6 Eye-Opening Examples of Financial Censorship — And How to Fight Back

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<p>Financial companies like PayPal, Venmo, and banks are increasingly acting as gatekeepers of online speech, often blocking transactions for arbitrary or discriminatory reasons. In her new book <em>Transaction Denied</em>, former EFF Activism Director Rainey Reitman exposes the hidden systems of power that turn payment processors into censors. Here are six shocking cases from the book that reveal the real-world impact of financial censorship — and how advocates are pushing back. <a href='#item1'>Read on</a>.</p> <h2 id='item1'>1. The Persian Poetry Teacher Cut Off from Funds</h2> <p>A U.S. citizen teaches Persian poetry online, sharing centuries-old verses with students worldwide. Suddenly, their PayPal and Venmo accounts are frozen with no explanation. The reason? A hyper-risky interpretation of U.S. sanctions on Iran — sanctions designed to deter terrorism and weapons development, not a poetry class. Reitman shows how these broad policies disproportionately harm Muslims, as the teacher's account was flagged solely because of their subject matter. With no transparency or recourse, financial intermediaries effectively silence cultural exchange, punishing lawful speech without due process.</p><figure style="margin:20px 0"><img src="https://www.eff.org/files/banner_library/financial-censorship-piggy2.png" alt="6 Eye-Opening Examples of Financial Censorship — And How to Fight Back" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: www.eff.org</figcaption></figure> <h2 id='item2'>2. A Muslim City Councilwoman Blocked for a Restaurant Name</h2> <p>In New York City, a Muslim councilwoman uses Venmo to pay for a meal at a Bangladeshi restaurant. The transaction is blocked — simply because the restaurant's name triggers automated flags. This case highlights how payment companies' vague policies and overzealous compliance algorithms target minority communities. Reitman explains that these blocks rarely come with explanations, forcing individuals to guess why they were censored. Even elected officials aren't immune, revealing a system that lacks accountability and disproportionately affects people of color and immigrants.</p> <h2 id='item3'>3. Erotic Storytelling Hubs Repeatedly Lose Payment Accounts</h2> <p>Online archives of erotic fiction have been lifelines for LGBTQ+ communities since the early internet. But platforms like the Nifty Archive and Smashwords routinely see their payment accounts shut down without warning. Banks and processors claim vague policy violations, often after pressure from anti-speech groups. Reitman details the successful campaign to restore the Nifty Archive's Stripe account, showing how coordinated advocacy can overturn these decisions. The fight continues, as queer creators and readers lose access to vital spaces for expression.</p> <h2 id='item4'>4. Drug Legalization Activists Struggle to Keep Bank Accounts</h2> <p>Activists advocating for drug policy reform face constant financial censorship. Banks close their accounts or deny services, citing reputational risk or profit motives. Even though their work is legal in many states, financial institutions treat them as pariahs. Reitman demonstrates how these decisions are rarely based on clear law but on corporate risk aversion. Activists are left without access to banking, forcing them to rely on cash or cryptocurrency — which in turn can attract more scrutiny. The pattern stifles legitimate political advocacy.</p><figure style="margin:20px 0"><img src="https://www.eff.org/files/privacy_s-defender-site-banner-desktop.png" alt="6 Eye-Opening Examples of Financial Censorship — And How to Fight Back" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: www.eff.org</figcaption></figure> <h2 id='item5'>5. The Hidden System of Power Behind Payment Censorship</h2> <p>Reitman argues that financial intermediaries have become <em>de facto</em> arbiters of online expression. Their decisions often stem from arbitrary corporate policy, misinterpretations of law, or pressure from censorship advocates. The book exposes a shadow system: no transparency, no right to appeal, and no independent oversight. Individuals from all walks of life — authors, journalists, teachers, even politicians — can lose access to their money overnight. This section of <em>Transaction Denied</em> urges readers to question when it is ever acceptable for companies to act as speech police.</p> <h2 id='item6'>6. A Decade of Advocacy Wins Shows We Can Fight Back</h2> <p>Despite the bleak picture, Reitman offers hope. <em>Transaction Denied</em> chronicles over a decade of successful campaigns. For example, EFF's coalition restored PayPal access for Smashwords, a self-publishing hub. More recently, the Freedom of the Press Foundation, seeded by EFF staff and board members, continues to defend press freedom. These wins prove that organized advocacy can counter financial censorship. Reitman provides a practical guide for those wanting to defend free speech — from filing complaints to building coalitions — showing that change is possible.</p> <p>Financial censorship is a growing threat to free expression, but as these six examples show, awareness and action can make a difference. To learn more about how to fight back, check out Rainey Reitman's <em>Transaction Denied</em> — a crucial read for anyone who cares about the future of online speech. <a href='#item1'>Start</a> by understanding the stories, then join the movement.</p>