Ram:
> One of our postfix servers relays outbound mails to a relay provider
> using smtpauth.
> There have been some issues that sporadically the relay providers
> database returns auth-failure for valid accounts and the mail bounces.
> 
> I know they have to fix the issue at their database end , but can I
> configure my postfix to defer mails if authentication fails , rather
> then bouncing them.  For any other rejection , obviously, the mail has
> to be  bounced back. 

See: http://www.postfix.org/postconf.5.html#smtp_reply_filter

A rule like this might do the job.

/^535 text from ISP here/       435 Authentication failed

        Wietse

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