How to manage disputes on Klarna payments

Klarna covers disputes driven by customer fraud or inability to repay installments, provided you follow Klarna’s shipping policy. Merchants aren’t involved in customer disputes.

If a customer claims that you didn’t deliver the relevant goods as expected, Klarna may send you an email to request additional information to help resolve the claim. If you passed tracking information to your account, Klarna may be able to resolve the dispute without contacting you. If Klarna needs more information from you to resolve the claim, they will attempt to contact you twice. Dispute emails from Klarna will include the following information:

• The payment reference (py_xxx)
• The amount of the total payment
• The date of the transaction
• The customer’s email address

Emails will be sent to the support email address associated with your account; in case no such address exists, the email of the primary owner of the account will be used. You must submit the requested information to Klarna within 14 days. It’s important to reply to these emails as soon as you can with the relevant evidence as it increases the chance that the dispute may be ruled in your favor.

While the case is open between you and Klarna, the transaction will still show as “Paid” in your account. If Klarna rules in favor of the customer, they may issue a chargeback, with funds withdrawn from your account. Klarna dispute decisions are final—they have no appeal process.

Note that Klarna transactions cannot be disputed more than 180 days after the transaction.

Klarna Financing for US and UK payers

Klarna’s Financing Product allows shoppers to buy now and pay over monthly installments. Please note that Klarna Financing is different from other Klarna payment options such as Installments, Pay Later, and Pay Now.

• Configurable: Offer the best, most transparent Financing payment option, with dynamic features including fixed 0% APR or term lengths from 6 months up to 24 months.
• Simple and transparent: Offer shoppers a straightforward closed-end loan with no hidden fees.

This feature is not available by default for:

• US merchants looking to offer financing to their US payers
• UK or EU merchants looking to offer financing to their UK payers

If you’re a US merchant looking to enable Klarna Financing to payers in the US, please contact us.

If you’re a UK/EU merchant looking to enable Klarna Financing for payers in the UK, you will need to obtain a credit broker status from the British Financial Conduct Authority (FCA). You can complete and submit the necessary form online through the FCA website or through a specialized consultancy service. If you are registered, contact support.

Why is being registered with the FCA a requirement?

Being registered with the FCA is a requirement because Klarna Financing is a regulated credit service. While Klarna facilitates a credit agreement with the customer, the merchant still offers the credit and makes it viable for the customer to do so through their website.

How complex is this process? How long does it take to complete it? Does it cost anything to the merchant to become a credit broker?

It takes a couple of hours to fill out and takes 8–12 weeks to come back. It costs £100–£500 to become a credit broker, depending on the size of the merchant. Merchants have to fill out a RegData report every year and pay a yearly fee, which is dependent on how much credit they’ve put through.

Klarna Financing—US Offering

• APRs: Dynamic 0-24.99% or fixed 0% APR
• Terms: 6- to 24-month plans designed for convenience and flexibility
• Order range: $199 to $10,000

Klarna Financing—UK offering

• APRs: 0%, 4.9%, 9.9%, 14.9% fixed APR options
• Terms: 6, 12, 24 month plans designed for convenience and flexibility
• Order range: £250 to £5,000

Note: If you can’t currently accept Klarna payments but you would like to, please reach out to your platform to inquire about enabling it.