I'm sure it's a fraud / charge-back thing.. If you want to run 'riskier' businesses then you need your own merchant account. Although I agree i'm sure there are a few relatively straight-laced buisnesses that unwittingly end up in that bucket!

It makes sense, still.. Smells like censorship, when they put it in writing like that.

It's not puritanism so much as risk management.

Spouse sees credit card charge for something sexual, questions it. Consumer is backed in do a corner. What do they do? Chargeback.