It's not clear to me from the post what level this is happening on.

I assume by "payment processor" that they are not talking about Visa et al themselves but their merchant services provider.

The alternative to this is to find a merchant services company that specializes in adult industry. Something like https://ccbill.com/ which is going to end up costing you (or your customers) somewhere around 30% on all payments on your entire platform.

It's likely easier to strong arm these providers as they are typically pretty risk averse.