4 ms·

Banks have successfully and legally blacklisted pornographers for decades due to "reputational risk".

• vorpalhex 5y ago
  But pornography is a high chargeback/fraud sector so that is aligned with banks doing risk control. Ideally a bank would capitalize on the underserved market and find a way to manage the risk.
  • bastardoperator 5y ago
    Merchant banks already do exactly this. There is no shortage of banks working with the adult industry, just higher transaction fees and other stipulations.
  • xnyan 5y ago
    >aligned with banks doing risk control This goes beyond risk control. Insurance has had this figured out for a long time. You can model the risk of porn chargebacks and charge fees accordingly that cover the increased risk of chargeback. Bank behavior towards adult entertainment is a reflection of prevailing attitude of society in which we live, which is frequently quite opposed to sex work. It's not a question of banks demanding much higher feels for legal adult services, they don't want them.
    • danlugo92 5y ago
      > charge fees accordingly I think they can't do that.
  • agentdrtran 5y ago
    and they often don't, markets are not perfect rational actors