Lawrence sez: "Paypal is phasing out payment for adult items, including, oddly enough, those of parent company eBay. So, it's OK to auction the smut, but not to allow people to pay for the smut…"
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.
In the Discuss forum, BoingBoing reader "newton" wonders aloud if it's time for someone to launch PornPal. Link to Paypal notice.