Settlement models

A settlement model refers to the way that payments are settled to the webstore’s bank account. An appropriate settlement model that fits the webstore’s needs makes it easier to match the settlements in the webstore’s accounts receivables and book-keeping. Settlements are made to one assigned bank account, which means that the webstore doesn’t need to make transfers from several different banks to their main bank.

Settlements in gross or net

Settlements to the webstore’s bank account can be made in gross or net. Gross settlements means that payments are settled in their full original amount, and Svea Payment’s fees are invoiced afterwards, usually monthly. With gross settlements, the amount settled to the webstore’s bank account always matches the original payment amount.

Net settlements means that Svea Payments' fees are deducted from the settlements. This is the basic most often used way to handle the fees. Especially for webstores that don’t have very large volumes, this is an easy way to handle the fees.

Bundled or transaction-specific settlements

The next feature to decide regarding settlements is whether the webstore wants the settlements as bundled or transaction-specific.

Bundled settlements are most common, and it means that several payments are bundled together into one settlement. In other words, all of the payments that can be settled at the time when the system makes a bundled settlement, will be settled to the webstore. This settlement can include payments of orders made on several different dates. Bundled settlements can be made daily, weekly or monthly depending on the webstore’s choice. Bundled settlements are a good, basic choice for small and medium-sized webstores.

Transaction-specific settlements are often the right choice for webstores with larger volumes, although it has to be evaluated how much bank fees transaction-specific settlements will cause for the webstore. In this settlement model, payments are settled individually, with the webstore’s original reference number, which makes it easier to match settlements in the webstore’s book-keeping and enables automated financial management.

Both bundled and transaction-specific settlements can be made either in gross or net.

Balance-based settlements

This is a settlement model suitable especially for webstores with a good amount of returns and refunds. Balance-based settlements are a form of bundled settlements, where the system always settled everything that is possible to include in the settlement, as a bundled settlement to the webstore’s bank account every banking day.

Fees, refunds made to buyers etc. are deducted from the settlements so that the webstore doesn’t have to worry about them. This settlement model also enables making refunds to buyers without a time limit. Balance-based settlements enable quick and easy settlements to the webstore. Balance-based settlements are naturally made in net, as the fees and costs are deducted from the settlements.

Multi-vendor and dual settlements

When the webstore has very specific needs, Svea Payments also offers settlement models to fit the most demanding needs.

Multi-vendor settlements means that the settlement can be divided among several different parties; for example one part can be settled to the umbrella organization, one part to the software partner and one part to the actual webstore. This enables very complicated service types.

Dual settlement is similar to multi-vendor settlement but somewhat simpler; in this settlement model, the settlement is divided between two different parties, for example the umbrella organization and the webstore.

These settlement models are essential to many large and complicated online marketplaces, store chains and online services. The settlement model saves a significant amount of the customer’s resources when it comes to accounting and money flows.


All settlement models include settlement reports, that the webstore can either download from the Extranet-service, acquire through the reporting interface that we offer, or they can be delivered to the webstore’s email once a month.

The settlement reports are very useful in matching settlements to the webstore’s accounts receivables. This way, even bundled and net settlements can be matched easily.

In addition to settlement reports, you can find reports on receivables in the Extranet-service. Reports can be filtered and downloaded according to the desired time-frame.

You can read more about settlement models on our website (in Finnish).