Visa and Mastercard will stop processing payments for the advertising arm of Pornhub's parent company after developments in a lawsuit relating to child pornography.
Last Friday, a federal judge in California denied Visa's motion to dismiss a lawsuit by a woman alleging that the card giant knowingly facilitated the distribution of child pornography on Pornhub.
In a statement, Visa CEO Al Kelly said the firm "condemns sex trafficking, sexual exploitation, and child sexual abuse. It is illegal, and Visa does not permit the use of our network for illegal activity."
However, the court decision has prompted Visa and Mastercard to suspend acceptance of payments for TrafficJunky, the advertising arm of Pornhub parent MindGeek.
The card giants stopped processing payments for Pornhub in late 2020 after a New York Times story claimed that the site hosted videos of child sexual assault. However, the court ruling raises questions about indirect funding.
Says a Mastercard statement: "We are directing financial institutions to suspend acceptance of our products at TrafficJunky.
"New facts from last week’s court ruling made us aware of advertising revenue outside of our view that appears to provide Pornhub with indirect funding."