Reuters reported a few days ago that Visa had filed a protest with the US authorities accusing India of giving its native payment network RuPay excessive favouritism. We also explain why Visa has ants in its trousers. The Synopsis Before we get started, here's a quick rundown of how credit card transactions operate. Assume you go to the supermarket and purchase a package of biscuits. You don't have any money with you. So you opt to pay for it using your debit/credit card. When you swipe your card at a point-of-sale machine, a wonderful dance starts. In an effort to relocate money, your bank contacts the shop owner's bank. The merchant discount rate is a minor fee charged by the business owner's bank for being a willing participant. It can't, however, keep everything to itself. It must divide a portion of the profits with another middleman who assists in the payment process. Visa or Mastercard are the intermediaries in this case. And, since the business owner has gai...