Configuring Settlement settings ensures that settlement schedules, account structures, and bank details align with the Acquiring Partner’s platform. When these structures match, settlements from Klarna can be reconciled more easily against the Acquiring Partner’s internal ledger and banking records.

Klarna creates and maintains the Settlement configuration for each Payment Acquiring Account on behalf of the Acquiring Partner. Acquiring Partners do not create or update the configuration themselves.

A Settlement configuration defines how Klarna aggregates financial activity and produces settlements for a Payment Acquiring Account. It determines:

• When settlements are generated
• Which Settlement Account aggregates financial transactions
• Which bank accounts are used if a settlement results in a payout
• How settlement outputs appear in statements and reports

A settlement represents the net result of all Partner balance transactions such as:

• Captured transactions
• Refunds
• Chargebacks
• Associated fees
• Etc

A payout occurs if the resulting settlement balance is positive, which is the normal case.

A Settlement configuration always belongs to a specific Payment Acquiring Account. Each Payment Acquiring Account has one Settlement Account, which acts as the running balance that receives all financial transactions and produces settlements according to the defined schedule.

The Settlement configuration depends on:

• Payment Acquiring Account – The account whose financial activity is settled.
• Settlement Account – The balance aggregating captures, refunds, chargebacks, and fees.
• Bank accounts – One or more accounts that may receive payouts when a settlement balance is positive.

The Settlement configuration defines how settlements are produced and, when applicable, how positive balances are paid out. Actual schema details may vary; refer to the official API schema when published.

Note: Settlement schedules produce settlements, not payouts. Payouts occur only when the settlement balance is positive.

Klarna creates and maintains Settlement configurations on behalf of Acquiring Partners. There is currently no public API for creating or modifying these configurations.

• Klarna creates the Settlement Account and Settlement configuration when a Payment Acquiring Account is set up.

• Klarna aggregates captures, refunds, chargebacks, fees etc into the Settlement Account.
• At each scheduled settlement cycle, Klarna produces a settlement.
• If the settlement balance is positive, a payout is issued to the configured bank account(s).
• There will be one settlement and payout per currency.

• Klarna updates the configuration when legal entities, bank accounts, or settlement rules change.
• Updates are not performed directly by the Acquiring Partner.

• The configuration is retired when the Payment Acquiring Account is decommissioned.

Klarna sets up a Payment Acquiring Account and assigns one Settlement Account. Klarna then creates the Settlement configuration with the appropriate schedule, bank accounts, and other properties.

If an Acquiring Partner updates its internal banking structure or reorganizes entities, Klarna updates the Settlement configuration and Settlement Account accordingly.

An Acquiring Partner uses different Payment Acquiring Accounts per market; Klarna configures separate Settlement Accounts and Settlement configurations for each.

Local-Pay prefers one settlement setup for all Partners, globally.

• One Settlement configuration for all Payment Acquiring Accounts
• One Settlement Account
• One set of bank accounts
• Simplified reconciliation

Global-Pay separates settlements for operational and reporting reasons.

• UK Payment Acquiring Accounts → Settlement Account A → UK bank account
• EU Payment Acquiring Accounts → Settlement Account B → EU bank account
• Separate configurations per market enable localized reporting

• Align Settlement configurations with how your organization structures Payment Acquiring Accounts and bank accounts.
• Use a consistent settlement reference prefix to simplify reconciliation.
• Reuse configurations when settlement behavior is identical.
• Introduce additional configurations only when operational needs differ, such as separate settlement flows per region or currency.
• Coordinate structural changes with Klarna, since Settlement configuration updates are performed by Klarna.