If something isn't illegal it is legal, and therefore they should be allowing payment for it.
Otherwise, they are under no obligation (or protection!).
We just had a demonstration that the two biggest payment processors, together controlling the vast majority of credit card payments, made the same policy change at the same time and in the process completely suppressed many people's businesses.
Treat them as an anti-consumer oligopoly and regulate accordingly.
A bank can't merely process any transaction that comes its way. You need to know who the parties are, you need to check they aren't on a prohibited list, or in a prohibited country/region. You need to know the purpose of the transaction (to pick up money laundering, or drug/terrorism financing).
It's indeed ridiculous that you need to get a loan just to be able to pay with your own money. At least here in Europe most "credit cards" are actually debit cards. Because we really frown on loans (the best credit rating is for the person who has never even needed to take out a loan)
> ...and crypto is pretty useless as a payment method these days due to slow processing and high value fluctuations.
That is not true. For example using USDT on Polygon is cheap (~0.00 USD fee), fast (a few seconds) and not volatile (because its value is tied to USD). There are other options too, with a slightly different set of tradeoffs.
The main problems of crypto are actually scams and illiteracy of the masses on how to use it. The situation is IMHO improving on both counts, but slowly.
Crypto != Bitcoin. Monero for example is relatively fast and stable with the additional benefit of full privacy and anonymity.
What they can't do is create a monopoly situation and continue to be that selective---because there is no other game in town, due to their own actions.
All credit card companies collectively have made themselves “the way” to do it; and they all moralize.
