A Settlement configuration defines how Klarna aggregates Partner balance transactions and produces settlements for a Payment Acquiring Account. It determines:

• When settlements are generated according to the Settlement schedule
• Which Settlement Account aggregates payment transaction events and funds
• Which Bank accounts are used when a settlement results in a payout

Setting Settlement configurations 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 currently create or update these configurations through an API.

Ultimately, a settlement represents the net result of all Partner balance transactions. Examples include:

• Captures
• Refunds
• Chargebacks
• Fees

A payout occurs if the resulting settlement balance is positive or carried forward and netted against future positive settlements when negative.

A Settlement configuration always belongs to a Payment Acquiring Account.

Each Payment Acquiring Account has one Settlement Account, which acts as the running balance that receives all Partner balance transactions, which means all individual financial entries posted to the Settlement Account. These represent events such as captures, refunds, chargebacks, fees, and other payment transaction events. Partner balance transactions are summed into a settlement and are reflected in the settlement report. With this information it will generate the settlements according to the defined schedule.

Additionally, payment transaction events (such as captures, refunds, and chargebacks) contribute entries to the Partner balance and ultimately affect the settlement outcome.

• Payment Acquiring Account – The account that receives settlement for all associated payment transaction events and funds.
• Settlement Account – A Klarna-managed balance associated with a Payment Acquiring Account. All Partner balance transactions (for example, captures, refunds, chargebacks, and fees) are posted to this balance. According to the settlement schedule, the Settlement Account is aggregated to produce a settlement, which may result in a payout when positive, or carried forward and netted against future positive settlements when negative.
• Payment Transaction Events – Events such as captures, refunds, and chargebacks that produce Partner balance transactions posted to the Settlement Account.
• Bank accounts – One or more accounts that may receive payouts when a settlement balance is positive.

A Settlement configuration includes the following elements:

Note: Settlement schedules produce settlements, not payouts. Payouts occur only when the settlement balance is positive; negative balances roll forward and are netted against future positive balances.

Klarna sets up a Payment Acquiring Account and creates the associated Settlement Account. Klarna then configures the settlement schedule, the payout bank accounts, and any reference prefixes. The Acquiring Partner does not perform these steps directly.

If an Acquiring Partner changes its banking setup or reorganizes its legal structure, Klarna updates the Settlement configuration to reflect the new arrangement. Changes to bank accounts, schedules, or reference prefixes are performed by Klarna.

If an Acquiring Partner uses separate Payment Acquiring Accounts by region or market, Klarna creates multiple Settlement Accounts and Settlement configurations, enabling independent settlement and payout routing.

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 reporting and 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 create clear reporting boundaries

• 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 required for operational or reporting needs.
• Coordinate structural changes with Klarna, since Klarna performs all modifications to Settlement configurations.