What can be done to loosen card companies' grip on this? It has been a constant problem now for decades.
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The simple fact is, Visa/MC don't want to deal with porn because the number of chargebacks and fraud from porn purchases is significant and a huge outlier compared to most other charges. Their crusade against processing charges for adult material isn't about purity, it's simply business.
This is part of a long-term plan to de facto ban lgbtq content without having to deal with first amendment protections. First have the payment processors ban explicit content, then have queer content categorized as explicit.