Which return reason indicates that a transaction was unable to be processed due to a revoked authorization?

Which return reason indicates that a transaction was unable to be processed due to a revoked authorization?

• A. R03
• B. R10
• C. R04
• D. R07

Answer: (A)

The return reason that indicates a transaction was unable to be processed due to a revoked authorization is R03. When an R03 return code is used, it signifies that the payment was returned because the originator of the transaction has indicated that the authorization for the debit entry has been revoked. This situation typically arises when a consumer no longer agrees to have funds withdrawn from their account, thereby effectively canceling the authorization that permitted the debit entry to occur. The understanding of return reason codes is crucial for anyone working with ACH transactions, as these codes communicate specific issues that need to be addressed. In this case, knowing that an R03 specifically relates to a revocation of authorization helps navigate transactions more effectively and manage client communications accurately.

The return reason that indicates a transaction was unable to be processed due to a revoked authorization is R03. When an R03 return code is used, it signifies that the payment was returned because the originator of the transaction has indicated that the authorization for the debit entry has been revoked. This situation typically arises when a consumer no longer agrees to have funds withdrawn from their account, thereby effectively canceling the authorization that permitted the debit entry to occur.

The understanding of return reason codes is crucial for anyone working with ACH transactions, as these codes communicate specific issues that need to be addressed. In this case, knowing that an R03 specifically relates to a revocation of authorization helps navigate transactions more effectively and manage client communications accurately.