Klarna covers disputes driven by customer fraud or inability to repay instalments, 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 Stripe, 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 Stripe 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 Stripe 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 Dashboard and via the API. If Klarna rules in favor of the customer, they may issue a chargeback, with funds withdrawn from your Stripe account.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’s Financing Product allows shoppers to buy now and pay over monthly instalments.
Configurable: Offer the best, most transparent Financing payment option, with dynamic features including fixed 0% APR or term lengths from 6 months up to 36 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 us.
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 36-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, 36 month plans designed for convenience and flexibility
Order range: £250 to £5,000