Visa And Mastercard Ban Anonymizing VPNs... Just As They Allow Wikileaks

from the arbitrary dept

Wed, Jul 3rd 2013 5:27pm — Mike Masnick

This is random. Just as Mastercard and Visa are allowing payments to Wikileaks again after a two year hiatus, those same two companies have started banning VPN providers. If you don't recall, the credit card companies refused to process payments for Wikileaks, following significant pressure from US officials, even as they have no problem processing payments to hate groups like the KKK. After a long legal dispute, an Icelandic court ordered the credit card companies to start processing payments to Wikileaks again.

Given all of that, it's quite bizarre that they're now cutting off various VPN/anonymizing services, as it should be quite obvious that there are tremendous perfectly legal and reasonable uses of such services. Personally, I have two VPN services, which I use when I travel, or am working from outside the office to make sure my data is encrypted and safe. It's really just good computing hygiene to use such a service. However, apparently, Mastercard and Visa would like everyone's data to be exposed.

It now turns out that these policies have carried over to VPN providers and other anonymizing services. Before the weekend customers of the popular Swedish payment service provider Payson received an email stating that VPN services are no longer allowed to accept Visa and Mastercard payments due to a recent policy change.

"Payson has restrictions against anonymization (including VPN services). As a result Payson can unfortunately no longer give your customers the option to finance payments via their cards (VISA or MasterCard)," the email states, adding that they still accept bank transfers as deposits.

The new policy went into effect on Monday, leaving customers with a two-day window to find a solution.

At least one of the VPNs so impacted, iPredator, is apparently looking at its legal options. Given Wikileaks' victory on a nearly identical issue, you'd think that the credit card companies would know better -- but perhaps they think that the VPN providers won't bother with a costly legal battle.

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Filed Under: anonymity, encryption, payment processing, payments, vpns
Companies: ipredator, mastercard, visa, wikileaks

78 Comments

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ChurchHatesTucker (profile), 3 Jul 2013 @ 5:43pm

Mastercard AND Visa?
They're not even trying to pretend they're not a duopoly, are they?
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Bitcoins, 3 Jul 2013 @ 5:55pm

I hope Bitcoins boom!
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Anonymous Coward, 3 Jul 2013 @ 5:55pm

while everyone is protesting and shooting fireworks, you know a new disastrous bill will make it through right under your noses...
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That Anonymous Coward (profile), 3 Jul 2013 @ 6:02pm

Lawsuits from small companies pale in comparison to the large ones the content cartels would bring, and that pesky White House involvement.
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This comment has been flagged by the community. Click here to show it

Anonymous Coward, 3 Jul 2013 @ 6:08pm

Given all of that, it's quite bizarre that they're now cutting off various VPN/anonymizing services, as it should be quite obvious that there are tremendous perfectly legal and reasonable uses of such services.

This article is hilarious coming from you, Mike.

If these services are so great, then why do you block people who use anonymizing services from posting on Techdirt?

Do as you say, not as you do, right?
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Paul Renault (profile), 3 Jul 2013 @ 6:09pm

Grrr....
I was kinda toying with the idea of a VPN account somewhere...now I'll definitely get one....
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Pixelation, 3 Jul 2013 @ 6:30pm

More warfare, likely directed by the US government, on privacy.
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Anonymous Coward, 3 Jul 2013 @ 6:32pm

Re:
If your posts are getting flagged as spam maybe you're doing something wrong.

If you are actually spamming you're doing something wrong.

This might come as a shock to you, but people don't want to read post after post of "milk! milk! milk!".
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Anonymous Coward, 3 Jul 2013 @ 6:35pm

Re:
Oh really? Grow up AJ.

This comment brought to you by a convenient anonymizer service.
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Anonymous Coward, 3 Jul 2013 @ 6:42pm

Re: Re:
And, here I am again using no anonymizer service.

AJ, if your comments are getting "blocked", it's likely because you insist on spamming, relentlessly.

And, any of your comments that do make it through are largely reported and hidden by the community. Why? Because of your childish and trollish behavior. It is absolutely sickening the disparaging levels your comments stoop.

