+Violet Blue wrote up this article on ZD Net about indie publishers & PayPal.

"On Saturday February 18, PayPal began threatening indie book publishers and distributors with immediate deactivation of the businesses’ accounts if they did not remove books containing certain sexual themes – namely, specific sexual fantasies that PayPal does not approve of."

If you in any way publish your own content online and charge for its purchase via +PayPal – they could drop you as a merchant if they do not approve of the content of your book. They have already been in contact with a few major indie author sites. Some – out of fear of PayPal – jumped over a cliff removing all indie authors in one fell swoop from their listings.

"PayPal told indie e-book publishers and retailers – such as AllRomance, Smashwords, Excessica and Bookstrand – that if they didn’t remove the offending literature from their catalogs within a few days of notification, PayPal would close their accounts."

Technically Game of Thrones would not be elegible to be sold using PayPal as a merchant due to the sexual scenes between siblings in the book.

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PayPal Strong-Arms Indie Ebook Publishers Over Erotic Content | ZDNet
PayPal has forced its merchants that publish and distribute e-books to censor erotic literature.

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