A UK-based programmer who develops adult games for Steam, using the Reddit handle Fit-Commercial-5681, found themselves in financial limbo after PayPal froze their account, which contained approximately £80,000. The funds, which represent earnings from game sales on Valve’s platform, are now stuck in payment processor purgatory while the developer faces looming tax obligations.
The programmer had been using PayPal as their primary payment method after being dropped by multiple traditional and digital banks. This practice, known as “debanking,” left them with few options for receiving their Steam earnings. When the substantial payout arrived, PayPal immediately limited the account and placed the entire amount on hold.
PayPal cited policy and risk concerns for the freeze but provided no detailed explanation to the developer. The company’s Acceptable Use Policy explicitly restricts “certain sexually oriented materials or services” unless specifically pre-approved. Adult content falls into what payment processors consider high-risk territory, alongside businesses prone to chargebacks and legal complications.
The timing couldn’t be worse. UK corporation tax obligations don’t pause just because funds are inaccessible. The developer has sought legal advice while attempting to navigate both PayPal’s appeals process and HMRC’s tax requirements. Under PayPal’s standard procedures, frozen funds can be held for up to 180 days—that’s six months of watching your own money sit untouchable behind digital glass.
Steam has allowed properly labeled adult content since 2018, requiring developers to comply with local laws and platform policies. The games must be clearly marked and placed behind age gates. While Steam typically pays developers through direct bank transfers, this developer’s banking troubles forced them to find alternative routes for their earnings.
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The situation highlights a growing tension between adult content creators and financial institutions. Payment processors like PayPal operate under strict guidelines from credit card networks like Visa and Mastercard, who have previously forced major policy changes at adult content platforms. These companies often view adult entertainment as too risky, regardless of its legality or the legitimacy of the business.
For now, the developer remains in limbo. PayPal hasn’t indicated whether they’ll release the funds to the account holder or attempt to refund them to the original payers. Meanwhile, the UK’s Financial Ombudsman Service stands as a potential escalation path if PayPal’s internal complaint process fails to resolve the issue. The developer might also negotiate a “Time to Pay” arrangement with HMRC while the funds remain frozen, though tax liability persists regardless of access to the money.