You are not trusted here. At all.
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This comment has been flagged by the community. Click here to show it

horse with no name, 3 Jul 2013 @ 6:51pm

nice try
Nice attempt to re-write things. Mastercard and Visa aren't "allowing" Wikileaks, they are being forced by the courts to process for them.

It's not at all the same thing. Being ordered by a court to do something is now allowing anything.

Oh, and three weeks on, and all of my comments are held for moderation still. Techdirt censorship lives.
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Anonymous Coward, 3 Jul 2013 @ 6:58pm

I use VPN service every day, for work related activities. With all the NSA snooping and privacy invasion by corporations, personal VPN services are quickly becoming an important thing for regular people as well.

But, because VPNs can be used to hide copyright infringement, the entertainment industry, in their eternal war against the internet, want to work hard to make VPNs, a vital tool on-line, harder to use.

They never give up and they'll continue to play whac-a-mole and insist on their out-dated business model until they are no longer relevant and then we can finally ignore them.
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dz, 3 Jul 2013 @ 7:06pm

Well, we can assume that MC & Visa are not now allowing payments to Wikileaks because they have become defenders of free communications.

Perhaps the source of their original ban now wants these payments to be made & [as we know] made visible to the authorities [which fits with the anonymizer ban]
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Anonymous, 3 Jul 2013 @ 7:16pm

Re:
WTF are you talking about? I always post through a proxy (as everyone should), and I've never had a problem.
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Anonymous Coward, 3 Jul 2013 @ 7:52pm

Most major ISPs also offer VPN services. Verizon, AT&T, etc...
That is a lot of phone and cable bills to not pay by credit card.
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Chronno S. Trigger (profile), 3 Jul 2013 @ 7:58pm

Re:
I somehow doubt that Verizon and AT&T would count as anonymizing VPN providers. That's the biggie here. If the VPN service is willing to sell out their users to the NSA, the credit card companies have no problem with it.

American Express gift cards, here I come.
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Anonymous Coward, 3 Jul 2013 @ 8:09pm

Re:
Maybe they have a problem user that does not get the message that he is not welcome.

I have had one guy on my website for a few years that just does not get the message that he is not welcome on my website, and I finally had to block all proxies, VPNs, and anonumity services to keep him out.
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Anonymous Coward, 3 Jul 2013 @ 8:10pm

My filtering software classies iPreadtor as file sharing rather than proxy/anonymizer. It could be that classification that is getting iPredator banned. I would imagine MC/Visa are looking at how filtering companies classify websites.

Why iPredator is classified as file sharing, rather than proxy/anonymizer, is a mystery to me.
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Anonymous Coward, 3 Jul 2013 @ 8:32pm

This is exactly why bitcoins have been all the rage recently everywhere.
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Anonymous Coward, 3 Jul 2013 @ 8:39pm

I'm going to try and use VISA and Mastercard as little as possible. I don't want to be responsible for supporting a dictatorship.
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Anonymous Coward, 3 Jul 2013 @ 8:44pm

Interpol involvement?
Just last April, Interpol was involved, along with Visa and MasterCard, in an effort to shut down payments to file sharing sites. I suspect this is part of the same operation.
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sophisticatedjanedoe (profile), 3 Jul 2013 @ 9:04pm

Re: Mastercard AND Visa?
No, they are not, As a matter of fact, Mike got it wrong: while Visa accepts payments for Wikileaks, it bans VPNs. At the same time, MasterCard blocks WL, but is perfectly fine with anonymizing services.
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Anonymous Coward, 3 Jul 2013 @ 9:20pm

Re:
Why iPredator is classified as file sharing, rather than proxy/anonymizer, is a mystery to me.

Probably because iPredator is (losely) related to The Pirate Bay, and anything with TPB associated with it is obviously engaged in Grand Theft Digital.
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Rekrul, 3 Jul 2013 @ 9:27pm

Re:
I hope Bitcoins boom!

They probably will once it gets to the point where you don't need to take half a dozen different steps to use them.
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Anonymous Coward, 3 Jul 2013 @ 9:41pm

Do they seriously not see they're just encouraging the creation of their own competitors, and hastening their own decline towards irrelevance?

