Think of it from the player's point of view. If you send someone not-quite-trusted or of fallible security $10 worth of btc, then the worst that can happen is you never see it again. If you give them your cc (or worse, debit card) number, then there's a chance of unauthorized charges to deal with later.
True, but a trusted third party payment processor is the best of both worlds.
They may not have the passwords to these wallets.
Game developer here!
Actually the bitcoin secret key is stored in the computer of the player so with the public address and the secret key they can transfer money using bitcoin protocol directly. Even without the game.
> For every new player in the game we create a game wallet. This is a standard Bitcoin wallet you can deposit funds via QR codes and transfer to any wallet service.
This does not check. They refuse to hold cc data on a security promise but are willing to host bitcoin wallets. Bitcoin laying around on game servers sounds like a good target to me.
They would be much better using a third party for cc payments, regarding security at least.