As noted by Mark Coker on the Smashwords blog, “PayPal Revises Policies to Allow Legal Fiction,” PayPal has worked with the ebook community to adjust their terms covering sales of erotica content.
This is about distributing legal fiction, and always has been. As stated in my previous post, it’s about money and the law. The difference between obscene and literary value sometimes becomes debatable, but it should be the responsibility of the retailers and community to determine.
I don’t blame credit card companies for trying protect themselves, or increase their revenue by taking advantage of sales of questionably obscene material, but it’s in everyone’s best interest to find a fair way for everyone to continue business. Ebook retailers risk may increase, but I believe most of them already take responsibility and work with the community like Smashwords has shown.