Financial Blacklisting: New Book Exposes How Payment Platforms Censor Speech
A new book, *Transaction Denied*, sheds light on the increasing problem of financial institutions and payment intermediaries shutting down accounts and inhibiting transactions based on speech. The book highlights cases where individuals, including teachers and politicians, have been denied access to funds due to arbitrary corporate policies and broad interpretations of the law.
A U.S. citizen teaching Persian poetry online finds their account frozen by **PayPal** and **Venmo**. A Muslim city councilwoman in New York City has a Venmo payment blocked for referencing a Bangladeshi restaurant. Online hubs for erotic storytelling repeatedly lose payment accounts. Advocates for drug legalization struggle to maintain bank accounts. These aren't isolated incidents; they're part of a disturbing trend.
**Rainey Reitman**, former **EFF** Activism Director and Chief Program Officer, explores this issue in her new book, *Transaction Denied*. The book investigates the question: “Is it ever OK for financial intermediaries to act as the arbiters of online expression?”
Reitman uses compelling stories to illustrate how financial institutions and payment intermediaries are shutting down accounts and inhibiting transactions. These actions often lack explanation, transparency, or recourse. The reasons, she argues, are frequently speech-related, stemming from arbitrary corporate policy, misinterpretations of the law, or pressure from anti-speech advocates.
For example, the Persian poetry teacher's account was blocked due to a risk-averse interpretation of U.S. sanctions on Iran. Reitman argues that these sanctions disproportionately impact Muslims.
*Transaction Denied* also serves as a guide for those fighting for free speech. The book highlights successful campaigns, including the effort to restore the **Stripe** account of the **Nifty Archive Alliance**, a nonprofit supporting the Nifty Archive, a hub for queer erotic storytelling. It also covers the EFF's campaign to restore the PayPal account of **Smashwords**, a self-publishing platform. Additionally, the book recounts how EFF staff members and board members helped create the **Freedom of the Press Foundation**, which partners with EFF to advance the rights of journalists.
**Cindy Cohn's** book, *Privacy Defender*, explores how online privacy has changed over the last three decades. If you're concerned about financial censorship, *Transaction Denied* is a must-read. Half of the author proceeds go to Freedom of the Press Foundation.