Request settlement currency

Partners can request their preferred currency for settlement of Klarna Transactions, ensuring flexibility and ease of transaction processing.

Overview

Partners can request the currency they want Klarna to use when settling a Payment Transaction. This can be done explicitly during the Payment Authorization or implicitly through the Partner’s Settlement Configuration when the Payment Transaction currency isn’t supported for settlement. This enables Partners to transact in any currency while receiving settlement in one of their supported currencies.

If no settlement currency is requested and the Payment Transaction currency cannot be settled, Klarna selects a supported settlement currency for the Partner and returns it in the authorization response.

Example: A US Partner sells to an EU customer and authorizes the Payment Transaction in EUR. The Partner requests settlement in USD, so Klarna settles the transaction in USD.

Step-by-Step

Settlement Currency Selection Flow

1. Create and capture a Payment Authorization

API Operation: authorizePayment Klarna Icon

Create a Payment Authorization in any currency and specify the settlement currency in the request body:

Request

JSON

{
  "currency": "SEK",
  "request_payment_transaction": {
    "amount": 2000
  },
  "acquiring_config": {
    "settlement_currency": "USD"
  }
}

If settlement_currency is not provided, Klarna attempts to settle using the currency of the Payment Transaction. If that currency is not supported by the Partner’s Settlement Configuration, Klarna selects a supported default settlement currency.

Response

JSON

{
  "payment_transaction_response": {
    "result": "APPROVED",
    "payment_transaction": {
      "payment_transaction_id": "krn:payment:eu1:transaction:6debe89e-98c0-486e-b7a5-08a4f6df94b0",
      "payment_transaction_reference": "partner-transaction-reference-1234",
      "amount": 2000,
      "currency": "SEK",
      "state": "COMPLETED",
      "settlement_currency": "USD",
      "payment_pricing": {},
      "payment_captures": [],

If the requested settlement currency is not supported by the Partner’s Settlement Configuration, Klarna returns 400 with the message Settlement currency not supported.

Capture the Payment Transaction using capturePaymentTransaction Klarna Icon .

Conversion timing

Currency conversion occurs at the moment each Payment Transaction event happens (such as Capture or Refund).
Conversion uses the spot rate available at the event time.

2. Reconcile settlement

When the Payment Transaction is settled, the converted amount appears in the Settlement Report. The following fields allow reconciliation back to the original Payment Transaction event:

transaction_event_amount
transaction_event_currency
exchange_rate

Field	Populated when	Description
`amount`	Always	The amount settled for this Partner Balance Transaction.
`currency`	Always	The settlement currency.
`transaction_event_amount`	Only when conversion occurred	The original amount of the Payment Transaction event in minor units.
`transaction_event_currency`	Only when conversion occurred	Original currency of the Payment Transaction event.
`exchange_rate`	Only when conversion occurred	The rate applied: `transaction_event_amount × exchange_rate = amount`.

Fees

Fees follow the same settlement currency as the related Capture.
Fixed fees are defined in the Partner’s price plan.
Converted fees include the same reconciliation fields.
Variable fees are calculated from the original amount, then converted.

Other Payment Transaction events

Settlement currency is determined per Payment Transaction.
All events (Captures, Refunds, Fees, Chargebacks) convert into that settlement currency.

Testing

Create a Payment Transaction with a specified settlement_currency.
Create another without specifying it and observe defaults.
Capture the Payment Transaction.
Generate a Settlement Report using generateSettlementReports .
Verify converted amounts and reconciliation fields.