What Is a Reference Number, and How Does It Work?

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

What Is a Reference Number?

A reference number is a unique identifier assigned to any financial transaction including those made using a credit or debit card. The reference number is created technologically and designated for a single transaction. A reference number helps an institution identify transactions in records and electronic databases used to monitor transactions associated with a card. Reference numbers from each transaction on a customer’s account are usually included in a cardholder’s monthly statement.

Key Takeaways

• Reference numbers are identifiers (a group of random numbers and/or letters) assigned to credit or debit transactions.
• These are used to track transactions and make it easier and quicker for customer service reps.
• Reference numbers are often used in correspondence about a credit or debit transaction.
• Other types of reference numbers can include those on credit cards or loan applications.
• They can also include those given by merchants during a transaction, or those given by customer service reps when a customer inquires about a product or service.

Understanding a Reference Number

Reference numbers are used by financial institutions to make compiling and queries of millions of transactions easier to manage. They are generated once a transaction is completed and are made up of a combination of random letters and numbers. Reference numbers are generally assigned to transactions such as certain deposits and withdrawals, bank transfers, wire transfers, and bill payments.

These numbers are used in both printed statements and online banking statements that a cardholder can access at any time. Credit card statements provide a summary of all of the transactions a cardholder makes during a given time period. Regulations require card companies to provide cardholders with instructions concerning the contents of the statement, as well as how to read and understand the different sections.

Some companies may use the term file number when referring to a reference number.

Special Considerations

Reference numbers make it easier for customers to interact with customer service representatives. Consumers can communicate questionable transactions to the representative, who can then investigate them through their database to obtain more details about the transactions. For example, a customer may simply reference “transaction 123456” instead of using the store and date of the transaction. The descriptive elements of the transaction are maintained in the transaction metadata in the card company’s database.

Each transaction’s reference number provides a valuable identifier to help make the resolution process much faster for all transaction queries and any fraudulent charges. Card companies can track comprehensive information about a transaction by its reference number. With the reference number, the company can identify the merchant or seller, as well as the card terminal or terminal owner that was used to execute the transaction.

If a card has been compromised or used for fraudulent purposes, card companies can void the charges by using the reference number in the pending phase.

Types of Reference Numbers

In some cases, customer service inquiries and calls may also generate a reference number. For example, if a customer calls to inquire about a product or service, the customer service representative may give that consumer a reference number to quote if they call back at a future date in order to complete the transaction. Reference numbers also provide operational transaction details for merchants. Merchants can use reference numbers to identify and track every transaction made by their business.

Reference numbers may also be assigned to a credit card or loan application. The location of the reference number, in this case, varies depending on the issuer or provider. Typically, it’s at the end of an application form or provided in an email or letter from the company. Most reference numbers will be found at the top of the application submission form which shows up after submitting an application. It’s also usually quoted at the top of a follow-up email or letter from the company. Many companies provide reference numbers for credit cards or loans, while some do not.

A booking reference number is used by airlines, hotels, travel agents, and online travel companies. These unique codes are specific to an individual travel reservation. These codes are also called confirmation numbers and show up on airline tickets and hotel reservation systems. If a customer wishes to change or cancel a reservation, the booking reference number will help the customer service representative identify the reservation details in the system.

What Is a UPS Reference Number?

A United Parcel Service (UPS) reference number is also called a UPS pickup reference number. One or more parties to the shipment will use this series of characters or numbers to help UPS Freight correctly identify the shipment. The carrier can designate the reference number from various sources, including the return authorization number.

What Is a FedEx Reference Number?

While many customers will track a FedEx (FDX) package with a tracking number, a reference number provides an alternative way for customers to locate their packages. Examples of a FedEx reference number include a purchase order (PO) number, customer account number, invoice number, and bill of lading number. Having access to one or more of these numbers helps customers track the status of their shipment and verify delivery.

What Is a Fed Reference Number?

Banks use federal reference numbers to track wire transfers of money. The receipt for the wire transfer will include a section labeled "Fed Reference" or "Federal Reference." This is where you will find a unique series of numbers that you can use to investigate and track the electronic wire transfer from the initiating bank to the receiving bank.