Klarna Merchant Services Agreement Beta

Last updated: January 14, 2020

The terms applicable to your use of Klarna services depend upon the location of your Customers. The Klarna Master Services Agreement - Europe applies to Klarna services offered to Customers in supported European countries. The Klarna Master Services Agreement - US applies to Klarna services offered to Customers in the United States.

Klarna Merchant Services Agreement - Europe

Klarna Payments is a payment method that enables end customers to use various payment options, including direct payments, pay after delivery options and installment plans. This Klarna Merchant Services Agreement, together with the General Terms and Conditions (the “GTC”), and any other attachments, schedules, exhibits, appendices, guidelines and other documents incorporated by reference (collectively, the “Merchant Agreement“), is made by and between you (“you” or “Merchant”) and Klarna Bank AB (publ), org.no. 556737-0431 (“Klarna”). By activating Klarna on your Stripe account, you agree to comply with the following terms in your use of Klarna. In the case of any discrepancy or inconsistency with the GTC or other incorporated document, this Merchant Services Agreement shall control.

The terms of the Merchant Agreement apply to entities and individuals (collectively referred to as “Merchant/Merchants”) using any of Klarna’s services (e.g. Klarna Invoice or Klarna Account), collectively “the Services”.

1. Background

Klarna is a company supplying payment methods to Merchants selling online and through other agreed sales channels. The abovementioned Services are supplied to each respective Merchant through integration between Stripe and Klarna.

2. Merchant – Klarna relation

The usage of Klarna’s services and thus acceptance of this Merchant Agreement creates a direct relation between each Merchant and Klarna (jointly referred to as “the Parties”). The specific contractual obligations are set forth below and in the GTC.

3. The Services

Klarna Invoice and Klarna Account are the Services provided by Klarna to each respective approved Merchant. Klarna Invoice and Klarna Account are defined as services where Klarna provides such Merchants with a data-system through which the Merchants can integrate their invoicing routine with Klarna’s order handling system. This system receives credit queries from the Merchants’ e-store(s) or physical store(s) as data-signals; these credit queries relate to a specific person, company, congregation, association or similar equivalent party (“Customer”).

A simultaneous credit report is obtained in respect of each credit query, the result of which determines whether Klarna is able to offer credit to the Customer. In the case of credit approval, Klarna then acquires the financial claim against the Customer (hereafter referred to as “Claim”) from the respective Merchant – against payment according to what is stipulated in the settlement section below. Klarna undertakes to manage the collection of each Claim through its acquisition. Any Claim arising from the Services shall be assigned to Klarna, giving it the sole and exclusive right to receive payment of the transaction amount from the Customer.

4. Settlement and Service Charges

Upon technical activation of an assigned Claim, Klarna will pay you, via Stripe, the transaction amount, after deduction of the applicable service charges (the “Service Charges”) and other amounts that Stripe or Klarna may be authorized to withhold. The Service Charges are determined in accordance with your agreement with Stripe.

5. Term & termination

This Merchant Agreement applies to your implementation and use of the Services. This Merchant Agreement shall continue in force for so long as your Stripe account is active, unless earlier terminated by either party pursuant to the GTC or terminated by giving three (3) months’ notice.

6. Restricted Businesses

You will contact us to review your integration if you operate within the Klarna Restricted Business Categories.

7. Entire agreement

This Merchant Agreement constitutes the entire agreement between the parties in relation to its subject matter and supersedes and replaces all prior oral or written representations or agreements between the parties.

Klarna Merchant Services Agreement - United States

This Klarna Merchant Services Agreement, together with the Klarna General Terms and Conditions (the “GTC”), and any other attachments, schedules, exhibits, appendices, guidelines and other documents incorporated herein or therein by reference or that the parties may execute from time to time during the Term (collectively, the “Merchant Agreement“), is made by and between you (“You,” “Your” or “Merchant”) and Klarna Inc., a Delaware corporation, with its principal place of business at 629 N. High St., Suite 300, Columbus, OH 43215 (“Klarna”). By using Klarna on Your Stripe account, You agree to comply with the following terms in Your use of Klarna. In the case of any discrepancy or inconsistency with the GTC or other incorporated document, this Merchant Services Agreement shall control.

