> I seem to recall some stories about porn websites having their accounts frozen and
> money confiscated because PayPal is run by Puritans and they disapprove of that sort
> of thing.
Not quite. There's more to it than that, but basically PayPal doesn't want to be used for any adult-related transactions because payment processors have to have a specific level of regulations and security.
PayPal does not meet those requirements, and doesn't want to do so, so instead they just issued a blanket ban on everything.
Not to mention, their services being used for adult stuff means the government will take a better look at what they do... and they really don't want to be monitored by anyone.
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