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A good way to look at this issue is this.
It's perfectly legal for hardware stores to sell tools, unless the intention of the hardware store is to sell tools that allow a burglar to go out equipped.
There are legal, licensed suppliers of firearms in many countries, however it is illegal for them to sell a firearm where they knowingly do so in order for someone to commit a crime.
There's nothing new to see here except that finally Visa and Mastercard are being made to catch up on various issues that have not been paid the proper attention. Illegal File Lockers, non compliant VPN services, non compliant USENET providers can all expect this shift to catch up with them.
The simple message is "comply with the law" or find yourself without the ability to accept Paypal or process credit cards.
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