Operation Choke Point- The DOJ using banks to shut down industries they don't like

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5. Types of High Risk Payments

Although many clients of payment processors are reputable merchants, an increasing number are not and should be considered “high risk.” These disreputable merchants use payment processors to charge consumers for questionable or fraudulent goods and services. Often a disreputable merchant will engage in high pressure and deceptive sales tactics, such as aggressive telemarketing or enticing and misleading pop-up advertisements on Web sites. For example, consumers should be cautious when Web sites offer “free” information and ask consumers to provide payment information to cover a small shipping and handling fee. In some instances and without proper disclosure, consumers who agreed to pay these fees, often found their bank accounts debited for more than the fee and enrolled in costly plans without their full understanding and consent.8 Still other disreputable merchants will use processors to initiate payments for the sale of products and services, including, but not limited to, unlawful Internet gambling and the illegal sale of tobacco products on the Internet.

Generally, high-risk transactions occur when the consumer does not have a familiarity with the merchant, or when the quality of the goods and services being sold is uncertain. Activities involving purchases made over the telephone or on the Internet tend to be riskier in that the consumer cannot fully examine or evaluate the product or service purchased. Similarly, the consumer may not be able to verify the identity or legitimacy of the person or organization making the sale.

Some merchant categories that have been associated with high-risk activity include, but are not limited to:

•Ammunition Sales
•Cable Box De-scramblers
•Coin Dealers
•Credit Card Schemes
•Credit Repair Services
•Dating Services
•Debt Consolidation Scams
•Drug Paraphernalia
•Escort Services
•Firearms Sales
•Fireworks Sales
•Get Rich Products
•Government Grants
•Home-Based Charities
•Life-Time Guarantees
•Life-Time Memberships
•Lottery Sales
•Mailing Lists/Personal Info
•Money Transfer Networks
•On-line Gambling
•PayDay Loans
•Pharmaceutical Sales
•Ponzi Schemes
•Pornography
•Pyramid-Type Sales
•Racist Materials
•Surveillance Equipment
•Telemarketing
•Tobacco Sales
•Travel Clubs

http://www.fdic.gov/regulations/examinations/supervisory/insights/sisum11/managing.html