ARN stands for Acquirer Reference Number, a unique identifier for credit card transactions.
Understanding the Acquirer Reference Number (ARN)
The ARN is a crucial piece of information for tracking the status of a credit card transaction as it moves between different banks. Here's a detailed breakdown:
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Definition: As the references state, the Acquirer Reference Number (ARN) is a unique number assigned to credit card transactions.
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Purpose: The primary purpose of an ARN is to allow parties involved in a transaction to track its progress. This is particularly useful when investigating:
- Captures
- Chargebacks
- Refunds
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How it Works: The ARN is generated when a transaction moves from the merchant's bank (the acquiring bank) to the cardholder's bank (the issuing bank). This handoff creates the need for a tracking number that both banks can use.
Using ARN to Track Transactions
The ARN becomes invaluable when a customer reports an issue, such as a missing refund or an unrecognized charge. Instead of relying solely on transaction dates and amounts, which can be prone to errors or similarities, the ARN provides a precise identifier.
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Scenario: Imagine a customer claims they never received a refund.
- The merchant can provide the ARN to their acquiring bank.
- The acquiring bank can then use the ARN to track the refund's journey to the issuing bank.
- The issuing bank can use the ARN to locate the refund within the customer's account history.
Key Takeaways
- The ARN is a unique transaction identifier.
- It is used to track the progress of credit card transactions between acquiring and issuing banks.
- It is particularly helpful in resolving disputes related to captures, chargebacks, and refunds.
