Q.) I have a question regarding a return received as R07 (Authorization Revoked). Our Originator wants us to ask the RDFI for proof that the customer revoked authorization. Is this something we should request?
The R07 Return Reason Code can be used when the Receiver has provided the RDFI with a Written Statement of Unauthorized Debit (WSUD) in which the Receiver states that the authorization for the debit entry was revoked directly with the Originator under the terms and conditions of the authorization agreement. The RDFI is not required to produce proof that authorization was revoked; however, the ODFI can request a copy of the WSUD from the RDFI. Originators may not reinitiate entries returned for authorization revoked and should be prepared to contact the Receiver regarding those Entries. Additional information can be found in the 2021 Nacha Operating Rules, Article Three, Section 3.12 and on page OG 81 in the Guidelines Section of the 2021 Rule Book.