Technical
ARN (Acquirer Reference Number)
Definition
ARN (Acquirer Reference Number) a unique identifier assigned to each card transaction by the acquirer, used for tracking transactions through the card network system. Essential for tracing refunds, investigating disputes, and reconciliation. Also called transaction reference number. The ARN follows the transaction through its entire lifecycle from authorization to settlement.
Related Terms
Authorization
The process of requesting approval for a card transaction from the issuing bank. The authorization request includes card details, amount, and merchant information. The issuer checks available credit/funds, fraud rules, and account status before responding with an approval or decline. Authorization is the first step - funds are reserved but not transferred until capture.
Settlement
The process of transferring funds from captured transactions to the merchant's bank account. Settlement typically occurs in batches (daily or weekly). Timing varies by acquirer and merchant agreement - next day, T+2, or weekly. Net settlement deducts fees and chargebacks from gross volume. Faster settlement improves cash flow but may come with higher costs.
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