A gay sex Web site has filed a lawsuit against PayPal, the web staple that acts as an intermediary for money transactions online, after the financial giant dropped the adult site.

Though CruisingForSex.com (which stands for Cruising for Sex) claims it only used PayPal to process donations for Hurricane Katrina victims, PayPal issued a statement that the adult site's content violated its policy against "the purchase or sale of, or receipt of donations for, any obscene or sexually oriented goods or services."

What rankled Paypal is that CFS has chat rooms, personals and listings of "cruising spots" for men to hook up with other men, according to a company spokeswoman. It also contains numerous photos of nude men and has advertisers that sell gay porn and sex toys.

"PayPal does not permit our services to be used on adult Web sites, and when the PayPal buttons were on this Web site, they were on pages that had adult services," Sara Bettencourt, a company spokeswoman, told Planet Out.

However, Keith Griffith, founder of New Orleans-based CFS, said he was using PayPal only to collect donations for two employees who were victims of Hurricane Katrina, not to sell porn or sex toys.

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