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It depends on whether it is a credit card or a debit card.

For a debit card, the payment hub will contact the core banking system for each stage - first a funds authorisation request and then the funds clearing request (which some banks call deal completion).

Typically, the core banking system does not manage revolving credit accounts, so the core system will not be involved in authorising and clearing credit card transactions.

Good points Andrew. On replacing physical cash with digital cash, clearly it doesn't solve financial inclusion but it can make it worse if you require KYC, AML and a bank account.

This is about widely available digital cash, it is not about wholesale and it is not about bank accounts. m-pesa in Africa, predominantly Kenya, is account based mobile money. The digital cash will only replace physical cash if it is anonymous and if it can be used offline with immediate finality. So forget blockchain based payments fo any large country, clearing cannot be on a blockchain, though minting and settlement could be. As this has to include the unbanked, forget KYC and AML. This means there will have to be caps on the size of payment and balances in wallets.