Acquirer Reference Number (ARN) and Acquiring Bank

An Acquirer Reference Number (ARN) is a unique identifier used in credit card transactions. It is assigned when a transaction moves from the merchant's bank (acquirer) through the card network to the cardholder's bank (issuer). This number serves as a critical tool for tracking the movement of funds, whether for payments or refunds. Merchants and shoppers can use the ARN to follow the transaction's journey, with the shopper able to contact their bank using the ARN to trace specific payments or refunds. Merchants access the ARN through their customer areas or can request it from the shopper’s bank.

An Acquiring Bank, also known simply as an acquirer, is a financial institution responsible for processing credit and debit card payments on behalf of a merchant. This process involves not only the transmission of funds but also the crucial roles of underwriting and managing the merchant's account, providing necessary payment processing hardware and software, and ensuring compliance with card network regulations. Acquiring banks are licensed by the card networks to process these payments and might also partner with or act as payment processors themselves.

The role of an acquiring bank is pivotal in the payment value chain as it facilitates the acceptance of card payments for goods and services, making it essential for the functioning of modern commerce. They are responsible for receiving funds from card transactions and depositing them into merchant accounts. This includes managing the details and security of transactions, often working closely with payment service providers, such as Adyen, which offers acquiring services in various global markets including the U.S., Brazil, Hong Kong, Australia, and Europe.

Overall, the acquirer and the ARN play essential roles in ensuring the smooth processing of card transactions, maintaining the merchant’s financial operations, and providing a mechanism for tracking and verifying transactions across the payment network.