Klarna payments

Klarna gives customers a range of payment options during checkout. Available payment options vary depending on the customer’s billing address and the transaction amount. These payment options make it convenient for customers to purchase items in all price ranges.

Depending on location, Stripe users can accept Klarna payments from customers in the following countries, provided the presentment currency matches the currency of the customer’s country, as detailed in payment options:

The customer is redirected to the Klarna payment page to pay. If the customer chooses a deferred payment option, Klarna may collect additional information for risk assessment and approval. After providing payment details to Klarna, the transaction succeeds, and the customer is redirected back to your website.

Payment flow

Below is a demonstration of the Klarna payment flow from your checkout page:

Get started

We recommend you use Checkout or the Payment Element so you can automatically add Klarna and other payment methods from the Stripe Dashboard, without changing your code. Stripe then determines the list of supported payment methods to show each customer by evaluating the currency, payment method restrictions, and other parameters.

Payment Links also supports adding from the Dashboard.

If your integration requires manually listing payment methods, learn how to manually configure Klarna as a payment.

Payment options

Based on your customer’s country and the transaction amount, Klarna offers various payment options. With each option, funds transfer to your Stripe account up front and Klarna collects the purchase amount from your customer, who repays Klarna directly. The options offered to the customer include:

• Installments: Pay for the purchase in 3 or 4 interest-free installments.
• Pay later: Pay for the purchase in 30 days.
• Financing: Spread the cost of a purchase over multiple months. This option usually involves interest and a credit check.
• Pay now: Pay for the purchase immediately by direct debit, card, or bank transfer.

* See the Klarna FAQs for more details on Klarna Financing availability in the UK and US.

Prohibited business categories

In addition to the categories of businesses restricted from using Stripe overall, the following categories are prohibited from using Klarna:

• Charities
• Political organizations, parties, or initiatives

Adding Klarna branding to your website

Klarna provides static visual assets and branding guidance you can use to increase awareness of your Klarna offering.

Disputed 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 these disputes. See Klarna’s Merchant Protection Terms for more details.

Sometimes simple errors or miscommunication can cause problems with an order. As a result, your customer might open a dispute. The customer can open a dispute within 180 days of the original transaction. The best way to resolve the dispute is to communicate directly with your customer to try and solve the issue together. If you can’t reach a solution, then Klarna might step in to help solve the dispute.

Klarna contacts both you and the customer to ask for compelling evidence that you fulfilled the purchase order. This evidence can include:

• Received return confirmation (for shipped goods returned from the consumer to you)
• Tracking ID
• Shipping date
• Record of purchase for intangible goods, such as IP address or email receipt
• Record of purchase for services or physical goods, such as phone number or proof of receipt

This information helps Klarna determine if a dispute is valid or if they should reject it. Make sure the evidence you provide contains as much detail as possible from what the consumer provided at checkout. You must submit the requested information within 14 days. If Klarna rules in favor of the customer, they might initiate a dispute, with funds withdrawn from your Stripe account. Klarna dispute decisions are final—they have no appeal process.

Refunds

You can refund Klarna charges up to 180 days after the payment completes. Klarna cancels any remaining payments on a refunded charge and returns the already-paid amount to the customer. Refunds usually take 5-7 business days to complete, but may take longer depending on the customer’s financial institution and the type of purchase.

Klarna supports full and partial refunds. You can also issue multiple partial refunds up to the amount of the original charge. Partial refunds update the Klarna order to reflect the new total amount.

• If the partial refund is greater than the remaining balance of the order, Klarna deducts the refund amount from the outstanding balance and returns the difference.
• If the partial refund is less than the remaining balance of the order, Klarna deducts the amount from the outstanding balance and spreads refunds evenly across the remaining payments.

Connect

You can use Stripe Connect with Klarna to process payments on behalf of a connected account.

Connect users can use Klarna with the following account and charge types:

Enable Klarna for Standard connected accounts

Standard Connect accounts can enable Klarna through their Dashboard. To check which accounts have enabled Klarna, use the capabilities hash in our accounts webhooks or APIs to see if the klarna_payments capability is set to active.

Request capabilities for Express and Custom connected accounts

Request the klarna_payments capability on any connected account you want to enable Klarna for. See this guide to learn more about requesting capabilities for your connected accounts. The name of your connected account is the name customers see during checkout and in the Klarna app.

Termination rights

In addition to the termination and suspension rights included in the Stripe Services Agreement, Klarna has certain additional rights to suspend or terminate your use of Klarna, such as for breach of the prohibited business categories listed above or for high dispute rates that aren’t promptly remedied.

Additional requirements

You acknowledge that:

• Klarna decides if customers can use Klarna for purchases and has the sole right to receive payment from Klarna customers. Stripe acquires those purchases for you and settles the funds to you.
• You must provide customers with any required or requested payment instructions or documents (such as VAT). These documents must refer to Klarna as the payee and not contain any of your bank details.
• You can’t impose fees or higher prices for Klarna purchases or act unfairly towards Klarna.
• You must promptly follow Stripe’s instructions to stop an order process or shipping to help reduce the risk of fraudulent transactions.
• You can’t use any design that’s confusingly similar to Klarna’s trademarks (see Klarna’s branding guidelines).

Payment method messaging

The Payment Method Messaging Element allows you to use one modal to promote all your buy now, pay later methods from product, cart, and payment pages.