Payments

Payment methods

Payment instructions may be submitted to the Bank through a number of channels:

• funds transfer instructions in an electronic form, submitted to the Bank through the electronic banking system (the most popular at present)
• funds transfer instructions in the form of a SWIFT message (MT101/MT103), submitted to the Bank through the SWIFTNet system (additional authorization required)
• funds transfer instructions in a paper form, submitted to a branch (higher processing costs involved)
• funds transfer instructions in a paper form, submitted byc facsimile (earlier agreement required)

Standard IBAN for Polish accounts consist of 26 digits:

58 1030 1508 0000 0000 2080 4063

• control digit
• the Bank’s clearing number
• the remaining part of the account number

Detailed information about processing domestic payments can be found in the Manuals and documents section available under the following link.

EXPRESS ELIXIR

• Express Elixir transfers can only be made in PLN and only between banks within the country that are participants of the Express Elixir system
• Express Elixir transfer can be sent up to a maximum of PLN 100 000
• Inability to complete transactions to Social Security and Tax Office

Detailed information about processing domestic payments can be found in the Manuals and documents section available under the following link.

SOCIAL SECURITY PAYMENT

From January 1, 2018, transfers to the Social Security Institution (ZUS) must be transferred to the individual account maintained at the Social Security Institution (ZUS), submitted on the “Domestic transfer” format.

Detailed information about processing domestic payments can be found in the Manuals and documents section available under the following link.

TAX OFFICE PAYMENT

Transfers to tax offices require proper formatting of the payment title.
In the case of processing transfers to the tax office without the appropriate form in the CitiDirect BE system, the Bank will process such a transfer without checking whether the payment title meets the requirements.

Below you can find guidelines how to initiate correctly the above payments (in accordance with the regulations of the Ministry of Finance):

• codeword / TI / - identifier type (1x) and identifier content (14x)
• code word / OKR / - period for which payment is made (7x), (the value "0" for this code word is allowed)
• code word / SFP / - form symbol or payment title (7x)
• codeword / TXT / - free text (optional), (40x).

The payment title (box 70 of MT103/MT101 message) should contain the relevant information in accordance with the following format:

• codeword / TI / - identifier type (1x) and identifier content (14x),

Where:

• the identifier type can be:

The content of the identifier is the corresponding identifier value.

• code word / OKR / - period for which payment is made (7x), (the value "0" for this code word is allowed)

Where:

• code word / SFP / - form symbol or payment title (7x)

Form symbol or payment title - appropriate to the transferred payment

• codeword / TXT / - free text (optional) (40x)

Sample payment title:
/ TI / P81011518252 / OKR / 19M03 / SFP / PIT /
TXT / TOM.SMITH

Detailed information about processing domestic payments can be found in the Manuals and documents section available under the following link.

SORBNET PAYMENT

Sorbnet are high-value payments (over PLN 1,000,000) made in real time (RTGS - Real Time Gross Settlement).

Detailed information about processing domestic payments can be found in the Manuals and documents section available under the following link.

SPLIT PAYMENT MECHANISM

As part of the Split Payment Mechanism, the Bank opened a VAT account for the Customer, to which access is limited (only for viewing).

An outgoing transfer initiated as Split Payment is only made in PLN currency from the PLN currency account. The transfer order contains additional information, including the amount of VAT included in the gross transfer amount and the invoice number. The bank process such a transfer in such a way that the amount of VAT is transferred from the VAT account (if there are funds in it) to the Customer's current account, and then bank transfers the entire gross amount as a Split Payment transfer to the beneficiary of the transfer. Similarly, incoming transfers are credited (i.e. by crediting the Customer's current account with the gross amount and transferring the VAT amount to the VAT account). In the case of VAT payment to the tax office, the transfer is processed firstly from the funds accumulated on the VAT account.

If you have questions, please contact your Advisor.

Detailed information about processing domestic payments can be found in the Manuals and documents section available under the following link.

DIRECT DEBIT

• Direct Debit – automatic receivables collection

SEPA DIRECT DEBIT

• SEPA Direct Debit – euro settlements integrated with CitiFXPulse

Note: Bank Citi Handlowy offers a service from the payer's position.

Cross-border payments are realized in standard way from the so -called The date of the VD2 currency, i.e. the recipient's bank is recognized after 2 business days from the date of charge of the bill. The exception is foreign payments made in the currencies of EU and EEA countries - these payments are made from the so -called The date of the VD1 currency, i.e. the recognition of the beneficiary's account occurs after the 1st business day from the date of charging the payer's account.

