What is the primary use of an acquirer's reference number (ARN)?

The primary use of an acquirer's reference number (ARN) is to track transactions through a payment system. The ARN is a unique identifier assigned to each transaction processed by an acquirer, allowing for efficient tracking and management of an individual transaction as it moves through various stages of processing. This tracking capability is essential for various functions, including dispute resolution and transaction history reconciliation. By having a dedicated tracking number, businesses and payment processors can easily locate transaction details when needed.

The importance of this functionality is evident in situations such as chargebacks or inquiries about a transaction. When an issue arises, having the ARN readily available streamlines the process of finding pertinent information about the transaction in question, thus enhancing operational efficiency.

While facilitating electronic funds transfers, identifying customer accounts in collections, and regulating payment authorization processes are all relevant to the broader payment ecosystem, they do not directly align with the primary role of the ARN. Instead, the ARN specifically serves as a means to trace and manage transactions, making it invaluable for accurate record-keeping and audits within the payment processing framework.