Steam payment headaches grow as PayPal is no longer usable for much of the world

https://www.pcgamer.com/games/steam-payment-headaches-grow-as-paypal-is-no-longer-usable-for-much-of-the-world-valve-hopes-to-bring-it-back-in-the-future-but-the-timeline-is-uncertain/

by mrkramer • 11 months ago

57 39 11 months ago

pcgamer.com

JumpCrisscross2• 11 months ago

“In early July 2025, PayPal notified Valve that their acquiring bank for payment transactions in certain currencies was immediately terminating the processing of any transactions related to Steam. This affects Steam purchases using PayPal in currencies other than EUR, CAD, GBP, JPY, AUD and USD.”

lesuorac• 11 months ago

So, this means a bank that handles EUR, CAD, GBP, JPY, AUD and USD isn't afraid of Visa/MasterCard and is willing to process the transactions while the other currencies don't have a willing bank?

JumpCrisscross2• 11 months ago

It means PayPal’s bank(s) don’t want to take foreign currency risks in non-major currencies.

laughing_man2• 11 months ago

The whole situation is getting weird. I know of a streamer who got his account locked because someone with one of the "other" currencies sent him money as a tip. And of course PayPal is holding onto his money (including a bunch of other transactions) without saying when or if they'll ever give it to him.

It all just cements a decision I made almost two decades ago to refrain from ever using PayPal.

lumost• 11 months ago

Watching this from afar, I'm deeply confused about the recent trend of payment processors determining what types of vice can be accessed using their payment systems. I understand legal compliance, and cases where legal compliance is ambiguous (marijuana transactions in the US). However why are payment processors collectively policing what is acceptable in video games?

mrguyorama3• 11 months ago

Payment processors are being sued by essentially religious fundamentalists. They are anti-porn, have very very good lawyers, and keep winning vague cases.

https://en.wikipedia.org/wiki/National_Center_on_Sexual_Expl...

frogperson• 11 months ago

Is there anything religion cant ruin? Why cant these people just leave everyone else alone?

laughing_man2• 11 months ago

Religious fundamentalists and feminists. The group that touched off the recent problem is of the latter variety.

jjk166• 11 months ago

Well first certain activities are very difficult to directly police so rather than getting better at dealing with the actual criminal behavior, you instead go after the money which is merely a proxy for the behavior.

Unfortunately tracking monetary transactions and finding the people doing heinous behavior you're supposed to be policing is still pretty hard, so you you hand off that task to someone else. The best way to go after the money is to put tight restrictions on money processors to collect data and high penalties for looking the other way, so they'll do your job for you.

Unfortunately determining which transactions are actually illicit is also pretty hard, so the payment processors go employ intermediate firms which give various buisnesses scores based on how well they comply with the payment processor's guidelines, which is a proxy for transaction suspicion.

Unfortunately scoring businesses on how well they comply with guidelines is also hard, so the intermediates make the businesses adopt operating guidelines and just compare how well those match up to the payment processor's, which is a proxy for how well the company complies. Typically these guidelines have certain moderation requirements.

Unfortunately moderating content is hard, so businesses that handle transactions for 3rd party content put the onus on those using their platform to self moderate, and put in place overly conservative moderation designed to satisfy the intermediates.

Repeat this a few times for a few different classes of behavior and suddenly the financial infrastructure is one of the most powerful tools to manipulate the population at scale in the world, much to the satisfaction of those who came up with the system. It's amazing how much extra you can get done by not doing your job.

OgsyedIE• 11 months ago

The payment processors are complying in advance with laws that don't exist yet but are expected to be made. The Visa Global Government Affairs Department and the Mastercard Government Affairs & Policy Team hire historians and political scientists with years of policy industry experience to assess the political risks of failing to align with the ruling party of the country they are headquarted in.