People ARE going to use anonymous VPNs, and if they can't use Visa or Mastercard they'll use some other payment method.
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Anonymous Coward, 3 Jul 2013 @ 9:42pm

Re:
But they're not anonymous VPN services. They're standard VPN services. Anonymous VPN services are the ones that don't record your IP, so are not able to pass your details onto law enforcement if requested too.
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Anonymous Coward, 3 Jul 2013 @ 9:59pm

VPN's First target of NSA
If you don't believe being on a VPN is a HUGE FLAG pointing you so you are mistaken.

Go ahead and use VPN's all you like, live in your delusion that it provides you added security, ignore reality! (at your own peril).

Of course, make sure your VPN is sponsored by a reputable company, like NSA, I am sure they run THOUSANDS of them, it's so much easier that way.
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Anonymous Coward, 3 Jul 2013 @ 10:41pm

Holy shit

Any argument they could have made for Wikileaks

Fine

What possible excuse would they have for VPNs? Fucking seriously. What do VPNs have to do with anything that interests these companies?

What a couple of stooges.
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Anonymous Coward, 3 Jul 2013 @ 10:51pm

I thought a little more about it, and the good news is that this means that it's infeasible/difficult/inconvenient for the government to track and identify users behind VPN services. Which means it's not that far of a step ahead in the game of cat and mouse online privacy. So it's a plus for VPNs, a minus for consumers.
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Anonymous Coward, 3 Jul 2013 @ 10:58pm

Re: VPN's First target of NSA
If you don't believe being on a VPN is a HUGE FLAG pointing you so you are mistaken.

So what are they going to do about it?
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TK, 4 Jul 2013 @ 12:06am

So, is this include Tor or is it just VPNs?
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That One Guy (profile), 4 Jul 2013 @ 12:35am

Re: Re:
Nothing so grand actually, it's basically one of two things:

1) AJ continues to spam the same post, which is nothing more than a link to what's basically a stalker's diary AJ has focused on Mike, which trips the automatic spam filter(and rightly so),

and/or

2) AJ posts his usual rot, and the community, which has gotten tired of humoring him, report it as spam/trollish so quick it appears(to his paranoid mind) to be 'automatically blocked'. The fact that he's still able to post, and his post is all of one click from being able to be read is apparently beyond him, so he assumes he's being 'blocked', and whines appropriately.
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PaulT (profile), 4 Jul 2013 @ 12:43am

Re: VPN's First target of NSA
VPNs are used for much more than trying to stay away from the NSA, and usually indicate perfectly legal and legitimate activity. They're welcome to decrypt my VPN traffic all they want, but all they're going to find is an extra layer of security for me to use when remotely administering systems with 100% legal activity being processed. They can waste all the time they want on that. If they're wasting resources on investigating my legal activity just because I want to protect my systems from a class of exploit, well it's not my tax money.

Besides, which alternative are you suggesting? Are you saying that people shouldn't bother with any security because the NSA might still be able to decrypt VPN traffic? Seriously?
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Anonymous Coward, 4 Jul 2013 @ 12:52am

Re: Re:
Spot on. The scumbags are trying everything they can to take down TPB. It won't work, but they're, as usual, wasting the money they illegitimately took from law abiding citizens around the world to take down the very services that blows their antiquated business models out of the water. They have access to mega-stars and such forth, and they still piss around trying to stop free digital copies. They are clearly incapable of utilising the talent at their disposal and hence fail in their duty to the artists. As Richard Stallman said, they should be killed off, they have started a war against their customers, and that's simply not acceptable behaviour.
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PaulT (profile), 4 Jul 2013 @ 1:01am

Re: Re: Re:
From my experience: if you submit a post and it doesn't appear immediately, it's probably been caught by the spam filter. Links seem to be the main things that trigger it, and even then only when I forget to log in before commenting - yes, AC/AJ, if you impose anonymity on your comments, you lose any trust that an identity would provide and so your spammy links are treated as such. The post will appear once (I believe manually) approved - assuming that it's not actually spam of course. If the post appears normally and is then hidden, it's been reported by other users.

