Valve Accuses Mastercard of Backdoor Pressure as Payment Dispute Escalates

Following criticism over the recent removal of adult content games, reportedly due to pressure from payment processors, Mastercard issued a brief statement on Friday, August 2, as per TechCrunch. The conflict between Mastercard and Valve has brought attention to how payment companies influence gaming platforms and their content policies.

The payment company said, “Mastercard has not evaluated any game or required restrictions of any activity on game creator sites and platforms, contrary to media reports and allegations. At the same time, we require merchants to have appropriate controls to ensure Mastercard cards cannot be used for unlawful purchases, including illegal adult content.”

The reply came after the advocacy group Collective Shout recently published an open letter targeting executives at PayPal, Mastercard, Visa, and others. The letter criticizes them for allowing the sale of games like “No Mercy,” which depict rape, incest, and child sexual abuse.

Payment Company Denies Pressure Claims

Mastercard has publicly denied any wrongdoing, stating that the company does not pressure gaming platforms to change their policies or restrict certain types of content. The payment processor maintains that it simply follows standard industry practices and regulatory requirements when working with merchants.

According to Mastercard’s official statement, the company works collaboratively with all partners to ensure compliance with financial regulations and industry standards. They emphasize that their role is to facilitate secure payments rather than dictate content policies to gaming platforms.

The payment company has also highlighted its commitment to supporting the gaming industry and maintaining positive relationships with platform operators. Mastercard officials stress that they value their partnerships with gaming companies and want to continue providing reliable payment services.

Steam Platform Shares Different Account

Valve Corporation, the company behind the Steam gaming platform, has presented a contrasting narrative regarding its controversy with Mastercard. According to Valve’s version of events, they experienced pressure from Mastercard regarding certain games and content available on their platform.

Valve stated, “Mastercard did not communicate with Valve directly, despite our request to do so. Mastercard communicated with payment processors and their acquiring banks. Payment processors communicated this with Valve, and we replied by outlining Steam’s policy since 2018 of attempting to distribute games that are legal for distribution.”

The gaming platform maintains that these interactions went beyond normal business discussions and crossed into territory where payment processors were attempting to influence content decisions. Valve argues that such pressure threatens the independence of gaming platforms and their ability to serve diverse gaming communities. Valve said that payment processors rejected its response, citing the “risk to the Mastercard brand.” They referred to a Mastercard rule that prohibits “illegal or brand-damaging transactions.”

Broader Impact on Gaming Ecosystem

The dispute highlights broader issues within Mastercard’s gaming policy framework and how payment companies interact with digital entertainment platforms. Gaming industry experts note that payment processors wield significant influence over online platforms due to their control over transaction processing.

The payment pressure on the gaming platforms extends beyond just Mastercard and Steam, potentially affecting the entire gaming ecosystem. Other gaming platforms are closely watching this dispute as it could set precedents for future interactions with payment processors.

The controversy has prompted discussions about the need for clearer guidelines regarding the relationship between payment companies and content platforms. Some industry advocates are calling for regulatory clarity to prevent payment processors from overstepping their intended role.