Direct Debit

• the only condition that must be met to start using Direct Debit, a mandate signed by the Payer is required to confirm his consent to charging the account under Direct Debit - such consent mandate will be delivered to the Payer by the Recipient
  • See the document mandate
  • See the document mandate in MS WORD mandateat
• transaction amounts are subject to no limits
• Payer has 56 calendar days to cancel (return) a transaction
• Payer may cancel a transaction even prior to the due date
• Payer may provide his consent via his bank
• Recipient may provide his consent via the Ognivo system

The Direct Debit process involves:

• Payer – an individual or a legal person
• Payer’s bank – a party to the interbank mandate
• Recipient
• Bank Handlowy w Warszawie S.A., operating under the Citi Handlowy brand

How it works - distribution of permits

How it works - transactions

• the first step is made by the Recipient who sends to the Payer two consent mandates to authorize charges to the account
• after receiving the consent mandate the Payer should enter the number of his bank account into it, check the appropriate debtor status and sign the consent. The Payer’s signature on the consent mandate must comply with the specimen signature provided to the Payer’s bank to ensure that the Payer’s bank will not reject the consent on the ground of inability to identify the signature
• the signed consent mandates should be sent to the Recipient and the Payer’s bank
• after receiving the consent mandate, all subsequent payments will be executed as Direct Debits (you will hear of the service activation date from the Recipient).

Direct Debit security is guaranteed by:

• Payment Services Act of 19 August 2011 (consolidated text, Journal of Laws of 2011, no. 199, item1175)
• Banking Law of 29 August 1997 (consolidated text, Journal of Laws of 2002, no. 72, item 665, as amended)
• Interbank Direct Debit mandate of 1 June 1998, signed by all banks participating in Direct Debit settlements
• Regulations applicable to operations of KIR S.A. (interbank clearing house in Poland) (and especially to sending Direct Debits via ELIXIR – the nationwide electronic system for interbank data exchange)
• Execution in accordance with standards of Bank Handlowy w Warszawie S.A. – one of the largest banks in Poland.

In case of error in an executed Direct Debit (e.g. the charged amount was not as specified on the invoice received from the creditor) the Payer has the right to cancel the transaction. The Payment Services Act reads that such cancellation (return) must be not later than:

• 56 calendar days after the account was charged – for a natural person who does not run a business
• 5 business days for any other persons

We are an active member of the Direct Debit Coalition, which is an association of mass bill issuers, banks and other entities, e.g. Krajowa Izba Rozliczeniowa (national clearing house). The Coalition has defined its mission as development and promotion of Direct Debit in Poland. The fact that the coalition participants have been cooperating in harmony for 11 years is the best proof that the widespread use of Direct Debit as a tool for payments for household bills is in the best interest of all parties – service providers, banks and end customers, i.e. Payers.

• fast and tested method for issuing Direct Debits – electronic transmission of transactions - CitiDirect
• possibility to sent huge volumes of transactions over a short time
• collection of receivables when due – settlements are made on a due date determined by the Recipient
• immediate access to funds in the account
• low costs of use and reduced administrative expenses of Direct Debit
• access to all details of executed Direct Debits
• fully automated process (also to re-submit transactions rejected because of insufficient funds)
• product implementation advice and optional training for the Client’s personnel
• output files in line with Client’s requirements

• a simple way to start Direct Debit (just sign the Consent)
• assurance that transactions will be executed on their due dates (it is the Recipient who is to keep an eye on deadlines)
• convenience and time saving (the Payer wastes no time as he does not have to submit orders, fill in mandates, ensure deadlines are met, etc.)
• option to cancel transactions after they are executed by the Payer’s bank - without providing any explanation
• due date notifications are automatically sent to the Payer
• account is charged exactly, and not sooner than, on the due date
• low costs charged by the Payer’s bank – usually at the standing order level
• option to re-submit a transaction in case of insufficient funds