ACH Forms

R07 ACH return code: Authorization Revoked by Customer

What R07 means

The customer had authorized the payments, then cancelled that authorization and told their bank.

Checked against 6 sources. Last reviewed .

R07 key facts

Official title Authorization Revoked by Customer
Returned by Receiving bank (RDFI)
Time frame 60 calendar days
The receiving bank can send the return for up to 60 calendar days after the payment settled. It first gets a signed Written Statement of Unauthorized Debit from the account holder, then must send the return within six banking days of finishing its review.
Applies to Consumer accounts
Can you send it again? No. A payment returned as unauthorized may not be sent again. A new payment needs a new authorization from the account holder.
Type of return Standard return. Counts toward your unauthorized return rate. Nacha's limit is 0.5% of your debits.
Written statement The bank needs a signed Written Statement of Unauthorized Debit from the account holder.

Why R07 happens

  • The customer cancelled a subscription or service, but the payments kept running.
  • A cancellation was received but not processed before the next payment.
  • The customer withdrew permission after a dispute.

What to do next

If you sent the payment

  1. Stop all further payments from this account at once.
  2. Check your records for the cancellation and fix the process that missed it.
  3. Do not send the payment again. If the customer wants to continue, get a new signed authorization.

If you got the notice about your own account

  1. Tell the business in writing that you are cancelling, in the way the authorization form describes.
  2. Tell your bank as soon as you see the payment. Your bank can send it back through the ACH network for 60 days after it was taken. Federal law (Regulation E) also lets you report it up to 60 days after the bank sent the statement that first shows it.
  3. Your bank will ask you to sign a Written Statement of Unauthorized Debit.

Got a return file from your bank? Open it in the ACH file viewer to see the code next to each payment.

Questions and answers

What is the difference between R07 and R08?

R07 means the customer cancelled the whole authorization, so no more payments may be taken. R08 means the customer asked the bank to stop a particular payment. R07 counts as an unauthorized return. R08 does not.

Sources

  1. ACH Network Risk and Enforcement Topics (return rates, reinitiation), Nacha
  2. Originator Essentials, Nacha Risk Management Advisory Group
  3. FedGlobal ACH Payments Origination Manual, Federal Reserve Financial Services
  4. 2024 ACH Quick Reference Guide, EPCOR
  5. 2024 ACH Quick Reference Guide for Corporate Users, EPCOR
  6. 12 CFR 1005.11, Procedures for resolving errors (Regulation E), Consumer Financial Protection Bureau

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General information, not legal or financial advice. Rules change and banks set their own requirements. Check with your bank before you act. ACH Forms is not affiliated with Nacha.