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Money laundry means disguising illicit gains as lawful gains to hide the fact that you are breaking the law. In the Backpage case, the law that were broken pertained to child prostitution. Moving legal money around, no matter how complex, is not money laundry by itself.

The intention here is to circumvent the high chargeback rate of porn by disguising the purchase from the customer's bank, thus making it harder for him to issue the chargeback for an amount you have legally charged. That does not sound like an illegal action, but a breach of contract with the payment processor.




You are mistaken, and I've mostly responded upwards in the thread, but I wanted to add that the fraud's purpose is not to prevent chargebacks, it's to be able to receive money at all. Mainstream processors refuse to work with these guys because the fraud rate is so high, so they try to get their transactions approved (in any way possible) by disguising them. It is still very easy for any customer to chargeback a credit card charge.




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