Payment types and scheme selection

Following payment schemes are supported for payments initiated through LHV Connect:

• Customers opened bank account (IBAN) with LHV Bank (UK) - Faster Payments, Intra-Bank payment (payments to other LHV Bank accounts including EE).

Payment scheme selection decisions can be done automatically (the default option) or submitted in the XML instructions.

Customers opened bank account (IBAN) with LHV Bank (UK):

• To other LHV accounts (UK-> UK) - internal payment

• To other account in LHV Group (EE-> UK or UK->EE) – group payment

• If payment currency is GBP and the receiving bank is a member of the Faster Payments Service clearing and settlement system - it is sent using Faster Payments. The upper limit of payment amount is 1 000 000 GBP. There are different methods to submit the creditor account as IBAN or UK domestic account nr with sort code. Examples added below.

Manual payment scheme selection

Manual selection of payment scheme is done using optional tags in the XML structure - PmtInf.PmtTpInf.SvcLvl.Prtry for group level or CdtTrfTxInf.PmtTpInf.SvcLvl.Prtry for every payment individually. Only if these tags are added system tries to use the provided scheme. If not added, then it will work as before – best scheme is selected automatically. Possible values are:

• INST – SEPA Instant Credit Transfer. Payments is processed in RT1 or TIPS.

• SEPA - SEPA Credit Transfer. Payment is processed in STEP2 SCT

• TARGET2 - Payment is processed in T2, value will stay TARGET2 but payments will be processed as SEPA or SWIFT payment.

• FAST - UK Faster Payment / FPS

• ALL - automatic selection, the same outcome as not providing the tag at all. Can also be used to select SWIFT payments.

Sample:

<PmtInf> //Group setting
    ...
    <PmtTpInf>
        <SvcLvl>
            <Prtry>FAST</Prtry>
        </SvcLvl>
    </PmtTpInf>
    ...
    <CdtTrfTxInf>
    ...
        <PmtTpInf> //Single payment setting
            <SvcLvl>
                <Prtry>ALL</Prtry>
            </SvcLvl>
        </PmtTpInf>

Additional notes:

• If any Prtry value is not valid, the whole file is rejected.

• CdtTrfTxInf.PmtTpInf block setting takes priority over PmtInf.PmtTpInf if both are added

• All payments are still processed as Bank Internal Payments when possible (both accounts are in LHV Bank - EE and UK both included)

• If Bank Internal Payment cannot be used and also selected scheme cannot be used it will be rejected – every payment separately

• If payment is initiated, but there is insufficient daily or monthly limit, or insufficient funds available, it is canceled immediately unless otherwise agreed with LHV