It is possible to accelerate a foreign transfer, for an additional fee, if the customer indicates this

According to the order, i.e.

• Urgent transfers - from the so -called Date of currency VD1,
• Express transfers - from the so -called Date of currency VD0

SWIFT Citi Handlowy Bank code: CITIPLPX

SEPA PAYMENTS

SEPA transfer is a service that allows you to send Euro currency to banks operating in 33 European countries that have concluded an agreement to make payments in the SEPA standard.

A SEPA transfer must meet the following conditions:

• Payment is made in Euro currency
• The payee's bank and the payer's bank must be the parties of the SEPA agreement. The payer provides the payee's account number in the IBAN format when initiating a payment
• The SHA cost clause is applied to SEPA transfer. This means that the payment costs are shared between the payer and the recipient of the SEPA transfer (no fees are deducted from the payment amount)

If the payment does not meet the conditions listed above, it will be processed according to other standards, which may be associated with a different value date of delivery and costs for its participants.

Delivery time - Payments made within 1 business day from the date of the order (VD + 1). It is also possible to make a SEPA transfer on the same business day (VD0), provided that you select the appropriate payment type in the SEPA payment order form.

Detailed information about processing domestic payments can be found in the Manuals and documents section available under the following link.

TARGET2 TRANSFERS

TARGET2 is a European RTGS settlement system (Real Time Gross Settlement - trans-European automated instant gross settlement system in nearly real time), dedicated to interbank express settlements in EUR currency within the European Union.

TARGET2 transfers can only be made in EUR currency.

• The participation of Bank Handlowy in the TARGET2 system provides the possibility of making transfers in EUR currency within approx. 2-3 hours from the moment of initiation in the electronic banking system.
• The TARGET2 system operates between 7:00 and 17:00. The cut-off time for initiating outgoing transfers from the Bank is 15:00.
• Sending payments is not dependent on processing sessions.
• TARGET2 transfers are currently the fastest way of sending payments in EUR currency.
• TARGET2 transfers will be especially useful in emergency situations when it is important to ensure the process of transactions within a few hours.
• They can be a simple way to support when the beneficiary of the transfer requires a credit in the account I the real time, and the delivery of the transfer has an impact on the terms of the contract.

Detailed information about processing domestic payments can be found in the Manuals and documents section available under the following link.

Standard IBAN in selected countries:

There are tools available on public websites to verify the correctness of the IBAN code.

• Net Balance

• Physical Cash Pooling

Mandatory TLS or MTLS is one of several approved methods used at Citi for encrypting email sent to and received from external parties. All Citi information classified Confidential or higher must be encrypted when sent outside of the Citi network via email.

TLS, which stands for Transport Layer Security, creates a secure, private email connection between Citi and the external client or business partner. Email between Citi and the external party is then transmitted over an encrypted TLS tunnel. The solution protects the confidentiality of every part of the email message and ensures that the email is delivered only to the correct destination.

Citi sets up all TLS connections as Mandatory TLS. With Mandatory TLS, the system is configured so that email between Citi and the external parties can only be sent via TLS. If a secure TLS connection cannot be estabilished, the email is not sent.

Business Partner Requirements

TLS must be functioning and properly configured on ALL mail servers that send and receive email for the business partner domains, including any outsourced or external systems sending auto-generated or other types of mass mailings on behalf of these domains.

The TLS configuration must meet the following equirements:

• Use of approved X.509v3 digital certificate. Self-signed certificates cannot be accepted. Please see the list of approved Certificate Authority (CA) issues on page 2 of the form. It self-signed, please initiate purchase and installation of the appropriate certificate
• Certificate Key Size must be 2048 or higher
• Mail Host cipher strength must be 256 or higher

Important Note: Servers must be running TLS with an approved Certificate of appropriate Key Size before this request is submitted. Otherwise, the request may be delayed or cancelled untill properly configured systems are ready for testing.

ITC (Instant Transaction Confirmation) ) - this service enables an automatical generation of an outgoing transfer confirmation in PDF format, which the Bank will send to the e-mail address provided.

