What is an Acquirer's Reference Number (ARN)?

The Acquirer's Reference Number (ARN) serves as an identification number that is critical in the clearing and settlement process of payment transactions. This unique number is assigned to each transaction by the acquiring bank and is used to track that specific transaction throughout its lifecycle in the payment processing system. It plays a vital role in facilitating communication between financial institutions, especially when it comes to transactions that require follow-up, refunds, or investigations related to disputes.

Because of its role in clearing records, the ARN allows stakeholders to retrieve transaction details, helping in reconciling accounts and ensuring that the funds are correctly attributed to the involved parties. In payment processing, having a reliable reference number is essential for maintaining accurate records and resolving any issues that may arise.

The other options do not accurately describe the ARN's function. For example, while the ARN does pertain to transaction identification, it is not specific to consumers or merchants, nor does it indicate fraud levels. Instead, it focuses on the transaction as part of the processing and settlement workflow.