In other words, either his comments are so full of crap that they're automatically filtered as spam, or they're so full of crap that other readers don't wish to read them. So of course, he'll blame that on some fictional VPN filter rather than the fact that he is indeed posting crap.
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Zakida Paul (profile), 4 Jul 2013 @ 1:02am

"This is random."

No it's not, it's sheer idiocy and anyone who defends such a move is an idiot.
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Alan, 4 Jul 2013 @ 1:27am

What VPN services do you use?
I'm currently living abroad, and am not overly thrilled with my VPN provider as of late. What are the some good choices? I'd like to know which ones Mike uses...

Thanks in advance!
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Anonymous Cowherd, 4 Jul 2013 @ 2:16am

Only an idiot would pay for an anonymizer service with a credit card in the first place.
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Alan Wade, 4 Jul 2013 @ 3:13am

My Concern
I still believe that secure socket tunnel protocol is the protocol for encryption.
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Coyote (profile), 4 Jul 2013 @ 3:38am

Re:
You mean, pulling a Snowden right? Considering you aren't being blocked, just spammed, it's the community and not the site itself, dumbass.

But I suppose I can't fault you; much like how you lay the blame upon Mike's shoulders, you refuse to think any of the blame for piracy, or IP concerns coming about all lay not upon the consumer, but upon the shoulders of the corporations, a problem they created that they refuse to fix.

But hey, feel free to blame Mike and everyone else for your constant stupidity and naivete'.
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Erik, 4 Jul 2013 @ 3:40am

Re: What VPN services do you use?
One that I can recommend for the trustworthiness factor (haven't tried it so I can't judge the technical factor) is Toonux. It is operated by Bluetoof, the journalist who broke the story about Gaddafi's and Assad's wholesale DPI espionnages coming from French (Amesys) and American (Bluecoat) companies. And Bluetoof still reports and operates the #1 French-language journalism website about privacy and security on Reflets.info

Personally, I rarely use VPN (I guess I should but I'm lazy) and when I do, I use SecurityKISS which has a free VPN scheme with an allowance of 300 MB per day.
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Anonymous Coward, 4 Jul 2013 @ 4:36am

Re:
They did!

Oh wait, they're worthless now.

No, wait, they're worth something again...

...aaaaaand....back to worthless.

Hold the phone! It's picking up...it's going...going...gone?...no, wait still going...and crashed again...

Oh what a fun currency.
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Anonymous Coward, 4 Jul 2013 @ 4:52am

Re: Re: Re:
This isn't rocket science. AJ's behaviour matches pretty well with that of a spammer:

- Posts as AC;
- Spams a link (and last I saw, it was a "shortened" link...tinyurl I believe);
- Usually posts from a proxy/tor (according to himself, at least);
- His text doesn't match up very well to "human" speech (milk, milk, milk...nuff said).

These are all spam red flags. Alone, by themselves, they aren't a big deal, and the filter will probably let them through. Combined...well...that's a spam filter perfect storm.

It is only natural that he'll be caught by the filter.
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Anonymous Coward, 4 Jul 2013 @ 5:13am

Ipredator
Of course ipred is crying they host many of the anti p2p community, and dumasses like the websheriff, what a terrifying title.
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Anonymous Coward, 4 Jul 2013 @ 5:15am

Re: What VPN services do you use?
Torguard works pretty good here in the states, never tried outside yet.
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Anonymous, 4 Jul 2013 @ 5:23am

Re: Re:
We have only their word that they don't record our IPs.
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Anonymous Coward, 4 Jul 2013 @ 6:44am

all that really needs to happen is to ban all the Hollywood and entertainment industries stuff from the 'net and people can get on quietly and happily with their lives. think back and tell me when there was this much shit over anything, on or off the internet! there was absolutely nothing until those industries got their grubby little mits into it. there would be no problems at all if it weren't for them. the sooner they are banned the better. no one would miss their stuff, we all lived without it before, we can live without it now. the only reason they keep throwing tantrums and forcing (or getting the US government to force) this and that service to close is because they dont and never will control the internet, or the best file transfer protocol ever invented. if they were able to say who could use these two services and how much it would cost, they would keep quiet. as it is, i just want them to keep quiet and fuck off! somewhere out the way, like Mars, would do fine!!
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Anonymous Coward, 4 Jul 2013 @ 6:51am

