Once your account has been enrolled for programmatic disputes after 15 November 2023, you can manage disputes via the Stripe Dashboard or API. Klarna disputes trigger an enquiry, and an unresolved enquiry becomes a chargeback. During the enquiry, you're expected to get in touch with the customer and resolve the issue. At this point, you can issue a partial or full refund if the case is valid. You don't need to submit evidence to counter the enquiry dispute. The timeline for resolving the dispute is displayed in the dashboard and in the API evidence_details.due_by field.
If you feel that the case is incorrect, you can wait until the case becomes a chargeback and then counter the dispute. You can read more about how to counter the dispute here.
What is the deadline for resolving the enquiry?
In most cases, the deadline is 21 days, except for fraudulent cases, where the enquiry will be immediately escalated to a chargeback.
What is the deadline for resolving 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 enquiry and chargeback lifecycles.
Why is the dashboard not showing disputes that are currently open?
All disputes created prior to 15 Nov 2023 will be notified via email. You'll also need to reply via email. Disputes created after 15 Nov 2023 will be notified via dashboard and you can submit evidence via dashboard or API.
Some Klarna disputes created after 15 November 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.", this means that the dispute was created within Klarna's systems prior to 15 November. Prior to 15 November, you would have managed such disputes via emails coming directly from Klarna. Therefore, you should have received an email from Klarna about this dispute before or after 15 November, 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 the final resolution of the dispute in question, and it is thus not possible to submit evidence and challenge that lost dispute.
All disputes created after 15 November will be displayed in Stripe's Dashboard and API, from dispute creation to final resolution. For all such disputes, you will be able to submit evidence and challenge the dispute as you would expect via the API and Dashboard.
The Klarna Financing product allows shoppers to buy now and pay in monthly instalments. Please note that Klarna Financing is different to other Klarna payment options, such as Instalments, 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 specialised consultancy service. If you are already registered, contact us.
Why is it a requirement to be registered with the FCA?
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 in and takes 8–12 weeks to come back. It costs between £100 and £500 to become a credit broker, depending on the size of the merchant. Merchants have to fill in 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