Once a transaction is captured, the applicable rates are applied based on the capture amount. The detailed settlement file will include the actual calculated amount of the fees, total amount, net amount, and tax applied to any fees.

Payouts are made to the bank account(s) according to the schedule defined in your settlement configuration. The payment_reference is included within the metadata in the transfer of funds according to best practices in each market. This id may be used to correlate a given payout to the associated settlement file. Each currency will result in a separate payout with its own payment_reference.

A given transaction can be partially captured or refunded multiple times and fees are applied per capture. As such there may be multiple fees associated with any given transaction.

• The payment_transaction_id is provided within the settlement file for all actions regarding a payment transaction.
• The payment_capture_id/payment_capture_reference are only associated with a specific capture, and payment_refund_id/payment_refund_reference with a specific refund. These references may be useful in associating a given action with its reconciliation.
• The dispute_id used to handle disputes is also contained within the settlement file, and can be used to understand the associated fees applied as a result of that action.

The settlement file will detail captures, fees, refunds, disputes, and discounts. Here’s how to manage them:

Fees

The settlement file will include the fees applied to each capture event. These match the effective rates as previously discussed.

• Tax (VAT/GST) will be applied to the fees if applicable (ie. EU and Australia).
• The fixed and variable rates of the tax will be included in the settlement file in the tax_amount field.
• Klarna calculates tax based on the unrounded value of each individual fee on a given capture.
• In the settlement details, tax_amounts will be summarized for ease of consumption.
• The fee amount is separated from the tax (fee_amount + tax_amount = total fee)

Refunds

Refunds are withheld from subsequent payouts, as the payment is NET. If the settlement amount is zero, the outstanding debt will be carried over and applied to subsequent settlements.

• Debt statement: Debt statements are issued if the partner has a negative balance (at an aggregate level) for more than 30 days. This statement is not an invoice but a statement of the partner to pay Klarna of the negative balance.

Disputes

Disputes are also withheld (if won by customer), and a fee may be applied. More details are available in the disputes section.

Other Adjustments

• Fee Correction: A correction applied to correct a previously charged fee in cases where an error occurred related to the application of fees.
• Chargeback: Reverses a transaction following a dispute.
• Holdback/Release: Handles holds or releases. Generally used when an account is UNDER_REVIEW or has INSUFFICIENT_BANK_ACCOUNT_DETAILS.

It is possible that multiple chargebacks may be applied on a single transaction. If this occurs, the transaction details will be included in the settlement as separate lines, ensuring the capture and transaction can be correlated to the chargeback, and the details of the chargeback are also available.

Carryover debt balances

If a settlement has a negative balance, this negative balance will be reported as closing_debt_balance in the report and reflected as an openingdebt_balance in the subsequent report.

Reconciliation requires an understanding of both the buy rates communicated by Klarna and the sell rates applied to Partners.

Rate data: buy rates, set by Klarna, are included within the price plans and can be accessed at any time. Sell rates, however, are determined and managed solely by you as the Acquiring Partner.

Fee data: use the fee data to calculate the fees for each transaction.

• Transactional fees are determined through retrieval of the fees defined in the price plan.
• Any applicable discounts are subtracted.
• If a microtransaction cap applies to the transaction, the lesser of the calculated fee or the cap will be used.
• The variable rate is applied at the time of capture, and the final result will be detailed in the settlement reports.

Acquiring Partners must ensure transparent communication regarding the sell rates offered to Partners to maintain clarity and reduce the risk of Partner-related inquiries. While Acquiring Partners may choose to share buy rates with Partners, only the buy rates directly relevant to the specific Partner may be disclosed.

Cut-off times define which payments will be included in a given day's settlements. All transactions which have been captured or refunded before the cut-off time will be added to the settlement for that period and a payout will be initiated by Klarna on the next banking day. The Settlement Report will normally be available within 24 hours of the cut-off time.

The Payout date is when Klarna initiates the payout to the partner and publishes the Settlement Report. The actual arrival of the payout in the partner’s bank account is dependent on their bank’s processing times.

• Partners can request an optional payment reference prefix for payouts.
• Length 4 characters
• Usage:
  • The prefix is added immediately before the Klarna-generated payment reference.
  • The full value (prefix + payment reference) is used in the bank statement.
  • The prefix is also included in settlement report file names, directly before the payment reference.

Testing the settlement process ensures that your integration with Klarna’s settlement and payout flows works as expected before going live. This section describes how to test both the settlement report and the payout simulation.

To test settlement report generation in the test environment, follow these steps:

1. Capture payment transactions
   1. Complete payment captures in your test environment. Optionally, process refunds to include them in the report.
2. Generate settlement reports
   1. Use the Generate settlement reports API endpoint with your API key. You can specify a custom time interval for captured payments and refunds, or use the default interval (last 7 days). To include additional transactions that Klarna typically generates outside of payment activity (for example, dispute fees, fee corrections, and holdbacks), include them in the request payload as described in the API reference.
3. Wait for report generation
   1. Settlement reports are created asynchronously. If you have configured webhooks, Klarna sends a notification when the report is ready. Report generation typically completes within one minute.
4. Retrieve the settlement report
   1. Fetch generated reports using the settlement IDs returned by the API, or list all available reports. All settlement reports are also uploaded to your SFTP server in the test environment.
   2. One report is generated per currency and payment acquiring account.

You can simulate the payout process for a settlement to verify how your integration handles payout status changes and webhook notifications.

• Once a settlement report is generated (or if one already exists), you can set the payout status of the settlement using the Set payout status endpoint.
  • API reference: Set payout status
• Each time you set a new payout status, Klarna sends a webhook notification (if you have configured webhooks for your integration). Webhook definitions are available in this documentation.
• The payout status update is asynchronous. After making the request, you can query the Get payout status endpoint to check the current status:
  • API reference: Get payout status
• When the webhook is sent, the payout status update is complete.

• Create payment transactions in your test environment.
• Perform post-purchase actions such as capture, refund, and cancel.
• Generate settlement reports.
• Use the Set payout status endpoint to simulate payout status changes.
• Verify that webhooks are sent for each payout status change (if configured).
• Use the Get payout status endpoint to confirm the updated status.
• Ensure your integration handles all expected webhook events and payout status transitions.