Mastercard and other major card providers' stringent policies regarding adult content, including specific niches like "furry hentai," are primarily driven by the high incidence of chargebacks, according to a recent social media post by user kache. The tweet suggests that when unauthorized purchases for such content appear on statements, consumers frequently claim fraud or hacking, leading to chargeback requests.
"The actual reason mastercard and card providers don't allow pornography (including furry hentai) is because 100% of the time when someone's husband or kid gets caught paying for furry hentai on the statement, they say they were hacked and issue a chargeback," stated kache in the tweet.
In April 2021, Mastercard introduced updated merchant guidelines for adult content, which became effective in October 2021. These regulations mandate platforms to implement robust control measures, including monitoring, blocking, and removing non-compliant content. The rules also require platforms to obtain documented consent from all individuals depicted, verify their age and identity, and pre-screen all content before publication.
While these policies are often framed around preventing illegal content and ensuring consent, industry experts and reports indicate that financial risk, particularly chargebacks, plays a significant role. Dr. Val Webber, a postdoctoral researcher studying online platform regulations of the adult industry, noted that Mastercard's rules restrict "any Transaction that [...] in the sole discretion of [Mastercard], may damage the goodwill of [Mastercard] or reflect negatively on the [brand]." This broad clause allows card networks considerable discretion.
The adult entertainment industry is frequently classified as "high-risk" by payment processors due to factors including perceived reputational risk and historically higher chargeback rates. Gina, co-founder of PeepMe, a startup for creators, explained that payment processors often cite high customer chargeback rates as a reason for not banking the adult industry. However, Maggie MacDonald, a PhD researcher, questions the substantiation of these high chargeback claims with measurable data.
The impact of these policies extends beyond adult content, affecting various "high-risk" industries. Some businesses are exploring alternative payment solutions, such as crypto settlements, to circumvent traditional financial institutions' restrictions. These alternatives aim to mitigate issues like rolling reserves, fund freezes, and industry-specific surcharges often imposed due to perceived high chargeback potential.
