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
flowchart TD
A[Settlement currency requested?] -->|Yes| B[Validate against Partner's allowed settlement currencies]
B -->|Valid| C[Use requested settlement currency]
B -->|Not valid| D[Return 400: Settlement currency not supported]
A -->|No| E[Use Payment Transaction currency]
E -->|Allowed| F[Use Payment Transaction currency as settlement currency]
E -->|Not allowed| G[Select default settlement currency from Partner's allowed list]
1. Create and capture a Payment Authorization
API Operation: authorizePayment
Create a Payment Authorization in any currency and specify the settlement currency in the request body:
Request
JSON
1
2
3
4
5
6
7
8
9
10
{
"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
1
2
3
4
5
6
7
8
9
10
{
"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",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 .
.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_amounttransaction_event_currencyexchange_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
- 1.Create a Payment Transaction with a specified
settlement_currency. - 2.Create another without specifying it and observe defaults.
- 3.Capture the Payment Transaction.
- 4.Generate a Settlement Report using generateSettlementReports .
- 5.Verify converted amounts and reconciliation fields.
Troubleshooting
A 400 error occurs when requesting a settlement currency
Cause: The Partner’s Settlement Configuration does not support the requested settlement currency.
Action: Choose a supported currency or contact Klarna Support.
A 400 error occurs when the Partner does not request a settlement currency
Cause: The Payment Transaction was authorized in a currency the Partner cannot settle, and the Partner is not enabled for default selection.
Action: Contact Klarna Support to verify enablement.
Related articles