What Happens Behind a Financial Transaction?
A Journey Through the Invisible Infrastructure That Powers the World
Every time you tap your card at a store, click “buy” on your phone, or hover your smartwatch over a POS terminal, you’re triggering a complex technological and operational chain. This system connects banks, processors, payment networks, security layers, and—more recently—immediate payment solutions. But what really happens behind the “magic” that occurs in just seconds?
At Kuvasz Solutions, with over 17 years of experience in the payments industry, we understand that what seems like a simple interaction is, in reality, a precise choreography of multiple financial and technological players.
Step One: The Payment Device
It all begins with the payment device—whether a POS terminal, ATM, mobile app, or digital wallet. This device captures the payment method details—card, QR code, phone number—and sends them to a Payment Service Provider (PSP) or processor. These are the actors Brizmo, our real-time payments platform, connects to—serving as the first bridge between merchants and the financial ecosystem.
The Processor and the Switch
The processor reviews the transaction and sends it to a financial switch. This centralized system routes the request to the correct issuer—the bank responsible for authorizing the transaction. At Kuvasz, we specialize in integrating and optimizing switch systems like BASE24 or BASE24-eps, trusted by major institutions across Latin America to ensure transaction availability and security.
The Core Banking System: Where Validation Happens
Once the switch sends the request to the issuing bank, the core banking system takes over. It checks for available funds, verifies the card status, scans for fraud alerts, and approves or declines the operation. Simultaneously, fraud engines—often AI-powered—run sophisticated rules to detect anomalies. Our proprietary solution, SmartIncident, plays a key role here, automating monitoring and operational incident response.
All in Seconds
As Lucas Souza, Innovation Manager at Kuvasz, explains:
“A modern transaction moves through multiple tech layers in milliseconds. It’s not just about speed—it must be secure, scalable, and increasingly personalized.”
Instant Payments: The New Era
With the rise of instant payment systems—like PIX in Brazil or Bre-B in Colombia—the processing landscape is evolving. Transactions are no longer handled in seconds, but milliseconds. Funds move directly between accounts using familiar identifiers like email addresses or mobile numbers.
Our platform Brizmo is already helping banks, cooperatives, and fintechs in Colombia connect seamlessly to clearinghouses and manage the entire lifecycle of these real-time transactions.
The Case of Colombia and Bre-B
The implementation of Bre-B is a landmark shift. As Christian Cepeda, CEO of Kuvasz, states:
“At Kuvasz, we’ve played a role in PIX and Chile’s TEF. Now with Brizmo, we are helping lead the payment transformation in Colombia. We know how to connect the dots—even when time is critical.”
Bre-B will enable full interoperability, the use of digital aliases, and a more seamless user experience. However, it also introduces challenges: regulatory compliance, technical resilience, fraud prevention, and user education.
Crypto, Open Banking, and What’s Next
Beyond traditional banking infrastructure, cryptocurrencies and open banking are gaining momentum. Networks like Ethereum or Bitcoin bring a decentralized trust model. At Kuvasz, we’re actively exploring how these technologies can be responsibly integrated into modern payment systems in a secure, regulated way.
More Than Just a Click
Next time you make a digital purchase, remember—behind the scenes are thousands of lines of code and countless decisions being executed in real time. The financial infrastructure we rely on is a living, evolving network, and at Kuvasz, we’re proud to be a key part of the system that keeps it running—driven by innovation and committed to security.
If you’re part of a financial institution in Colombia or Latin America preparing for real-time payments integration, we invite you to explore Brizmo. It’s time to transform your transactions.
