How to choose an AEPS API provider: 10 things to check

If you are planning to start an AEPS business, one decision will be more important than almost any other – selecting an AEPS API provider. Choose well and your retailers get smooth transactions, quick settlements and less headaches. Pick wrong and you are fielding angry calls all day about failed withdrawals and money stuck.

The problem is, there are dozens of companies offering AEPS API services today and almost all of them claim they are the best. So how do you tell the real from the not-real? 

Here is a guide to ten practical things to check before you sign with anyone. Explore our AEPS API solutions for fintech businesses. We’ll also discuss how to get an AEPS API, how to become an AEPS service provider, and what to look for when looking for a trusted recharge API provider in India. We’ve kept the language simple so no tech background is required to keep up.

Before we get started with a quick note - we build AEPS, DMT, micro atm and digital wallet platforms at Code crafts Digisoft, so we see this decision from the provider's side too. Before choosing an AEPS API provider, it is helpful to understand what AEPS is and how it works for retailers.

What Is an AEPS API Provider?

AEPS API is a software which connects your app/website to the banking network for your retailers to provide AEPS services such as cash withdrawal, balance inquiry and mini statements. The AEPS API provider is the company that provides this connection.

Imagine the provider as a bridge between yourself and the banks. Your retailers are on your portal or app. The provider’s system then takes the request to NPCI and the customer’s bank and retrieves the result behind the scenes. If that bridge is shaky, every transaction on your platform feels it. 

That’s why you can’t judge a provider by cost alone. At Code crafts Digisoft, that’s exactly what we build, so we know how much is riding on it. Let’s get to the crux of the matter. 

How to Choose an AEPS API Provider: 10 Things to Check

Here are the ten things we'd check, in the order that matters most.

1. Licence, Bank Tie-Up and Compliance

Start with the basics: who’s actually behind the service? AEPS operates on banking rails and a reliable provider will typically partner with a bank or authorized partner, according to the rules issued by NPCI and RBI. Ask them to tell you in simple terms how their setup works and which bank or partner they connect to. If they answer vaguely, or try to avoid the question, then this is your first red flag. Also ask for their company registration details (and GST number if they have one) so you know you are dealing with a real business. 

2. Security

AEPS is about Aadhaar numbers, fingerprints and money. Security cannot be an afterthought. Ask the provider about their data protection for data in transit and at rest, whether or not they encrypt it and whether each transaction is properly logged. Ensure that the platform works only with certified biometric devices. If a provider is not serious about security, it puts your retailers, your customers and your business at risk. We build bank-grade security into our fintech software development process at Code crafts Digisoft. We encourage you to ask any fintech provider, including ourselves, about their security. 

3. Uptime and Transaction Success Rate

A cheap provider that messes up one transaction in five is hugely more expensive than it appears. Failed transactions = unhappy customers, more support work, lost trust. Find out what their average uptime and success rate is, and their process for failed or pending transactions and refunds. If possible, try out a few test transactions before you actually commit to them. 

4. Commission and Pricing

Don't look only at the headline commission. Ask for the complete AEPS commission chart for every slab, and find out how it's shared between you, your distributors and your retailers. Check for setup fees, monthly charges, API charges and anything else that might not be on the first page of the offer. Then get all of it in writing. A good provider is open about money. A bad one tells you the good news and hides the rest.

5. API Documentation and Integration

In case you have a developer, ask him to read the documentation prior to making a decision. Good API documentation should be clear, up-to-date and include code examples. Make sure that there is a test (sandbox) environment, where your team will be able to play around without spending real money. In case you do not have a developer, ask if the provider provides you with an already developed application/portal. Proper AEPS API integration can save you weeks of effort. Learn more about the essential AEPS software features for fintech businesses.

6. Services Beyond AEPS

It is obvious that most retailers seek more than one service through their counters. See if the solution provider offers such services as DMT (money transfer), micro ATM, bill payments, recharge, and digital wallet. The integration of all these services in one solution will result in one login, one wallet, and one customer care support system. Code crafts Digisoft, for instance, provides AEPS, DMT, micro ATM, and a digital wallet, along with B2B, B2C, and reseller portals. Thus, you can integrate different services gradually.

7. Settlement and Wallet Management

The cash is disbursed first and the wallet gets credited later; hence, the speed of the entire process counts. Find out how long it takes for the amount to get credited once the transaction is successful and how fast the funds can be moved from the wallet to the bank. See whether there are any cut-off times or days where the entire process gets delayed. Find out about the reconciliation process as well, so that it does not become a monthly task.

8. Customer and Technical Support

It’s only a matter of time before something goes wrong. A transaction gets delayed, a retailer gets locked out or a bank has downtime. The important thing is how quickly your provider responds. Inquire about their working hours, modes of contact (phone, WhatsApp or email) and whether or not you’ll be talking to someone who knows what he or she is doing. 24/7 technical support is very important, especially if your retailers operate late or over the weekend, which is something we offer at Code crafts Digisoft.

9. Dashboard, Reports and White Label Options

With growing needs in your business, a dashboard is going to be something that you will need. Make sure that you look for simple reports, complete transaction history, commission management, and distribution and retail management. Multi-level panels offered by Code crafts Digisoft are specifically designed for distributors, retailers, and end users, and include commission management. If you plan to build your own brand, then go for white label AEPS, where the whole platform is branded under your name, logo, and domain.

