R07 ACH Return Code: Authorization Revoked by Customer

What Causes ACH Return Code R07?

The R07 ACH return code means "Authorization Revoked by Customer" and indicates that a customer who previously gave permission for ACH transactions has formally withdrawn that authorization. This return requires the customer to provide a written statement under penalty of perjury to their bank, making it a serious legal declaration rather than a simple dispute.

R07 returns typically occur when customers become dissatisfied with service, want to cancel recurring payments, discover unauthorized modifications to payment terms, or experience disputes they cannot resolve directly with the merchant. The customer's bank has up to 60 calendar days from the settlement date to process this type of return, giving customers extended protection.

Can You Retry R07 Payments?

You cannot retry R07 payments with the existing authorization since the customer has formally revoked their permission. Any future ACH transactions require obtaining completely new authorization from the customer. Attempting to process payments without new authorization could result in additional returns and potential regulatory violations.

How to respond

An R07 return represents a formal authorization revocation that requires immediate cessation of all ACH transactions and direct customer contact to understand and resolve the underlying issue.

When receiving payments

Immediately Stop All Recurring Transactions Halt any scheduled or recurring payments to prevent additional returns and potential violations.
Contact Customer for Discussion Reach out to understand why they revoked authorization and attempt to resolve any underlying issues.
Document the Revocation Keep detailed records of the return and any customer communications for compliance purposes.

Obtain New Authorization if Resolved If issues are resolved, collect completely new authorization documentation before processing any future payments.

When sending payments

An R07 return on vendor payments indicates the vendor has formally revoked authorization for ACH transactions from your business. This requires immediate investigation as it may indicate a serious business relationship issue.

Contact the vendor immediately to understand why authorization was revoked
Review recent transactions and communications for any disputes or issues
Stop all scheduled payments to that vendor to prevent additional returns
Work to resolve underlying issues and obtain new authorization if the relationship continues

Email template

From: [Your Company Name] <[your-email]>
To: [Customer Name] <[customer-email]>
Subject: Important: Payment Authorization Status

Hi [Customer Name],

We received notice that you've revoked authorization for ACH payments from your account. We want to respect your decision and have immediately stopped all scheduled transactions.

If this was due to a concern or issue with our service, we'd appreciate the opportunity to discuss it and make things right. Could you please let us know if there's anything we can help resolve?

If you'd like to continue service with a different payment method, we're happy to work with you on alternative arrangements.

Thanks,

[Your Company Name]