Aadhaar Enabled Payment System (AEPS) has revolutionized (AEPS Integration) digital transactions in India, enabling merchants to accept cashless payments seamlessly. However, integrating AEPS is just the first step—monitoring the right reports is crucial for maximizing earnings, tracking transactions, and minimizing chargebacks.
In this guide, we’ll break down the essential reports merchants should keep an eye on after AEPS integration, ensuring smooth operations and financial transparency.
Why Monitoring AEPS Reports is Crucial
AEPS simplifies banking for millions, but without proper oversight, merchants risk revenue leaks, transaction disputes, and compliance issues. By regularly analyzing key reports, businesses can:
-
Track earnings accurately
-
Identify failed or fraudulent transactions
-
Reduce chargebacks and disputes
-
Optimize operational efficiency
Let’s dive into the three most critical reports merchants should prioritize.
1. Earnings Report: Tracking Revenue and Commissions
What It Includes
The Earnings Report provides a breakdown of:
-
Successful transactions (with amounts)
-
Commission earned per transaction
-
Daily, weekly, or monthly revenue trends
-
Settlement status (whether funds are credited to the bank)
Why It Matters
-
Ensures correct commission payouts (AEPS transactions earn small fees per transaction).
-
Helps detect discrepancies (e.g., missing settlements due to bank delays).
-
Aids financial forecasting by identifying peak transaction periods.
Example Scenario
A merchant notices a 20% drop in earnings despite steady transactions. Upon checking the report, they find that several transactions weren’t settled due to a technical glitch. Early detection allows them to resolve the issue with their payment provider.
2. Transaction Report: Monitoring Success & Failure Rates
What It Includes
The Transaction Report logs:
-
Date, time, and amount of each transaction
-
Transaction status (success/failed)
-
Customer Aadhaar number (masked for security)
-
Reason for failure (if any)
Why It Matters
-
Identifies system errors (e.g., biometric mismatches, bank server downtime).
-
Prevents fraud (e.g., repeated failed attempts from the same Aadhaar).
-
Improves customer experience by addressing frequent failure causes.
Example Scenario
A merchant sees a high failure rate for transactions above ₹5,000. The report reveals that most failures occur due to daily withdrawal limits. They adjust their service terms to inform customers beforehand, reducing disputes.
3. Chargeback Report: Minimizing Disputes and Losses
What It Includes
The Chargeback Report tracks:
-
Disputed transactions (customer claims of unauthorized debits)
-
Reason for chargeback (e.g., “transaction not recognized”)
-
Resolution status (won/lost/pending)
-
Amount deducted due to chargebacks
Why It Matters
-
Excessive chargebacks hurt profitability (banks may penalize merchants).
-
Helps detect fraud or system flaws (e.g., duplicate transactions).
-
Ensures compliance with dispute resolution policies.
Example Scenario
A merchant notices 5 chargebacks in a week for the same customer. The report shows that the customer’s biometric was used at multiple locations within minutes—indicating identity theft. The merchant flags the account and prevents further fraud.
Best Practices for Managing AEPS Reports
-
Review Reports Daily – Catch issues early before they escalate.
-
Automate Alerts – Set up notifications for high-value transactions or chargebacks.
-
Reconcile with Bank Statements – Ensure all settlements match recorded transactions.
-
Train Staff – Help employees understand common transaction failures and dispute processes.
Frequently Asked Questions (FAQs)
1. How often should I check AEPS reports?
Ideally, daily monitoring is best, but at minimum, review weekly to avoid major discrepancies.
2. What should I do if I notice missing settlements?
Contact your payment gateway provider or bank with transaction references for resolution.
3. Can chargebacks be reversed?
Yes, if you provide valid proof (e.g., customer authorization via biometric logs), you can dispute chargebacks.
4. Why do some AEPS transactions fail?
Common reasons include:
-
Incorrect biometric data
-
Bank server issues
-
Exceeding daily transaction limits
Conclusion
Integrating AEPS is a game-changer for merchants, but without proper report monitoring, businesses risk revenue loss, fraud, and compliance troubles. By keeping a close eye on Earnings, Transaction, and Chargeback Reports, merchants can optimize operations, reduce risks, and maximize profits.
Start tracking these reports today to stay ahead in the digital payments landscape!
Disclaimer
This article is for educational purposes only. If you have any concerns regarding the content, please refer to our DMCA policy for post removal requests. Always verify financial practices with your payment provider or a professional advisor.