R07: Customer Revoked Authorization Explained
The ACH R07 can only be returned on consumer accounts. ACH return code R07 indicates that the customer has revoked the authorization previously provided for the ACH debit. This return code applies to all SEC codes except ARC, BOC, POP, and RCK. An R07 entry may be returned by the Receiving Depository Financial Institution (RDFI) up to 60 calendar days following the settlement date.
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What is an ACH Return Code?
An ACH return code is a standardized code used to explain why an Automated Clearing House (ACH) transaction was returned by the receiving bank.
Codes are issued by the Receiving Depository Financial Institution (RDFI) and maintained by Nacha, the organization that governs the ACH Network. Certain codes may apply to consumer accounts, non-consumer (business) accounts, or both. These codes help banks, payment processors, and originators understand what went wrong during an ACH transaction so they can determine the appropriate next steps, such as retrying the payment, correcting information, or contacting the customer.
What Does R07 Mean?
ACH code R07 means that the account holder notified their bank that they are revoking authorization for ACH debits from a specific originator. Unlike a stop payment (R08), R07 is a full revocation. This means the originator no longer has permission to debit his account without new authorization.
R07 vs R08: Revocation vs Stop Payment
Where they are different:
- R07= full revocation of authorization (no future debits without new authorization)
- R08= stop on one specific transaction (authorization may still be valid)
After R07, the originator must obtain fresh written or electronic authorization before any new ACH debit.
The 60-Day Return Window
Unlike most ACH return codes that have a 2 banking day window, R07 can be initiated up to 60 calendar days after the settlement date. Finance teams must account for this extended exposure window when planning cash flow.
Can an Originator Dispute an R07?
The short answer is no. There is no formal dispute mechanism within the ACH network for R07. NACHA requires originators to retain authorization records for 2 years. This is the only defense against improper R07 claims for the originator.
R07 and ACH Return Rate Compliance
R07 counts toward NACHA's unauthorized entry return rate, which has the strictest threshold capped at 0.5%. Exceeding this cap triggers a formal audit. A spike in R07 may signal a billing dispute or a dark pattern in how authorization was originally collected.
How to Respond to an R07 Return
Tips to navigate an R07 response:
- Review authorization records for the affected customer
- If legitimately revoked
- Prevent future ACH debits
- If the revocation seems improper, contact your ODFI for guidance and preserve your authorization documentation.
- Do not re-present
Sending ACH Payments with Slash
Slash logs ACH authorization metadata alongside each payment, giving compliance teams the documentation trail needed to respond to R07 claims.¹ Slash's return rate dashboard tracks unauthorized returns in real time so teams stay below NACHA's 0.5% threshold.
You can send domestic or international ACH payments using Slash by following these steps:
- Navigate to the Payments dashboard and click Transfer Funds in the top-right corner.
- Select a recipient using saved contact and banking information, or add a new recipient by entering their contact and bank details.
- Choose the Slash account you want to use as the payment source, select ACH Transfer as the payment method, choose the destination bank account, and enter the payment amount (in USD).
- Optionally, send the recipient an email confirmation with a payment description. You can also add a memo with internal notes that are visible only to you and other Slash account administrators.
- Review the recipient’s bank name, account number, and ACH routing number to ensure the payment details are correct.
- Once all information is confirmed, click Send Payment.
Slash offers 24/7 support by phone and email to help resolve any issues with sending payments. You can also improve how you manage ACH transfers by scheduling recurring ACH payments, receiving low-balance notifications, and tracking returned payments alongside other transactions. With Slash, you can view all account balances, ACH activity, and transfers in one centralized dashboard.
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