ACH Return Code R07 Explained
Learn what ACH return code R07 means, why banks issue it, how long it lasts, and what merchants and consumers should do next.
Taylor Reed
2/13/20262 min read
ACH payments are designed to be smooth, fast, and reliable. But sometimes, transactions fail and get sent back with a return code. One of the more serious return reasons is ACH Return Code R07.
If you have encountered R07, it usually signals a problem with authorization, and it requires immediate attention to avoid compliance issues or future payment disruptions.
This article explains ACH Return Code R07 in simple terms, including causes, timelines, and best practices for resolution.
What Is ACH Return Code R07?
ACH Return Code R07 means: Authorization Revoked by Customer.
In plain language, the customer has withdrawn permission for the merchant or company to debit their bank account. Even if the account has sufficient funds, the bank must return the transaction once authorization is revoked.
Common Reasons for ACH Return Code R07
Here are the most frequent causes:
1. Customer Revoked Authorization
The account holder contacted their bank or the merchant and clearly revoked debit permission.
2. Contract or Subscription Cancellation
The customer canceled a service but debits continued afterward.
3. Dispute or Complaint
A customer may revoke authorization after disputing charges they believe are incorrect or unauthorized.
4. Merchant Error
Debits were submitted after the authorization period expired or outside agreed terms.
How Long Does an R07 Return Take?
Return timeframe: Up to 60 calendar days from the settlement date
This is longer than most ACH returns, which makes R07 particularly important for merchants to track.
Is ACH R07 Serious?
Yes. R07 is considered a high-risk return code.
Repeated R07 returns can:
Increase your ACH return rate
Trigger bank monitoring or account reviews
Lead to ACH processing restrictions
Result in merchant account termination in severe cases
What Should Merchants Do After an R07 Return?
1. Stop All Future Debits Immediately
Do not attempt another ACH debit until authorization is re-established.
2. Contact the Customer
Confirm whether the revocation was intentional and clarify next steps.
3. Obtain New Authorization
If the customer agrees, get written or recorded authorization before resubmitting.
4. Maintain Proper Records
Keep proof of authorization on file as required by ACH rules.
What Should Consumers Know About R07?
If you are a consumer:
You have the right to revoke ACH authorization at any time
Revocation can be done through the merchant or directly through your bank
Once revoked, any future debits are considered unauthorized
Can an R07 Transaction Be Reprocessed?
No.
You cannot reprocess an ACH debit returned with R07 unless the customer provides new authorization.
Reattempting without permission can lead to compliance violations.
ACH Return Code R07 is not a technical error or a lack of funds issue. It is a clear signal that permission has been withdrawn.
For merchants, respecting that signal is critical for compliance and long-term ACH processing stability. For consumers, R07 is a powerful protection against unwanted debits.
Handled correctly, R07 does not have to be damaging. Ignored, it can quickly become costly.
Read More: