I am looking at WSUPPs (ours are provided by bankers systems) and the "Unauthorized debit" box is checked. However, under that box number 2 is checked - this box indicates that "I authorized XYZ to originate one or more ACH entries to debit funds from my account, but on December 1, 20XX, I revoked that authorization by notifying XYZ in the manner specified in the authorization." (there is also a box number 1 indicating "I did not authorize, and I have never authorized....")

Our ACH returns people returned this as an R10 - Customer Advises Not Authorized. However, I think that it should have been returned as an 07 - Authorization Revoked based on the WSUPP. Would you include this as an exception or am I lookin to deeply into this?

Well, with both boxes checked (if I understand you correctly), it's hard to tell exactly what the customer is claiming--that they received a rogue debit and want to banish it, or that they grew weary of being debited in an existing relationship and went ahead and terminated it. I'm gonna guess the latter, in which case it should've been an R07. Note that R07 cannot be used for POPs, TELs, or single-entry WEBs.

Sorry I was not a bit more clear(note that I made up the letters and numbers, on the actual form these are merely checkboxes):

There are two main options on the form that you can pick from:
1. Unauthorized Debit
2. Improper Debit

After choosing the main option under each is the following (you must then choose one of the letters after picking option 1 or 2):
1. Unauthorized Debit
a. I did not authorize...
b. I did authorize, ...but revoked...
c. I authorized but the amt was different...or the debit was made too soon...

2. Improper Debit
a. For RCK entries...(list of options)
b. For ARC entries...(list of options)
c. For POP entries...(list of options)

So for example the form indicates 1b, but the return reason I am looking at is an R10. So technically the return reason does not match the WSUPP - I just didn't know how big of a deal this was -because at least there was a WSUPP on file.

Sorry I was not a bit more clear(note that I made up to letters and numbers, these are merely checkboxes):

Th

I've had to make the same determination. I think the form is a bit ambiguous. (And that drives me crazy.) But I read this example as THIS SPECIFIC debit was unauthorized due to the fact that the once recurring authorization was REVOKED on (date). Return it revoked.

I always told my Reg E staff that it was not up to the customer to decide the code, but up to them once they determined the SEC code and the customer's explanation. I also had customized the form to our financial institution so it was not the cookie-cutter form out of the Rules. So there was a space for them to explain in their own words.