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

The role of the Acquirer's Reference Number (ARN) is primarily to identify specific transactions in the processing of electronic payments. When a transaction is initiated, the ARN is generated and assigned to that transaction, creating a unique identifier for tracking purposes. This number allows banks, payment processors, and other financial institutions to reference and locate details about that particular transaction easily.

Using the ARN, stakeholders can track the status of transactions, whether they are pending, completed, or disputed. It helps in reconciling transactions and resolving any issues that may arise during the payment processing lifecycle. The use of the ARN streamlines communication between various parties involved in the payment process, such as different financial institutions and payment processors.

Understanding this role highlights the importance of the ARN in maintaining transparency and efficiency within payment systems, enabling accurate record-keeping and ensuring that all transactions are accounted for properly.