API and SDKs
Settlement Configuration

Configure settlement settings in Klarna to align payout schedules, business entities, and bank details—ensuring smooth reconciliation by matching account structures between your platform and Klarna’s.

A settlement configuration outlines how Klarna will settle funds to a Partner. This setup includes various components crucial for processing payouts:

  • Payout schedule: Specifies when the payout will occur based on when the transaction is captured.
  • Settling business entities: Identifies the legal entity receiving the funds. This is also the entity linked to the bank account where funds are deposited. This generally refers to the local entity of the Acquiring Partner that onboarded the Partner.
  • Bank account details: Information regarding where funds should be transferred.
  • Payout prefix: A defined prefix added to payouts to assist with identification and reconciliation.

As an Acquiring Partner onboarding Partners through Klarna, you manage their settlements, thereby simplifying their reconciliation process. Our recommendation is that the account structure used to onboard a Partner with Klarna matches the account structure defined in your platform, keeping a 1:1 account ratio between the two systems.

Example
  1. Local-Pay is a global Acquiring Partner that processes transactions across multiple regions. They prefers to receive payouts for all transactions globally to the same bank accounts for all Partners, regardless of their onboarding country or entity. Therefore, Local-Pay does not need to specify any specific settlement configurations during the Partner onboarding process.
  2. In contrast, Global-Pay is a global Acquiring Partner that also processes transactions across multiple regions. It prefers to settle payouts to different bank accounts by country and currency for administrative reasons. For example,

*Global-Pay prefers payouts for Partners onboarded in the UK to be directed to BankAccount1 for all currencies, while
*Payouts for Partners onboarded in the EU should be directed to BankAccount2 for all currencies.
Consequently, UK Partners will have a different Payment Acquiring Account than EU Partners. Global-Pay, as an Acquiring Partner, will be able to configure different settlement configurations based on the different Payment Acquiring Accounts in the Acquiring Product.