I wonder how this fits into antitrust laws if all payment processors start banning legal businesses, it in my opinion should fall under antitrust violations.
This is also how I felt about Apple's anti porn stance.
You block porn apps on the app store. You block custom browsers on the app store. So the only way to consume porn is to use Safari/WebKit. That seems anti-competitive to me.
I think that payment processors should be required to offer service to any legal business. If you do business on the internet you need a payment processor, and defacto need one in the real world. The fact that they can destroy a business on a whim shouldn't be legal.
It's not the payment processors' fault (but MasterCard and Visa's oligopoly does need to be shattered), it is the banks'. They (more specifically, the network of banks that handle most payment processing) are at the foundation (read, have a strangehold on) of every financial infrastructure, be it technological or human. If they deny service, non-crypto fintechs have no real recourse. Moral pearl clutching aside, the issue of fraud for these sort of services is also unsolved. That is why companies that service this particular vertical charge ridiculous fees. There needs to be a separate non-revocable class of payments (maybe something like Zelle) for these industries.