Valve confirms credit card companies pressured it to delist certain adult games

Why do payment processors do stuff like this? Is there some regulation that requires them to? I get that they don't want to process fraudulent transactions, but I'd think the response to a higher percentage of fraud from some industry would be to charge them more. It doesn't make sense to me why they would be concerned about the content of games, as long as everything is legal and the parties concerned aren't subject to sanctions.

Some of these games seem completely abhorrent, and probably illegal in more restrictive jurisdictions, but not the United States. And I've not seen any suggestion they're funding terrorism or something. So I'm perplexed.

If I remember correct from the hot money podcast https://www.ft.com/content/762e4648-06d7-4abd-8d1e-ccefb74b3... part of the problem for the credit card companies is figuring what are the boundaries of legality. Countries have very different laws. Things like representing homosexuality or age of consent are very different and credit cards feel that it is a risky business because of that.