[RawAlex]

I just have a weird feeling that Deepak found a willing bank or series of banks that would host credit card processing for adult sites, banks that are more than willing to take the heat and not impose too many restrictions or pass on charge backs. Based on the FTC complaint against the Brazzers guys regarding he money coming into the US from overseas and then getting paid out, there is concern about international flows of income.

I would also suspect that they have found certain jurisdictions to have companies in (seems the UK is popular right now) that allow them to limit their tax liabilities, as well as giving them access to even more processing. It's the only way that they can continue to do such significant cross billing with impunity.