R07

What Is ACH Return Code R07?

ACH return codes are used to identify the reason an ACH payment has been returned by the recipient's bank. They make it easier for originating and receiving financial institutions to spot and communicate payment failures.

ACH Return Code R07, also known as "Customer Revoked Authorization," is a standard code used in Automated Clearing House (ACH) transactions.

How To Address ACH Return Code R07

Nacha prescribes separate rules for handling each return code since each one represents a unique scenario. ODFIs (Originating Depository Financial Institutions) and RDFIs (Receiving Depository Financial Institutions) are responsible for handling ACH return codes according to these rules.

R07 indicates that a customer who had previously authorized ACH transactions has since revoked authorization from the originator of the transaction. The originating depository financial institution (ODFI) must return the transaction within 60 calendar days.

If you encounter R07, you can try the following to address it:

• Immediately stop any other recurring transactions for this customer to prevent them from also being returned
• Contact your customer to learn more about why they revoked authorization for the transaction, and, if applicable, to collect alternate banking information for future payments
• If applicable, as your customer to call their financial institution to re-authorize your transactions

What Is An ACH Return Code?

ACH return codes identify the reason an ACH payment was returned by the recipient's bank. They make it easier for originating and receiving financial institutions to spot and communicate payment failures. Each code begins with 'R' followed by a two digit number. ACH return codes are standardized and maintained by NACHA, the governing body for the ACH network.