Re: Re:
"and anything with TPB associated with it is obviously engaged in Grand Theft Digital"

I thought the official charge was "Felony interference with an outdated business model"
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ChrisB (profile), 4 Jul 2013 @ 7:28am

Re:
You understand they do these things due to government interference. Big government is the problem, not big business.
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ChrisB (profile), 4 Jul 2013 @ 7:31am

Re:
No! It is governments that need to be banned off the internet, not businesses. Hollywood wouldn't have any power if it weren't for government granted monopolies for hundreds of years. This has to stop.
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Anonymous Coward, 4 Jul 2013 @ 8:01am

Re: Re: bitcoin boom
You could try pikapay.com
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That One Guy (profile), 4 Jul 2013 @ 8:19am

Re: Re:
No, it's very much both. While the government did grant them those monopolies, hollywood pays them quite well for them, so if you just stopped the government, it would only be a matter of time before hollywood bought their previous position of power back.
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Anonymous Coward, 4 Jul 2013 @ 8:46am

Re: Re: VPN's First target of NSA
I don't use VPN's and I don't care if the web sites I visit are tracked, or my phone calls for that matter. I know they both are, have always been and will continue to me..

So far, the only disadvantage to that is I have to pay my phone bill based on the cost of the calls I make.
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Daemon_ZOGG (profile), 4 Jul 2013 @ 8:57am

"Visa And Mastercard Ban Anonymizing VPNs..."
Keeping on topic... Seems to me that your not really on the anonymizing path if your using Visa or Mastercard in the first place. Bitcoin or other anonymous payment transfer mediums may provide a more logical solution. ;)
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bonford (profile), 4 Jul 2013 @ 1:46pm

"Due to a recent policy change"
This sounds like Payson's policy, not Visa and Mastercard. Maybe they were on the hook for fraudulent credit card charges and felt this was the best way to protect themselves.

This makes more sense than V and MC banning only 1 payment provider and leaving everyone else alone.
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KJ (profile), 4 Jul 2013 @ 2:39pm

Re: "Visa And Mastercard Ban Anonymizing VPNs..."
It's quite easy to stay anonymous even while using visa/mc: pre-paid cards
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Anonymous Coward, 4 Jul 2013 @ 7:36pm

I was just reading TorrentFreak and in it was a story about how some content owners are complaining that actually blocking links to pirate sites have initiated a cascade effect where thousands of new links are created for everyone removed, is like a nuclear explosion, where blocking of the radiant link starts a chain reaction.

�It�s certainly fair to say that the blocking policy is perhaps backfiring badly,� Brandes concludes.

TorrentFreak: RIAA Hits 25 Million Google Takedowns, Web Blocking Making Things Worse
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OnionLover, 4 Jul 2013 @ 7:52pm

Re:
Maybe is just your anonymizing service dude, mine works fine here, one of the few places by the way that truly allow anonymous posts.

Seeing you wildly flailing your little arms in the air is just funny. In my mind that is.

Now even if that is true and you are being censored, you are just proving one thing, nobody can stop you from being whatever you want to be even if all you want to be is an idiot.

You obviously can bypass the censorship as you try to prove it posting in every single thread.

You are determined aren't you?
Now imagine the other 7 billion pirates that don't agree with you, imagine what they would do to you and your kind LoL
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Niall (profile), 5 Jul 2013 @ 3:09am

Re:
The thing is, many regular accounts use Visa as well, not just credit services - Visa and Mastercard back a lot of normal debit account services.
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The Groove Tiger (profile), 5 Jul 2013 @ 7:33am

Re: Re: Re: Re:
Just to clarify, the spam filter catches even registered users. I commented on how "this is how idiot AJ posts: milk! (link to worthless crap)" and it got caught, but released minutes later.
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PaulT (profile), 5 Jul 2013 @ 7:50am

