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^^always good to get confirmation, and yeah, they're ok with tangible adult goods, which is why peeps who sell adult videos as shippable DVDs on ebay can use paypal. Send the same video as a download and it's not ok.
I'd urge caution in contacting paypal about adult-related issues through one's own paypal account though. I've heard of a few cases where paypal froze accounts NOT used for adult-purposes simply because they identified the owner of the account as being involved in the adult field. Best to contact paypal anonymously to avoid hassle.
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