Im pretty sure they want to not be associated with the sale of those goods. In a lot of cases if they have anything between it they can use it as a defense. In the case of credit with the current backlash they can point out that absolutely none of the payments they have processed were used for these items. They can show proof because the transactions are all for credit and not for a specific good. Basically they don't want their name associated with it and if they have the protection of a middle man they get that. If someone demands of you what someone purchased you can say they bought that with our credit. They get to say they didn't facilitate the sale of that product.
Viewing post in New idea Itch credit.
not normally in meatspace, no. here online, they have more power.
these payment processor cannot deny the sale of a porno mag bought at a convenience store, for example.
they also have no issue with processing payments for strip clubs and "adult shops" in meatspace.
it is really /only/ online that they have so much power. i suspect that some portion of this stems from the fact we're dealing directly with the credit company, and not the intermediaries usually found in meatspace.
using my convenience store example, none of those have direct dealings with the credit companies, they all go through intermediaries like veriphone. even using your debit card goes through your bank instead of the credit company directly.