Re: Re: Re: Re: Re:
Ah, interesting to know, I've never seen it happen when I'm logged in.
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Anonymous Coward, 5 Jul 2013 @ 8:22am

Re: nice try
Really? All you have is a dumb semantic argument?
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Brian Gendron, 5 Jul 2013 @ 8:33am

VPN
The Payson VPN issue is not a result of a MasterCard decision. This is an issue best directed to Payson.
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RyanNerd (profile), 5 Jul 2013 @ 9:36am

Re:
Google Wallet just got installed at my local grocery store.
I use PayPal almost exclusively for purchases.
(Yes I realize that those are not technically credit card service companies, but it does add a bit of a private firewall)
I wish more merchants took American Express and Discover.
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Anonymous Coward, 5 Jul 2013 @ 9:36am

Re: nice try
horse with no name, exactly how much time have you spent your life in Germany?
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RyanNerd (profile), 5 Jul 2013 @ 9:44am

Just to show you how old I am
Just after the dinosaurs all died and this Internet thingy came into common usage, and the HTTPS had yet to be drafted... Visa and MasterCard wanted to force everyone to use their security protocols. After some wrangling both companies realized eventually that a single security protocol not nessicarly invented by them would better serve the public and their interests.
This was a real debate when most websites did not offer a method of purchasing anything and most had rows flaming skulls as a part of their web design.
My guess is that these credit card companies will eventually give up fighting against VPN for similar reasons. It just takes these two duo-opolies a little while to come to grips with reality.
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Anonymous Coward, 5 Jul 2013 @ 9:14pm

Re:
Visa & Mastercard aren't just going to throw away business. The US Government told them to
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Anonymous, 7 Jul 2013 @ 3:18pm

Re: Re:
I use cash.
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Anonymous, 7 Jul 2013 @ 3:22pm

Re: Re: VPN's First target of NSA
A person can only do so much, and nothing is 100% foolproof. But what you CAN do, you should do.
I myself have wondered if the government operates certain proxies and VPNs, but so far I haven't heard of them doing so.
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Anonymous, 7 Jul 2013 @ 3:25pm

Re:
Never underestimate the stupidity of the human race. After all, there have been idiots who have paid for access to child porn sites with a credit card.
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Rekrul, 9 Jul 2013 @ 7:21pm

Re: Re: Re: bitcoin boom
Under "How it works" it says you can load your wallet by either requesting Bitcoins from others or by using "Add Cash". Of course there are absolutely no details about the Add Cash option, so I suspect that they assume you already have a Bitcoin wallet set up with Bitcoins in it, which is the part that requires a bunch of steps.
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Bolton, 20 Jul 2013 @ 6:46am

Anonymous VISA
This is why I no longer use credit cards. I'm now using anonymous debit cards which I get from BitMit like here:
Anonymous VISA card
[ link to this | view in thread ]
vpn, 14 Sep 2013 @ 3:52am

Why use vpn service for more security
StrongVPN bids exit points to an impressive number of 15 countries; still it depends that on the package you have taken and you may receive the ability only for the usage of one of them.
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bearpaw, 17 Sep 2013 @ 6:45am

Re:
Egh.. it's hard enough to find legitimate privately own VPNs and we're suppose to trust going through AT&T, Verizon, etc who make their money from the information they collect from their customers and have little hesitation to turn over client information without warrants.

No thank you. Your point, however, is valid.
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Silver Fang (profile), 17 Sep 2013 @ 10:32am

Lawsuit time! It seems to be the only way these credit card companies learn.
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dinaafifi, 29 Oct 2013 @ 2:53pm

My VPN provider�http://www.waselpro.com�with anonymous and secure account. It works great for me everywher.
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Australia Visa Services, 22 Dec 2013 @ 5:49am

Australia Visa Services
Yes I think it seems to be the only tems these credit card companies learn.
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Get Cheap VPN Services from Dream VPN, 25 Jul 2014 @ 4:00am

VPN Services
Very informative post for MasterCard & Visa holders. Keep updating us with posts like this. Thanks for your valuable entry.
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