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There has been a recent crackdown on naughty games on steam and itch.io. The game platforms say the crackdown has come from payment processors. Payment processors have said they don't want their business associated with unsavory practices, and that adult products have higher charge back rates. Some people have blamed activist religious groups on aggressively lobbying the payment processors for this crackdown.
I mostly feel a sense of annoyance. My libertarian leanings have me feeling certain ways about all this.
The banks are not wrong on this point. The industry is rife with bad practices on the customer side - teenage boys using their dad's credit cards, dads telling mum that a teenage boy used dad's credit card, people paying (real and virtual) card thieves for stolen credit cards to protect their anonymity, people who just feel comfortable committing so-called "friendly fraud" (i.e. buying something and taking advantage of the pro-consumer bias in the chargeback process to avoid paying for it) against a pornographer in a way they wouldn't against any other website, real post-purchase regret. And it isn't immune to bad practices on the website side - particularly hard-to-cancel subscriptions. Also, from a bank perspective, the low barriers to entry attract the kind of business that will be surprised by this and go bust under a wave of chargebacks leaving their acquiring bank with a loss.
Most banks are not interested in providing payment processing to the online smut industry for sound commercial reasons - it is a specialised market niche for banks who are happy dealing with massive chargeback fraud and whose fees reflect this. I suspect the Venn diagram of "Banks Valve management are comfortable working on Steam payments with" and "Banks which want to bank smut" looks like a pair of spectacles.
"They have a lot of chargebacks" is unfalsifiable without a congressional investigation, so it's an easy excuse. And when we did get the congressional investigation--surprise, it turned out to be pressure from ideologues, not getting a lot of chargebacks.
You would have said, at the time, that Operation Chokepoint and the crypto sequel are just the payment processors fearing chargebacks. And you would have been wrong.
Also, I don't think Steam has a lot of chargebacks, because if you do they ban your entire account and every game you've ever purchased.
Note, none of this matters if what you mean by chargebacks is when you do it through the bank rather than the store itself.
Depends on what you count as a lot. I've done up to three refunds per month a few years ago and they all got refunded, I think at some point I went up to five and only then received a warning, but after taking a break, my account is fine, and I can still get refunds.
You're talking about Steam refunds. I'm talking about chargebacks. The oft-repeated argument is credit card companies hate porn because people get their rocks off and try to chargeback, or tell their wives it was fraud. But no, if you try to go around Steam support and charge back with the bank you're pretty much never interacting with Steam again.
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