Acquirer Reference Number
Acquirer Reference Number (ARN) is a unique identifier assigned to a financial transaction by the or when it moves from the merchant's bank through the card scheme to the cardholder's issuing bank. It serves as a crucial reference in the payment ecosystem, facilitating communication and tracking throughout the transaction lifecycle.
The ARN is received by the cardholder's bank (issuer) in clearing messages that come from the acquirer after an authorized transaction has been confirmed by settlement. ARN allows parties involved, including merchants, card , and payment , to trace and investigate a specific transaction. In case of disputes, , or inquiries, ARN plays a crucial role in identifying and retrieving transaction details quickly. Cardholders contact their bank, which can use the ARN to track payments or refunds.
ARNs are typically 23-digit codes, though they can vary between 8-30 characters. This alphanumeric code contains structured information, including:
- Interchange Rate Indicator (IRI), showing the interchange calculation rules
- Acquirer Bank Identification Number (BIN)
- Processing date information using Julian date format (day of year)
- Item sequence number assigned by the acquirer for transaction identification
- Check digit for validation (similar to card number validation)
The processing date is strictly tied to the original transaction date and cannot exceed 30 calendar days from the transaction date according to card network requirements. Both online and offline transactions generate ARNs, ensuring a standardized identification method across various payment channels. Note that ARNs include check digits for validation, meaning some ARN codes may be invalid if the check digit doesn't match.
Efficient management of ARNs is imperative for streamlined transaction processing, dispute resolution, and maintaining transparency in the financial ecosystem.