1. Background and Scope of Services

Klarna is a provider of proprietary payment options for online stores and other agreed sales channels. Klarna Payments is a payment method that enables end customers to use various payment options, including direct payments, pay after delivery options and installment plans (“Klarna Payments”). Through this Merchant Agreement and Merchant’s partnership with Stripe, You may enable Your customers (“Customers”) to pay for goods and services via the products offered by Klarna as described in Section 2 below (the “Klarna Payment Options”), and integrate into Your online store(s) and other sales channels the parties may from time to time agree upon in writing (each, an “Authorized Store”). The Klarna Payment Options may include options offered by third parties, such as debit cards, credit cards, ACH or other means of bank transfer (“Third Party Payment Options”).

You may only enable the Klarna Payment Options and related services (collectively, and as used in the GTC, the “Services”) in Authorized Store(s) in the United States.

2. Payment Options offered by Klarna

Through Klarna Payments, Klarna may, on a transaction-by-transaction basis and in its sole discretion, offer Customers the following Klarna Payment Option(s) as selected by You:

(a) Deferred Payment: a Klarna Payment Option that enables Customers to defer payment for the purchase of Your goods or services for a specified period of time, subject to the terms and conditions of the Agreement (“Deferred Payment”).

(b) Slice It in X: a Klarna Payment Option that enables Customers to split the payment related to the purchase of Your goods or services into a number of substantially equal payments to Klarna (“Slice It in X”). Klarna discloses the exact frequency, number, and amount of payments to the Customer at checkout. Each Customer payment may be made utilizing Third Party Payment Options, and the terms and conditions related to Third Party Payment Options apply to Slice It in X.

(c) Credit Product: a Klarna Payment Option that enables Customers to purchase Your goods or services on credit by utilizing consumer credit account(s) (“Accounts”) established through a third party issuing bank (the “Issuing Bank”) that has an agreement with Klarna to originate such Account(s) (the “Credit Product”). The Credit Product is an open-end credit account and may include promotional offerings as may be updated from time to time. Klarna offers and establishes such Accounts for the Customer on behalf of the Issuing Bank, and authorizes and settles the Customer’s purchase of goods and services through such Accounts, subject to the Merchant Agreement, and any agreement between Klarna and the Customer.

Klarna will enable at Authorized Store(s), the Klarna Payment Option(s) that you select. By mutual written consent (email will suffice), Klarna may enable a Klarna Payment Option that was not initially selected by You, if available on Stripe. For the avoidance of doubt, new Payment Options may be subject to different pricing.

As between Klarna and You, Klarna will control, in its sole discretion, all decisions concerning credit application approval and underwriting of any Klarna Payment Option, including decisions on applicable credit limits for Customers.

3. Right to Receive Customer Payments

Pursuant to the GTC, any Claim arising from a Customer Election shall be assigned to Klarna, giving it the sole and exclusive right to receive payment of the Transaction Amount from the Customer.

4. Settlement and Service Charges

Upon Activation of an Assigned Claim, Klarna will pay You, via Stripe, the Transaction Amount, in accordance with the settlement terms in Your agreement with Stripe, after deduction of the applicable service charges (the “Service Charges”) and other amounts that Stripe or Klarna may be authorized to withhold. The Service Charges are determined in accordance with Your agreement with Stripe.

5. Term

This Merchant Agreement applies to Your implementation and use of the Services. This Merchant Agreement shall continue in force for so long as Your Stripe account is active, unless earlier terminated by either party pursuant to the GTC.

6. Exclusivity

With respect to this Merchant Agreement, Section 23 of the GTC is deleted in its entirety and replaced by the following:

If You offer services similar to the Services (simultaneously or instead of the Services), and Klarna determines, acting reasonably, that the manner in which You offer the other services is causing significant confusion for Klarna’s customers or material losses to Klarna, Klarna may provide You with a period of time (no less than 14 days) to address Klarna’s concerns. If You do not address Klarna’s concern to Klarna’s reasonable satisfaction, within the timeframe specified by Klarna, Klarna may terminate this Agreement with immediate effect.

7. Restricted Business

You will contact us to review your integration if you operate within the Klarna Restricted Business Categories.

8. Module Support

Section 7 of the GTC is deleted in its entirety.

9. Entire Agreement

This Merchant Agreement constitutes the entire agreement between the parties in relation to its subject matter and supersedes and replaces all prior oral or written representations or agreements between the parties.

Klarna Restricted Business Categories

You will contact us to review your integration if you operate within the following business categories that Klarna considers restricted:

  • Travel (including travel agents, car rental, and hotels)
  • Ticketing (including event tickets)
  • Booking Services
  • Digital Goods and Services
  • Marketplaces
  • Affiliate Businesses (businesses with greater than 10% of sales from affiliate programs)
  • Vouchers
  • Memberships
  • Subscriptions
  • Recurring Billing

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