Why and how do banks hold so much power over companies like OnlyFans? Can OnlyFans find different ways to process payments if the banks cause them issues again?

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Why and how do banks hold so much power over companies like OnlyFans? Can OnlyFans find different ways to process payments if the banks cause them issues again?

In: Economics

If a user tries to pay using a card from bank (or card company) that is blocking OnlyFans, then they won’t be able to pay… that’s the problem. It won’t affect ALL paymetns to OnlyFans, only those from users with cards from such banks – and if a major compnay like MasterCard says they won’t process them, that that will affect a large part of their user-base.

Without any access to credit/debit card payments, OF would have a very hard time maintaining any revenue. Recurring bank transfers aren’t something many users would want to set up, and there aren’t many other options available

It wasn’t the banks. It’s payment processors (like Visa and MasterCard, even PayPal).

If they refuse to work with a business, which is their right, then that company has a much more difficult time collecting the money they are due.

Likewise, customers always prefer convenience, so if using a service demands making a new account for some other service just to be able to buy something from someone else… that’s going to make them rethink things.

In the end, it’s bad for business if you cross a payment processor.

I’m sorry but I have Sarah Conner your question.

It was all a publicity stunt.

No one was threatening to take away anything from anybody.

Anyone processing payments for OF could be guilty of processing payments for illegal activities. This may include just simply sexual acts that are still banned in some places, but even worse there could be child exploitation, rape and other things on there and if it gets exposed then the payment processor(s) involved could be in deep trouble. Pornhub recently was forced to scrub all content that wasn’t produced by “verified partners”, which means most of the do-it-yourself sex workers for this exact same reason, all the CC companies refused to process payments if they didn’t.

If OFs doesn’t completely shut down sexual content, expect them to implement a similar “verified partner” program in the near future.