For example, one of the major banks in Weimar Germany was Mendelssohn & Co., which did not align with the ideology of the post-1933 government. In 1938 the bank was liquidated and the assets forcibly absorbed into Deutsche Bank. The executives of Mendelssohn & Co. who were not already members of the Nazi party were all arrested and later murdered in the Holocaust, with the exception of Rudolf Loeb who fled to Argentina and died in 1966 and Paul Kempner who fled to the United States and died in 1956.

altairprime• 11 months ago

Is it Fiserv? I notice Mastercard invested into PayPal and Fiserv just a couple months ago, and PayPal was already in business with Fiserv via Fastlane.

mrkramer• 11 months ago

Payment ecosystem is so complex and convoluted that it is hard to tell. I was using my Visa card for years on Steam and all of a sudden Steam started refusing it. Steam support was repeatedly telling me that the problem is not on their end but on my end. At the end I figured out that I need to enable Visa 3D Secure feature on my credit card because I assume Visa was seeing a lot of fraud from Steam so they started requiring 2FA for Steam payments.

Also Bandcamp.com refused to accept the payment from my credit card and I contacted my bank and they told me that payments to Bandcamp are always blocked because of security reasons(that is their policy) and they had to manually approve my credit card for use on Bandcamp....which is totally fu*king crazy. Manually approving payment transactions in the 21st century is wrong. How the hell should I know which vendors are on my bank's blacklist?!

Tbh or at least that's my impression all comes down to the problem of fraud and crime. That's why we still have shitty payment providers and processors.

upseo• 11 months ago

Ironically, porn website keep accepting Visa/Mastercard like nothing happened

jeffwask• 11 months ago

and all the sports betting sites are doing just fine.

linotype2• 11 months ago

I never thought I’d hear myself say this, but can Steam just accept Bitcoin?

mrguyorama3• 11 months ago

Steam DID accept bitcoins for like a year. They shut it down because of high fees, volatility, and because nobody actually buys things with bitcoins

linotype2• 11 months ago

Sounds like there may be no other option for some soon.

elpocko• 11 months ago

They did for a while.

https://www.pcgamer.com/50-of-transactions-were-fraudulent-w...

paradox460• 11 months ago

A "better" solution (and the term better is doing a lot of heavy lifting here) is to implement something like steam points, akin to what Microsoft did 20 years ago for the Xbox. Now payment processors just see people paying for steam points, not what's actually being purchased.

There's no need for it to be distributed or any of the other aspects of crypto, steam is the issuing and accepting authority, and no one else matters, as far as steam is concerned

Arrowmaster• 11 months ago

They literally already do this but without the points nonsense.

siva7• 11 months ago

This screams so hard to buy a bank to solve this problems out for the gaming industry. Valve has the capital to do this but probably not the CEO...

burnt-resistor• 11 months ago

I know someone who bought a defunct bank to solve a family wealth repatriation catch-22 issue.

This might be a sensible approach.

Or, if they had some sense, they'd get into the credit business with their own "store card" that doesn't use V/MC. With this, they'd have the leverage to tell credit card processors to "get bent" should V/MC try telling them how to run their business and what content is acceptable.

mock-possum• 11 months ago

And the thing is, I absolutely trust Valve to run a bank / provide a card. They’ve built such good will over a quarter of a century at this point that I’d love to see them step up to implement a solution like this for me.

Habgdnv• 11 months ago

First they came for the porn, and I did not speak out - because, officially I do not watch porn.

Then they came for cryptocurrency, and I did not speak out - because I am not a crypto bro.

Then they came for the games, and I am a gamer... but there was no one left to speak for me, because payment processors had already "ethically" deplatformed everyone else.

kbelder• 11 months ago

All the guys, at least.

dankwizard• 11 months ago

Transactions done through steam not in USD are 1.1% of all transactions. Not even a noticeable drop.

supermatt2• 11 months ago

That seems like it cannot be true, given the percentage of customers from countries with their own currency storefronts. What is your source?

jackvalentine• 11 months ago

Own currency storefronts display in local currency and charge in USD.

I was extremely surprised to see the international transaction fees my bank charged.

up-n-atom• 11 months ago

I kinda question the validity of the NSFW explanation news articles are bringing up because it’s signalling out foreign assets more than anything. Maybe a ploy in trying to keep the reign of the US currency, G7, and debt holders over BRICS plus outspoken critics? Just a quick look at the nations and currencies it seems more plausible. As a bank you don’t want that target on your back nor do you want to be excluded from SWIFT. But I guess this is way over the heads of the average gamer so blame corn.

Steam payment headaches grow as PayPal is no longer usable for much of the world

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