Credit Card Reconciliation
for
Internet Enabled Airlines
A solution by
Aerosoft Systems Pvt. Ltd., Pune
Visit us : www.aerosoftsystems.com

Background
Current Scenario:
“Airlines need to reconcile the on-line sale, payment advices and Bank
collections on daily basis at a transactional level to plug revenue leakages”
Current Trends:
 Airlines are increasingly pushing customers from offline to online
 Portals provide airlines a direct business channel that they use to
build loyalty with customers
 Airlines are bypassing their travel agents in order to lower their cost
of acquisition
 Cost of sales are being further minimized by achieving seamless
integration amongst all systems involved
November 6, 2009 Aerosoft Systems Pvt. Ltd., Pune 2

What does an merchant need?
Topmost concerns for an Airline include
Sale realization in the bank in due time
Ability to identify FOREX losses/gains
Tight fail-safe Chargeback management
November 6, 2009 Aerosoft Systems Pvt. Ltd., Pune 3

Credit Card Reconciliation
How can one do it?
Given the flow of data and e-money in a credit card transaction, reconciliation
can be carried out in two stages.
Sale (Portal) - Remittance (PG) Reconciliation
• A transaction level match is made between each of the sale transaction’s
gross amount against the gross remittance amount. Verify the discount
rate (commission) applied, and conversion rate applied
• Verify net receivable(s) by taking into consideration the chargeback’s and
chargeback reversals.
Remittance (PG) - Collection (Bank) Reconciliation
• On a daily basis match the net receivable amount with the actual amount
deposited in the designated Bank account(s) for the given period.
November 6, 2009 Aerosoft Systems Pvt. Ltd., Pune 4

Aerosoft System’s CCR System
The system inputs the sale advice the portal generates, the payment
advice that the payment gateway generates and the bank statement that the
bank account generates.
The system carries out financial reconciliation for various types of discrepancies
at transaction level. Major exceptions raised include,
•Sale recorded but no (or different) remittance
• Inappropriate outward remittance, no cancellation transaction or sale ever.
•Losses due to unfavorable exchange rates
•Short Collection over remittance
November 6, 2009 Aerosoft Systems Pvt. Ltd., Pune 5

How does CCR help?
Monitoring of Chargeback’s and
Accounting Exchange Rates & Chargeback
Audit
Entries Commission Reversals Requirements
Capability to
PG’s involved Regulatory
Maintains handle RFI as
are charging audit
several ledger well as direct
the agreed requirements
accounts. chargeback by
commission are fulfilled
Interfaces with giving detailed
and right once the
most Financial audit trail to
exchange service is
ERP systems. manage
rates. adopted.
chargeback’s.
November 6, 2009 Aerosoft Systems Pvt. Ltd., Pune 6

Various Scenarios
INR 100.0 INR 100.0 INR 98.2
INR 100.0
INR 95.0 INR 93.3
100 100
90 90
80 80
70 Ideal Case 70 Short
60 60 Remittance
50 50
40 40
30 30
20 INR 1.8 20 INR 1.7
10 10
0 0
Sale Remittance Collection Commission Sale Remittance Collection Commission
INR 100.0 INR100.0 INR 5000 INR 4800 INR 4700
250
100 INR 90.0
90
200
80
Foreign
70 Short
Currency
60
Collection 150
USD 100 USD 100
50
40 100
30
20 50
INR 1.8 INR 100
10
0 0
Sale Remittance Collection Commission Sale Remittance Collection Commission
November 6, 2009 Aerosoft Systems Pvt. Ltd., Pune 7

PGP
Portal
Bank
Internet Cloud
Client Terminal R2 R3
Data Flow
Funds Flow R1
e-Reports CCR Server
Online Transaction
Credit Card Reconciliation System 8

Payment
Gateway Payment
Merchant Sale
Report Bank Gateway
File type:
Statement Report
Filetype: txt
xls
Filetype: Excel
File type:
pdf

Value Proposition - SaaS
Anytime Anywhere Access
•Persons responsible can access the system from anywhere at anytime.
Quicker customizations
•Aerosoft can roll out rapid development and enhancements as and when
demanded
Better Resource Utilization
•Resource requirements to handle the solution are minimal.
Lower Implementation time
•Shift from the traditional model – time saving all along.
On demand access to Aerosoft’s expertise
•Skilled resources will be able to help as and when required.
November 6, 2009 Aerosoft Systems Pvt. Ltd., Pune 14

Solution Benefits
Improved Lower Total Multiple
Boost to
Customer Cost of Currencies,
bottom line
Satisfaction Ownership PGs & Banks
Credit Card Reconciliation Service
November 6, 2009 Aerosoft Systems Pvt. Ltd., Pune 15

Questions ..