10. Reputation and Track Record

Lastly, do some traditional homework. What is the experience of the company in years? How many projects or clients does it have under its belt? Ask for references and speak with a couple of its clients. Also, check online reviews, but not only them, since some of them may have been written by the company itself. In addition, study the agreement and pay attention to the notice period, the procedure for return and your data protection after termination of cooperation. Code crafts Digisoft has over 5 years of experience and 52+ projects, so feel free to ask all these questions to us.

Questions to Ask Before You Sign

Keep this list handy while talking to your provider, in case these questions are answered in a clear manner, you are on the right path:

• Who are you associated with, bank or partner? Could you give some information regarding your organization?
• How do you ensure security?
• What is your success rate and how are the failed transactions managed?
• What is the complete table of commissions and are there any extra fees?
• Can you provide me with API documentation as well as a test environment?
• What is the speed of settlement and are there any cut-off times?
• What sort of support will I get, during what hours?
• Can I have a panel designed with my branding?

How to Get an AEPS API

It is not as difficult as it may appear to get the AEPS API. Most companies follow these procedures:

Set your own requirements. Which of the following would you choose – start with a handful of retailers, distributor network or a white label platform with your own brand? Your requirements would determine what type of provider you are looking for.

1. Select 3 or 4 providers based on your research criteria listed above.
2. Discuss with them and request to see their product demo.
3. Prepare and send them the required documentation, which includes your Aadhaar, PAN, in case you have a business, GST (if applicable), bank account and its proofs.
4. Sign the contract and get credentials. Usually, you will receive API keys. Some providers might require your server IP addresses to be registered.
5. Integrate and test the software. Connect the API with your website/application and test it in the test environment first.
6. Launch in a small pilot. Try the new payment solution with a handful of retailers, make fixes and expand after that.

Alternatively, you might choose a provider who provides you with a ready-made portal and app and helps you to start immediately. We invite you to contact us via WhatsApp

How to Become an AEPS Service Provider

There are a few definitions associated with "AEPS service provider," and let's make the distinction. Here are three possible ways to get into the business:

1. Retailer path: you become a client of some AEPS provider, complete the KYC, purchase certified fingerprint scanner and start providing services to customers in your shop. This is the fastest and least costly entry point.
2. Distributor or white-label partner path: you pick up some AEPS platform that exists on the market offered by some API provider, apply your brand to it and create your own network of retailers. You get commissions from transactions of your network. This is how the majority of fintech startups emerge.
3. Full-scale provider path: you develop the whole system yourself, with your ties to banks and necessary permissions. This requires huge investment, technical team and a lot of compliance work, so it works only for funded enterprises.

For most of people, the second path seems to be the best. You get your own business and brand while not building the ties with banks from scratch. The multi-level reseller portals provided by Code crafts Digisoft are built exactly for such networks. Regulations and requirements may change, so please confirm the latest ones with

Red Flags to Watch Out For

Some red flags keep popping up among untrustworthy and risky partners. Watch out for:

• They do not disclose any information about the company and its office.
• They offer guaranteed high earnings or too high commissions.
• They demand a large and non-refundable payment upfront without anything in return.
• There is no documentation, demo, and test environment provided.
• The support can be reached via just one phone number and it is not answered.
• They cannot explain how the settlement process works or how the failures will be dealt with.
• They try to make you sign up quickly or the contract looks suspicious.
• A real partner does not want to discuss his/her experience.

If you find two or more of the listed signs, leave this partner and move to the next one on your list.

About Code crafts Digisoft Pvt. Ltd.

Code crafts Digisoft Pvt. Ltd. is a software developing & fintech company located in Jaipur, Rajasthan. With over 5 years of experience and 52+ projects delivered, the company assists startups, SMB and enterprises to develop secure and scalable digital products.

• Do you want to enter the world of fintech? Code crafts Digisoft is a place for you. Their pre-made solutions for startups and enterprises include:
• AEPS (Account Enablement Payment System): cash withdrawal, balance inquiry and other services based on Aadhaar card and banking.
• DMT (Domestic Money Transfer): instant money transferring for your customers
• Micro ATM (Automated Teller Machine): card-based financial services right from the retail point
• Digital wallet: secure wallet for payments and settlements
• B2B, B2C, and reseller portals: multiple-level platforms with commission calculation for distributor, retailer and final customer

In addition, they also develop websites, mobile applications and provide a wide range of custom software development and digital marketing services. They highly value bank-level security, user-friendly dashboards and 24/7 technical support for all clients' businesses.

Conclusion

Selecting an AEPS API provider may be likened to selecting a business partner. You are going to work with them on a daily basis, hence the need to spend some time getting the best. Consider the license and bank tie up, security, success ratio, commission, documentation, services, settlement, support, dashboard and reputation, among other considerations. And do not forget the red flags.

Are you ready to venture into AEPS business? Then consider working with a partner who is transparent on their pricing policy, and provides secure and timely solutions whenever issues arise. Code crafts Digisoft develops fintech platforms including AEPS, DMT, micro ATM and digital wallets for retailers, distributors and resellers.

Ready for a discussion? Contact the Code crafts Digisoft team through WhatsApp or the contact page.