Rising Payment Failures on Adult Sites: The Impact of Major Credit Card Companies’ Influence on Online Content

The conflict between expression and regulation is a perennial issue. However, in recent years, this dynamic has significantly shifted. It is no longer a matter of operating within rules set by authorities; rather, regulations are increasingly being shaped by broader societal influences. This trend is particularly pronounced in the realm of adult content, which is especially sensitive to changing times. 

A significant development in recent months has been the frequent news reports about adult content payments on e-commerce sites being blocked by major credit cards. Of the five major global card companies American Express, JCB, Diners Club, Visa, and MasterCard four, excluding Japan’s JCB, have become unusable for such transactions. Notably, in June of this year, Visa card payments were halted on FANZA, a major adult content e-commerce site affiliated with DMM, and as of July 10, the suspension remains in effect.

While not adult content-related, the situation has also affected non-adult services, such as Nico Nico Douga’s Nico Nico Premium membership. Since the end of last year, MasterCard payments have been suspended, and in 2024, payments via American Express, Diners Club, and Visa have also been discontinued.

Freelance journalist A, who has been covering adult culture for 10 years, comments on this issue.

“Until now, regulation of adult content by the government has been a constant, such as the ban on vinyl books in the 1980s, subsequent restrictions on adult videos, and even the AV Law, which also falls under regulation. Each of these had various issues, but what we face now is a completely different kind of regulation.”

 

Mr. B, an e-commerce site manager at a company with its own site, adds to A’s remarks:

 

“In the age of the internet, it’s not the government that controls culture and distribution, but the credit card companies. In Japan, Visa and MasterCard alone account for about 70% of the market share of international credit cards. This means these two companies control 70% of the money flow in domestic card transactions. If Visa and MasterCard are unavailable, alternatives such as domestic cards or electronic money payments must be used. However, these might also eventually face regulation.”

 

Why has the situation deteriorated to this point? Mr. C, a former AV director now running an independent video production company with nearly a billion yen in sales from doujin content, cites a lawsuit in the United States. 

 

“About four years ago, an article in The New York Times sparked significant criticism against the adult site Pornhub. The parent company of ‘Pornhub’ was sued for having videos of underage girls posted, and during the trial, the California Federal District Court held Visa partially responsible. The court referenced Visa’s processing of payments from Pornhub and pointed out that Visa had intentionally facilitated the monetization of child pornography. Considering the growing scrutiny of adult content by major international brands, I believe this incident was a catalyst for the start of such regulations.

 

While there is currently less stringent regulation on adult toys, the issue lies with the increasing restrictions on search terms. For instance, the banning of terms like uniform around May and June seemed excessive. This isn’t just a singular issue of increasing regulation on adult content; it’s part of a broader trend that could lead to restrictions on freedom of expression. Some politicians have voiced concerns about fighting these restrictions, but given that the opponent is a global credit card company, it’s unclear how to effectively combat this.”

 

Financial planner Mr. D, who is knowledgeable about credit card payments, reveals, “Surprisingly, European cards are less stringent about adult content compared to those in Japan.” However, when considering using overseas payment companies, Mr. D shakes his head and explains, “It’s not that simple.” 

 

“Even if payments can be processed, the transaction fees that e-commerce sites must pay to card companies are higher with European cards, making it impractical. In some cases, the fees can be three times higher than those for domestic cards. This leaves e-commerce sites with no profit.” 

What are the companies doing about this situation? Mr. B, previously mentioned: 

“Currently, JCB, a major domestic player, has not imposed notable restrictions on adult content. I hope they continue to support this. However, I personally fear that JCB might eventually follow the trend and impose restrictions as well. While there are sites that use alternative payment methods like PayPay and other e-money services, these too are likely to face regulations sooner or later.

What about Chinese card companies or e-money services? There have been rumors that Alibaba Group’s Alipay might enter the market, which offers some hope. However, Chinese companies actually have stricter regulations than Japan. Transactions can suddenly be halted by government orders. I don’t believe Chinese systems can be relied upon for adult content payments. Additionally, there’s the risk of fraud with Chinese systems. It is said that more than half of credit card fraud involves Chinese companies, making it a risky choice for payments. Realistically, it might be more practical to consider that card payments for adult content could become completely nonviable.”

 

How are people on the front lines of the industry dealing with reality? I asked OH, the head of the planning and development department at “DL.Getchu.com,” a major cosplay doujin AV sales site. 

 

“We also suddenly had our Visa, MasterCard, and JCB payments stopped on our sister site, ‘Gyutto.com.’ Since 70% of our revenue came from card payments, it was a moment of crisis for us. We managed to mitigate the losses during that period by shifting to other payment methods like bank transfers, ultimately keeping the loss to around 50%. Afterward, we were able to resume payments with MasterCard and JCB, and sales have since returned to previous levels.

 

Recently, we’ve also faced DDOS attacks, which involve flooding web servers with massive amounts of data to disrupt services. Although these attacks were not large-scale and manageable, having to deal with both regulation and such attacks has made this a very challenging time.”

 

Mr. OH reflects on future strategies:

 

“We’re hoping for the creation of specialized payment methods for adult content, such as dedicated cards or e-money. However, it’s challenging to anticipate widespread adoption. Practically, we need to adapt to regulations while focusing on current popular niches, such as underground idols and VTubers, and exploring emerging trends. Real-world events are also thriving, with attendance returning to pre-pandemic levels. It’s ironic, but there is potential in focusing on physical events.

 

It’s crucial to create our own content and build a dedicated fan base. By doing so, we can offer tailored payment solutions. We also want to support those who contribute to our content creation. It’s a tough time, but there’s financial potential. We’re open to collaborations with talented individuals, whether girls or boys. Reach out to us through platforms like X.” (Mr.OH)

 

While extreme sexual expression remains unacceptable, staying ahead of current developments and trends is essential for preserving what you value.