Confirmations can be generated for all types of outgoing transactions:

• domestic transfers, including Social Sescurity/ US, SORBNET
• internal transfers
• cross-border transfers

How it works:

• Confirmations of domestic funds transfers may be sent to a specified e-mail address
• The "ITC" sequence needs to be entered in the payment details
• Confirmations are generated by the Bank in the PDF format and sent in the form of an encrypted, secure file
• The same e-mail address as indicated for e-account statements and the same confirmation opening passwords may be used.
• Short confirmation waiting time

Advantages:

• Confirmation request submitted at the time of submission of funds transfer instruction
• Transaction confirmation with all the required clauses
• Saving time necessary to search for transactions in case of traditional printouts
• No necessity to monitor transaction completion in order to print the confirmation
• Convenient way to store confirmations

Citi Handlowy has introduced the service of delivering the Polish Standard Audit File for Taxes (SAF-T), locally known as Jednolity Plik Kontrolny (later on referred to as JPK) data – Structure no. 2 (i.e. Bank Statements).

To apply for the service, it is necessary to fill and sign the SAF form and select the types of files.

In the JPK application form there are choices to be made, regarding: (A) file format and (B) delivery channel.

(A) File format:

There are two formats available:

• CSV file, daily and automatically generated – from all accounts registered to base numbers presented in the application form for which bank statements are generated (including for example payroll information). This file will contain data about transactions, i.e. source data, which (having been supplemented with static data such as your company address or the ID of tax office which has enquired about JPK) you will be able to convert into XML format for the chosen period. The files will be delivered regularly, day by day.
• XML file, generated as a one-off, on demand order – generated only upon request which should be sent to CitiService (an Excel file containing data about address, dates, account numbers sent via email) by your authorised personnel. Such a file can also be generated from all accounts registered to base numbers provided in the application form to which statements are generated (including for example payroll information). This will be available in XML format that is already compliant with the Ministry requirements.

How to file for this in the application form:

• ☑ If you choose CSV option → you will be able to receive CSV daily and you will be able to order XML upon request (unless you indicate otherwise);
• ☐ If you do not choose CSV option → you will be able to order XML upon request without receiving daily CSV files.

(B) Delivery channel:

When filing the JPK application form you are making the decision as to how you would like to receive those files, it is also a decision about who should have the access to them. Hence, here we also have two options:

• Delphi XP – file upload/download module in CitiDirect system. In order to use this option, it is sufficient to sign the third page of the JPK application form and indicate users who should be allowed access to downloading JPK files (all JPK files, i.e. from all accounts – this may include payroll). No other CitiDirect forms are needed. However, if you already expect to order large JPK files, or if you need some flexibility in terms of access rights, we would kindly ask you to consider an alternative solution – CitiSFT.
• CitiSFT – this is an alternative connectivity channel between the Bank and our clients. It provides the opportunity to automatize the process and introduce more flexibility in setting up access rights. Through CitiSFT the Bank can send JPK to a network share drive/folder within your company’s infrastructure. Thus, thanks to this solution you may set up the process in such a way that the Bank will be sending files to your folder, to which only system users will be granted access, and your system will then continue to distribute the files accordingly to your requirements (account number will be included in the title of the file, making it easy to decide who should be allowed the access to it and, for example, to direct the payroll files only to designated users).
  Within CitiSFT there is also a possibility not to provide your own network share drive/folder, but indicate users who will manually access data (this would have to be run with high frequency since such “not transferred” files would be kept up to 1 day only), however, we recommend the automated variant instead.
  This solution is flexible and highly capacious (up to 1GB of transfer daily), and thus it is what we recommend. In order to make use of CitiSFT, there is no need to sign the third page of the JPK application form - separate CitiSFT documentation is needed. In this case, we kindly ask you to contact us to commence the implementation and technological planning.

Formal information for the clients:

As of July 1, 2016, Citi Handlowy provided its clients with the opportunity to obtain information on transactions recorded on accounts maintained by the Bank, which are necessary for the Customer to provide to the tax authority in the form of a Single Audit File (JPK).

The solution is a response to the needs of Citi Handlowy's clients, in particular large enterprises, on whom the provisions of the Tax Ordinance (effective from 1 July 2016) imposed the obligation to forward all or part of the tax books and accounting documents at the request of the tax authority in the manner prescribed by the provisions in the case of tax books using computer programs.

Citi Handlowy offers the possibility to provide the Customer with information on transactions saved on accounts maintained by the Bank in the form of files compliant with the JPK format (XML file) for the selected period. Source transaction data (CSV file) can also be provided to the Customer on an ongoing basis.