Klarna payments

Klarna is a global payment method that gives customers a range of payment options during checkout. These payment options enable customers to pay for purchases over time.

Paying with Klarna redirects customers to Klarna’s site, which displays payment options based on factors such as the customer’s currency, transaction amount, and the payment use case. After the customer selects a payment option, Klarna returns them to your site to complete the order. When the payment is accepted, you receive the entire order amount (minus fees) in your Stripe account. Klarna collects the initial payment from your customer and any future installment payments. If the customer can’t repay Klarna, Klarna takes loss liability.

Payment flow

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

Get started

You don’t have to integrate Klarna and other payment methods individually. If you use our front-end products, Stripe automatically determines the most relevant payment methods to display. Go to the Stripe Dashboard and enable Klarna. To get started with one of our hosted UIs, follow a quickstart:

• Checkout: Our prebuilt, hosted checkout page.
• Elements: Our drop-in UI components.

You can also manually list Klarna as a payment method and use it with Payment Links or the Payment Method Messaging Element.

Payment options

Depending on the customer’s currency and the transaction amount, Klarna can present customers with various payment options. Cart ranges and geographic availability for payment options are determined by Klarna and might change at their discretion. Regardless of the underlying payment option selected, Stripe makes the full amount of the funds (minus fees) available to you upfront and Klarna collects the purchase amount from your customer, who repays Klarna directly. The following table describes the payment options and the buyer countries that support each option for one-time and recurring payments.

Regional considerations

The following sections describe regional limitations for some payment options.

Recurring payment support

• Pay in full: The following countries don’t support Pay in full for recurring payments:

  Australia

  Norway

  Poland

• Pay later: Only the following countries support Pay later for recurring payments:

  Germany

  Sweden

  United States

• Pay in 3 or 4: The following countries don’t support Pay in 3 or 4 for recurring payments:

  Australia

  Finland

  New Zealand

  Poland

US states and territories

Among US territories, Klarna only supports Puerto Rico for all payment options.

Pay later is supported in all states except Montana (MT), New Mexico (NM), and Hawaii (HI). Accessible by request only. Contact us for access.

Pay in 4 is supported in all states except New Mexico (NM) and Hawaii (HI). Financing is supported in all states except Iowa (IA), West Virginia (WV), and Massachusetts (MA).

Cross-border payments

The following table describes the requirements for using Klarna internationally. For example, a Swedish business can present in EUR to a buyer in Germany because they’re both in the European Economic Area (EEA). However, an Australian business must present in AUD, and can only accept payments from buyers in Australia.

Prohibited business categories

In addition to the industry and business categories listed in Prohibited and restricted business, the following categories aren’t allowed to use Klarna:

• Charities
• Political organizations, parties, or initiatives
• B2B

For more information about Klarna eligibility for your account, go to your Payment methods settings.

Klarna branding

Let your customers know you accept payments with Klarna by including the Payment Method Messaging Element on your product and cart pages. You must comply with Klarna’s marketing compliance guides.

If you’re in the UK, there are FCA regulatory requirements in the UK regarding advertising Klarna’s BNPL payment methods. Failure to comply can result in criminal charges. Per these requirements, you must only advertise Klarna with messaging approved by Klarna. You can find Klarna approved messaging in Klarna’s UK Financial Promotion Rules.

Disputes

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.

When a dispute arises, communicate directly with your customer to try and solve the issue together. If you can’t reach a solution, Klarna intervenes to help solve the dispute. You can manage disputes in the Stripe Dashboard and using the API.

Normally, customers can open a dispute within 180 days of the original transaction. However, the 180-day limit doesn’t apply to the following situations:

• The customer reports that they never authorized the transaction
• The customer raises a legal claim with an external authority, such as the Central Arbitration Committee
• Local consumer protection rules extend the limit, for example, the right to object in Sweden
• The customer is contesting the transfer of the debt to an external collection agency

To learn how to use the Dashboard or API to manage disputes, see Respond to disputes.

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 might 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

A Connect platform can use Stripe Connect with Klarna to process connected account payments of all charge types.

Connected accounts with full Stripe Dashboard access

Connected accounts with access to the full Stripe Dashboard, including Standard accounts, can enable Klarna through their Dashboard. To check which accounts have enabled Klarna, use the capabilities hash in the accounts webhooks or APIs to see if the klarna_payments capability is set to active.

Connected accounts without full Stripe Dashboard access

To enable Klarna for connected accounts without full access to the Stripe Dashboard, including Express and Custom accounts, request the klarna_payments capability. Customers see the name of your connected account during checkout and in the Klarna app.

Buyer country filtering

Buyer country filtering applies when you enable a dynamic payment method on the Payment Element or Checkout Session. Klarna only displays as a payment method option if the buyer’s country is supported.

We determine the buyer’s country in the following priority order:

1. Shipping address country - The two-letter country code, not the full name of the country.
2. Geocoded country - The country based on the client-side IP address.

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).
• You must not permit use of Klarna for purchases by a person who might reasonably be considered to share a financial interest with you, including owners, directors, and employees of your business or any affiliated company.

If you’re in Australia, Klarna provides guidance on how to comply with the Design and Distribution Obligations (DDO) when accepting Klarna in Australia. Most Stripe users don’t need to do anything to comply. If you actively promote or recommend Klarna’s Pay in 4 product in Australia, you may be considered a “distributor” under the DDO and may have to:

• Help Klarna as needed to comply with the DDO, including only promoting Pay in 4 consistent with Klarna’s Target Market Determination (TMD)
• Promptly advise Klarna of any “significant adverse dealing” such as:
  • A major complaint or large number of complaints that Pay in 4 causes a customer harm or
  • A customer under 18 makes a purchase using Pay in 4
• If requested, provide Klarna with reports about any Pay in 4 complaints you receive
• If requested, provide Klarna with information related to any reported significant adverse dealings