Klarna FAQ

How to manage disputes on Klarna payments through Stripe

Once your account is enrolled to programmatic disputes after 15th November 2023, you can manage disputes via the Stripe Dashboard or API. Klarna disputes start an inquiry and an unresolved inquiry becomes a chargeback. During inquiry, you’re expected to reach out to customers and resolve the issue. At this point, you can issue partial or full-refunds if the case is valid. You don’t need to submit evidence to counter the inquiry dispute. The timeline to resolve the dispute is displayed in the dashboard and in the API evidence_details.due_by field.

If you feel the case is incorrect, you can wait till the case becomes a chargeback and then counter the dispute. You can read more on how to counter the dispute here.

What is the deadline to resolve the inquiry?

In most cases, the deadline is 21 days except for fraudulent cases whereby the inquiry will be immediately escalated to a chargeback.

What is the deadline to resolve the chargeback?

12 days. You can only submit one round of evidence using the API or Dashboard. Klarna dispute decisions are final — they have no appeal process.

Does the Stripe dispute reference (du_xxx) remain the same during the entire dispute cycle?

Yes. The dispute reference remains the same during inquiry and chargeback lifecycles.

Why is the dashboard not showing disputes that are currently open?

All disputes created prior to Nov 15, 2023 will be notified via email. You’ll also need to reply through email. Disputes created after Nov 15, 2023 will be notified via dashboard and you can submit evidence via dashboard or API.

Some Klarna disputes created after November 15th are immediately closed as lost. Why don’t I have the option to challenge and submit evidence for these disputes?

If the dispute is lost with the following message: “Unfortunately, the payment facilitator does not allow you to submit evidence for this type of dispute. The disputed amount of <amount> and the dispute fee will not be returned to you.”, that means that the dispute was created within Klarna’s systems prior to November 15th. Prior to November 15th, you would have managed such disputes via emails directly from Klarna. Therefore, you should have received an email from Klarna about this dispute before or after November 15th, at which point you would have had the opportunity to reply to that email with additional evidence. The Stripe dashboard dispute marked as lost refers to that dispute’s final resolution, and it is thus not possible to submit evidence and challenge that lost dispute.

All disputes created after November 15th will display from dispute creation to final resolution in Stripe’s Dashboard and API, and for all those disputes you are able to submit evidence and challenge the dispute as you would expect via the API and Dashboard.

Klarna Financing for 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.

This feature is not available by default for UK or EU merchants looking to offer financing to their UK payers

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—UK offering