From Techcrunch: PayPal has decided to update its policy regarding erotica. Here's the link. And here's another link to PayPal's statement.
This part of PayPal's statement interests me:
“Instead of demanding that e-book publishers remove all books in a category, we will provide notice to the seller of the specific e-books, if any, that we believe violate our policy,” he notes. “We are working with e-book publishers on a process that will provide any affected site operator or author the opportunity to respond to and challenge a notice that an e-book violates the policy.” It says it has not shut down any accounts of e-book publishers as a result of this situation.
A few weeks ago one of my books was removed/banned because of harmless words in tag line, not actual "banned" content. I wrote several posts about it here. I wonder how many others had to deal with this. I have a feeling I wasn't the only one.
Mark Coker from smashwords said this:
“This is a big, bold move by PayPal. It represents a watershed decision that protects the rights of writers to write, publish and distribute legal fiction. It also protects the rights of readers to purchase and enjoy all fiction in the privacy of their own imagination. It clarifies and rationalizes the role of financial services providers and pulls them out of the business of censoring legal fiction.”
I agree with Mr. Coker. This is a huge move by PayPal. And it not only protects the rights of both writers and readers, it protects the rights of innocent people who get caught in the middle for no justifiable reason.
Please take the time to read the article I linked to in full. It's short and it's worth knowing all the facts. It's also interesting to see how PayPal updated their policy after Visa and MasterCard made public statments saying they had nothing to do with PayPal's original decision to censor.