Earlier quoted context omitted.
This is nonsense. If you want us to believe this you need to show that Steam with erotic games is more of a risk than Steam without them. Comparing Steam with things like “adult merchants” like Onlyfans or a porn streaming service does not sound very appropriate.
It's not nonsense. I've hosted, moderated and managed sites that were only obliquely related to porn or gambling, and you wouldn't believe the level of rejection for running ads or getting payment processing that they are faced with. And I ran a casino for 4 years. I coded it and I ran it 24/7, and believe me, I did everything by the book. The CC companies do not give a shit as long as they make money. Chargebacks co…
2. I think the argument being made is that the credit card companies are not actually experiencing higher risk (from Steam). Not that they have any qualms about putting a business into a “high risk” classification.
In this case, I suppose the argument is that Steam is a large enough entity that they should be able to “self-insure”. If the US had a relatively open way to become a payment processor, the free market would take care of this. Unfortunately that isn’t the case and also is very unlikely to change.