What Is an ARN (Acquirer Reference Number)

Learn about the role ARNs play in payment processing

An Acquirer Reference Number (ARN) is a unique 23-digit code assigned to card transactions on networks like Visa and Mastercard. It serves as a universal identifier that tracks a payment’s journey through the entire processing system, from the merchant’s bank (acquirer) to the customer’s bank (issuer) and across card networks.

Generated during transaction processing, ARNs start with specific prefixes indicating the card network (e.g., “7” for Visa, “8” or “2” for Mastercard). This code contains encoded details such as the acquiring bank, transaction timestamp, processing data, merchant information and card network identifiers.

Why ARNs Matter for Your Business

ARNs provide a standard, cross-network method for tracking payments, refunds and chargebacks. This single reference number simplifies investigation and resolution of transaction issues by giving merchants, banks, processors and customers a reliable way to verify payment status.

ARNs are particularly valuable for businesses operating internationally. Unlike platform-specific transaction IDs, ARNs work across currencies, payment methods, and banking systems, making them helpful for managing global transactions and improving operational transparency.

Understanding and utilising ARNs can help your business monitor transaction flow more precisely, reduce payment disputes and optimise reconciliation processes.

How Does an ARN Work?

When you make a card payment, an ARN is created. It tracks the transaction as it moves through the payment system from the merchant’s bank to the card network and then to your bank.

The ARN’s structure reveals important details:

Prefixes that identify card networks (e.g., “7” for Visa, “8” or “2” for Mastercard)

Digits that identify the acquiring bank

Digits that encode processing information such as date and time

This code stays with the transaction, allowing all parties (merchants, banks, processors and customers) to trace its progress through settlement, refunds or disputes.

For example, if you request a refund, the merchant’s bank assigns an ARN to that transaction. Sharing the ARN with your bank allows quick tracking of the refund’s status within the Visa or Mastercard system, reducing wait times from days to hours.

Transaction Transparency

ARNs provide clear visibility into payments, refunds and transfers across different banking systems. They connect separate payment networks, eliminating gaps and making it easier to monitor transactions.

This clarity is especially useful for businesses operating internationally. For instance, a marketplace using a payment services provider like Rapyd can accept payments globally while maintaining a detailed audit trail for every transaction.

Dispute Resolution

When disputes arise, ARNs simplify the process by identifying the exact transaction involved. This helps merchants and banks gather precise information and resolve chargebacks more quickly, significantly reducing investigation time.

If a customer claims a refund wasn’t received, the ARN lets support teams trace the refund’s entire journey from initiation by the acquiring bank to final posting in the customer’s account, speeding resolution and preventing unnecessary chargebacks.

Customer Assurance

Providing ARNs to customers increases trust by allowing them to track payments and refunds directly with their banks. This reduces inquiries and confusion, as customers can verify transaction details without contacting merchants.

For cross-border transactions or unfamiliar merchants, ARNs offer an added layer of confidence by making payment status transparent and accessible.

Where Can You Find an ARN?

Merchant Access

Merchants can locate ARNs through their payment processing platforms. Most providers display ARNs within their dashboards or transaction details. If the ARN is not visible, merchants can request it from their acquiring bank or payment processor, especially for refunds or disputed transactions.

Customer Access

Customers may find ARNs in bank statements, SMS or email notifications following card payments or refunds. Online banking portals and mobile apps often include ARNs in transaction details. Users of UPI or digital wallets like Google Pay or Paytm may also find ARNs in their payment history. If the ARN is not readily available, contacting the bank or payment app support with transaction information can help obtain it.

Best Practices for Tracking ARNs

Train merchant teams to locate ARNs promptly for faster dispute resolution and refunds.

Encourage customers to save payment notifications containing ARNs to aid in tracking transactions.

Educate customers on the role of ARNs in payment tracking and issue resolution to improve service interactions.

Common Uses of ARNs

ARNs play a critical role throughout the payment lifecycle—from tracking refunds to managing chargebacks and preventing fraud.

Refund Tracking

ARNs allow merchants to monitor refund status directly within payment systems. Sharing the ARN with customers lets them track refunds via their banks. When delays occur, the ARN speeds up investigation and resolution. For instance, a customer can provide the ARN to their bank, which then traces and confirms the refund status promptly.

Chargeback Management

ARNs simplify chargeback handling by providing detailed transaction records. Merchants use ARNs to verify transaction flows and gather evidence for disputing claims. When a chargeback arises, the ARN helps quickly collect necessary details from payment processors, supporting stronger defences against unfair claims and fraud.

Fraud Prevention

ARNs improve fraud detection through consistent tracking across payment systems, helping identify suspicious patterns. They support regulatory compliance by maintaining clear audit trails for anti-money laundering and know-your-customer checks. For example, banks and processors cross-reference ARNs to detect inconsistencies indicating potential fraud. This early detection is integral for reducing financial losses and maintaining secure payment environments.

ARN vs. Other Transaction Identifiers

ARNs serve as universal transaction identifiers recognised across the entire payment network. Unlike platform-specific Transaction IDs or Payment IDs, which only work within individual systems, ARNs provide a way to track and communicate between banks and payment providers.

Platform-specific IDs are usually accessible through payment processing dashboards. ARNs, however, may require merchants to request them from acquiring banks or processors, particularly for older transactions. Despite this, ARNs offer broader reach for resolving disputes and tracing payments across different systems.

Transaction and Payment IDs primarily support internal tracking within merchant platforms. ARNs track transactions throughout the payment ecosystem, from the acquiring bank, through card networks, to the issuing bank.

ARNs follow a 23-digit format that encodes details such as the acquiring bank, transaction date and processing information. Other identifiers vary in length and structure depending on the platform.

In dispute cases like chargebacks or refunds, ARNs allow merchants and banks to trace transactions comprehensively. This broad traceability is not available with platform-specific IDs alone, making ARNs essential for payment management.

Best Practices for Managing ARNs

Record-Keeping

To keep ARN data organised and accessible, integrate tracking into your accounting system or transaction database. Automatically link each ARN to its related transaction and use a consistent format to make searches and reporting faster. Regular backups help protect your records and reduce the risk of data loss. Having accurate ARN information on hand saves time when resolving disputes or investigating failed payments.

Communication

Sharing ARNs with customers can prevent unnecessary support requests. For refunds or disputed charges, include the ARN in confirmation emails or digital receipts so customers can track the transaction themselves. Train support staff to locate ARNs quickly and respond confidently to inquiries. Where possible, automate ARN notifications for actions like refunds to improve the customer experience and reduce friction.

Security

Although ARNs don’t contain sensitive financial data, handle them securely. Restrict access to authorised personnel and require strong authentication for systems storing ARNs. Encrypt ARN data both at rest and during transmission. Monitor access logs regularly to detect unauthorised activity. Train your team on the importance of ARN security and proper handling.

Implementing these practices within Rapyd or similar platforms improves payment operations.

The Digital Payment Fingerprint

Acquirer Reference Numbers (ARNs) act as a digital fingerprint for card transactions. Apart from providing universal tracking that enhances transparency and builds trust, ARNs benefit everyone in the payment flow.

For merchants, ARNs simplify access to transaction details, support refund processing and help strengthen chargeback responses. Banks rely on them to resolve disputes faster and detect fraud more effectively. Customers get clearer visibility into their transactions, reducing confusion and speeding up issue resolution.

Payment platforms like Rapyd use ARNs to improve operational visibility, reduce friction and enhance customer satisfaction across the payment journey.