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ACH return R07 Counts toward unauthorized return rate

Authorization Revoked by Customer

Category: Authorization & consumer dispute Initiated by: RDFI

Applies to (SEC scope)

ALL CONSUMER SEC, EXCEPT ARC, BOC, POP, RCK

camt.053 mapping

AG07 — Unsuccessful Direct Debit

Reinitiation

Do not debit again without a new authorization

Nacha's definition

RDFI's customer (the Receiver) revoked the authorization previously provided to the Originator for this debit Entry.

Verbatim from Nacha — ISO 20022 Guide to Mapping U.S. ACH Return Items and Notifications of Change, August 2023, Version 2.01 (Table 1, return reason codes) (return reason code table). Applies to: ALL CONSUMER SEC, EXCEPT ARC, BOC, POP, RCK.

How it appears in an ISO 20022 statement

Nacha's mapping guide maps R07 to camt.053 reason code AG07 (Unsuccessful Direct Debit) — ISO definition: Debtor account cannot be debited for a generic reason.

Return time frame

Nacha groups this code with the unauthorized debit return codes — R05, R07, R10, R29 and R51 — for its unauthorized entry return rate. The specific return time frame for this code is set in the Nacha Operating Rules and is not stated on the public Nacha pages used here.

Source: Nacha — rule page 'ACH Network Risk and Enforcement Topics' (unauthorized return rate threshold; reinitiation of entries)

Can the entry be reinitiated?

Nacha's reinitiation rule page states that "an unauthorized debit cannot be remedied" and that reinitiating an entry returned as unauthorized is an improper reinitiation practice; a new authorization obtained after the return takes a debit outside the reinitiation rule. R07 is one of the codes Nacha counts as unauthorized.

Source: Nacha — rule page 'ACH Network Risk and Enforcement Topics' (unauthorized return rate threshold; reinitiation of entries)

PaymentBrief guidance, not Nacha text

the Receiver has withdrawn consent — cancel the mandate on your side and do not debit again unless the Receiver gives a new authorization.

Unauthorized return rate

Nacha counts this code toward an Originator's unauthorized entry return rate, whose threshold Nacha set at 0.5 percent. Each return under this code moves that ratio for your ODFI, independently of the money involved.

Source: Nacha — rule page 'ACH Network Risk and Enforcement Topics' (unauthorized return rate threshold; reinitiation of entries)

What an operator does next

The Receiver revoked the authorization with their bank. Stop the schedule immediately, mark the mandate revoked, and open a customer conversation about the underlying relationship — further debits will return again and each one counts against your unauthorized rate.

PaymentBrief guidance, not Nacha text. Your ODFI's procedures and the current Nacha Operating Rules govern.

Where this comes up on PaymentBrief

Direct debit explained: ACH, SEPA, Bacs and eGIRO

Where ACH debit returns sit in the mandate and collection lifecycle, and how the return-rate thresholds bear on your ODFI relationship.

Recurring payments and billing operations

What a return means for the next billing cycle, dunning and mandate status.
Confidence: high. Status: verified. The Nacha Operating Rules govern. Nacha sells them and they were not used here; every statement above is taken from a public Nacha document or a public US Treasury or Federal Reserve document, named per statement. Where those documents are silent, this card says so of those documents — it is not a claim about everything Nacha has published.

Sources for this code

Related codes

R05

Unauthorized Debit to Consumer Account Using Corporate SEC Code

R08

Payment Stopped

R10

Customer Advises Originator is Not Known to Receiver and/or Originator is Not Authorized by Receiver to Debit Receiver’s Account

R11

Customer Advises Entry Not in Accordance with the Terms of the Authorization
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