefty high horse just look in the mirror and thank your santimonious self.
Isn't it interesting that so called "democrats" are so called "liberals" but at the same time they don't like porn. I mean they don't like hetero porn. I bet they are totally supporting fag porn.
 

captaincranky

TechSpot Addict
Isn't it interesting that so called "democrats" are so called "liberals" but at the same time they don't like porn. I mean they don't like hetero porn. I bet they are totally supporting fag porn.
I know this post will cause the risk of this thread going political, (which you've obviously started).

But, the Republicans are starting massive "overturn Roe v. Wade", and trying to pass laws with outright abortion bans in many, many states. IMO, the "Republigoons" siding with the "right to life" crazies, is a far worse evil.

Why can't we have our guns, smoke weed, and allow our women to have the right to choose, all in the same President and party?

Oh wait, that would be a Utopian fantasy, sorry for bringing it up... :rolleyes: