Is your game's payment partner a compliance expert?

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Is your game's payment partner a compliance expert?

April 22, 2024•5 min

Why you should care about compliance

Understanding and adhering to compliance regulations is essential in the dynamic world of game development. It safeguards your gaming business, fosters customer trust, and fuels sustainable growth. Prioritizing compliance across payment processing, taxation, user privacy, and data security helps you sell your games confidently. However, navigating this ever-evolving regulatory landscape requires a significant investment of resources, including personnel, time, and budget. Understanding and navigating the intricacies of compliance regulations is crucial for any game developer. Partnering with specialized compliance providers can streamline this process. These experts will ensure your games adhere to legal frameworks, fostering a secure and trustworthy environment for your players and ultimately strengthening your industry reputation. This blog post condenses key considerations into actionable insights, empowering you to efficiently evaluate current or potential providers. By outlining these crucial factors, we equip you to make informed decisions about your development needs.

Payment industry compliance

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PCI DSS You might encounter vendors displaying PCI DSS compliance badges as a game developer. Be aware that these badges may only sometimes reflect the full picture. Some companies outsource their PCI compliance to third-party services, while others might not hold the necessary certifications. To ensure true compliance, look for an Attestation of Compliance (AOC) issued by a Qualified Security Assessor (QSA) after an annual audit. This document verifies the vendor's adherence to PCI DSS standards. Reputable companies will readily share their AOC under a Mutual Non-Disclosure Agreement (MNDA) to demonstrate their commitment to data security. By taking these steps, you can confidently select vendors prioritizing your players' credit card security. PSD2 Compliance with PSD2 (Payment Services Directive 2) is crucial when evaluating payment providers. Here's how to assess a provider's PSD2 readiness:

Direct Inquiry: ask the provider about their adherence to PSD2 regulations.
Request documentation outlining their compliance measures.

Look for key features like:

Strong customer authentication (SCA) ensures secure user verification during purchases.
Open banking APIs: allows secure access to user financial data with their consent, potentially streamlining transactions.
Adherence to specific provisions: provider policy with details on addressing specific PSD2 requirements.

Following these steps, you can confidently choose a payment provider that aligns with the latest security regulations.

Protecting player data: your role in compliance

As a game developer, you understand the importance of safeguarding player data. While no single "compliance registry" can definitively verify a provider's adherence to regulations, responsible companies prioritize following local laws and implementing robust security measures. Here are some signs that a provider is committed to compliance:

Localization: Does the provider's website, tools, and checkout processes offer language options for different regions? If so, it indicates they cater to diverse user bases and might be familiar with regional regulations.
Currency Support: Does their payment system support local currencies? If yes, it's another clue that they may have experience operating in your target market.
Targeted Marketing: Look for disclaimers or targeted advertising that suggests the provider focuses on specific countries, indicating an understanding of the relevant regulations.

If the provider meets all the criteria above, it likely indicates that the provider is focused on specific locations and that the provider is, in fact, compliant. Running a business in specific regions requires that businesses comply with applicable laws governing consumer protection, personal data protection, and other local regulations based on its scope of services.

Beyond the basics

Dig deeper by reviewing the provider's policies and available tools:

Privacy policy: This document should clearly explain data collection practices, processing purposes, legal justification for data use, who receives the data, player rights regarding their information, and any specific rules concerning children's data.
Cookie policy: This should detail all cookies used on their platform, their purpose, how long they're stored, who owns them (first or third party), and provide transparency around user consent.
Cookie banner: It is crucial to have a clear and easy-to-understand banner informing users about cookies and their right to manage them. Look for voluntary consent options without pre-checked boxes.
Privacy settings: Players should have access to settings for managing cookies and other privacy preferences. Look for a "Do Not Sell My Personal Information" option in California.
Form transparency: If a form collects user data like email addresses, ensure the purpose is clear and a link to the privacy policy is readily available.

Don't hesitate to ask questions: Given the importance of data compliance, it's always a good idea to directly inquire with your current or potential provider about their practices. Asking questions about their policies, procedures, and resources demonstrates your commitment to player data protection.

Tax compliance

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Understanding a potential partner's tax compliance is crucial for game developers. Here's a breakdown of some key actions you can take:

Digging into public records of registered taxpayers (where available.) Public records can offer a glimpse into a company's tax registrations in the country. Without such registrations, tax compliance is not possible. However, access to such information varies by country.
Analyzing the purchase flow (limited scope.) You can use a test purchase of a digital product to evaluate the purchase process for basic indirect tax and fiscal compliance. However, this provides a narrow view and shouldn't be relied on solely.
Consulting tax advisors and legal counsel. Don't hesitate to consult tax advisors and seek legal advice. Confirming a company's tax compliance and addressing any potential issues in relevant territories is crucial.

Conclusion

By taking these steps, you can gain valuable insight into a potential partner's compliance, ensuring a smoother and more secure collaboration. Let Xsolla help guide you in crafting a business model that's as unique as your vision and facilitates your global success. Because when we understand your business and the markets you choose for expansion, you experience growth. With Xsolla as your international partner, that success has no limits. Whether you're ready to take the first or the next step in the evolution of your game business, reach out to one of Xsolla’s experts and learn how to improve and protect your gaming business.