Planet Phone Sex - Article: Paypal Policy Changes

Planet Phone Sex - Article: Paypal Policy Changes

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Important Note Regarding PayPal's Mature Audiences Policy:

PayPal is in the process of phasing out the sale of any goods which fall under the terms of the Mature Audiences Policy, according to the following terms. As a result, all PayPal accounts must follow these guidelines:

Intangible Goods: If you have registered through PayPal's digital adult merchant process, you may continue using PayPal to process payments until May 12, 2003. If you have not registered through PayPal's digital adult merchant process, you may not use PayPal to process payments. "Intangible Goods" includes digital adult products and services, including online photos, streaming video and phone or other audio services.

Tangible Goods: You may continue to use PayPal to send or receive payments for tangible adult products and services until June 12, 2003.

After June 12, 2003, you may not use PayPal to send or receive payments for any "adult" or "sexually oriented" material, including tangible products such as magazines, DVDs and video cassettes. This includes items sold through eBay's Mature Audiences category.

How does PayPal define "adult" or "sexually oriented" material? "Adult" or "sexually-oriented" material includes, but is not limited to:

Any visual representation of human genitals presented in such a manner as to suggest sexual activity.

Any visual representation of any form of sexual intercourse involving humans

Any materials which require that individuals be eighteen (18) or older (depending on the jurisdiction) to view or purchase those materials

Any non-textual materials clearly designed to sexually arouse the viewer

Any items which, because of their nature or because of the item description, appear to be designed for use in sexual/adult activity

Any items which depict human sexual characteristics in a degrading fashion

Any item that portrays frontal nudity will be treated as "adult" material

Planet Notes: It seems logical that PayPal would be monitoring any transactions emanating from payment links on a site. If your site was in violation of the revised policy it makes sense that they would deactivate the account. It also makes sense that if someone owes you money that they can be directed to simply submit a payment to a PayPal registered email address without causing any problems. We have sought clarification from PayPal on this issue and will keep you posted.

Planet Update 5/6/03: Reports of account termination, limitation and seizure of funds. Our take is PayPal just became the beta version as a third party payment solution to the online adult industry. The banks probably forced it due to the amount of abuse and PayPal had no choice but to agree under pressure. The fact remains that it's a vhs world and the online adult industry has always been the cutting edge in development of this medium and generates the revenue that propels much today. P.S. Someone mentioned a service at... c2it.com and another service to check out at... anypay.com. Also refer to paypalwarning.com and paypal alternatives.

Planet Update 5/7/03: We have mutiple confirmations of a "nice and informative" PayPal representative in dealing with any specific account issues. With permission we reprint here that Lisa Mines is a Paypal Compliance Analyst that can be reached at 402-935-2275 or contacted by email to: Lmines@paypal.com

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