Handle Disputes and Gather Evidence

Returns are an inevitable part of the purchase lifecycle. Handling them well ensures that customers maintain trust in you, the Merchant, and Klarna while minimizing errands and disputes. Below you, the Merchant, will find best practices for handling returns and fees, and providing customers up front information and communication.

To enhance your customer's return experience and prevent disputes, we recommend implementing the following steps:

• Self-Service Return Option: Always offer a self-service return option with clear instructions. This could include: - A return label in the package - A QR code on the confirmation page with a prepaid label
• No Return Fees: Never charge fees for returns.
• Domestic Return Address: Always provide a local return address.
• Prompt Return Registration: Register the return as soon as you receive it.
• Confirmation Email: Send a confirmation email immediately after the customer registers the return. This email should include: - Date of return receipt - Item(s) returned - Expected refund amount - Refund method - Expected refund timeline
• Clear Return Information: Display your return policy and a FAQ section about returns prominently on your website. This should cover: - Items eligible for return - Return process - Expected refund timeline
• Responsive Customer Service: Ensure your Customer Service team can respond to inquiries within 2 business days and are well-versed in return information: - Return process - Reasons for return denial - Return registration confirmation - Expected refund timeline By following these steps you, the Merchant, can make the return process more transparent and user-friendly, leading to improved customer satisfaction and fewer disputes.

In the world of online shopping, providing accurate and transparent information to customers is paramount. This section emphasizes best practices for you, the Merchant, including tracking information sent to customers, efficient order handling, and the importance of effective communication on your website. By prioritizing these aspects, you can significantly improve customer satisfaction, reduce disputes, and enhance their operational efficiency.

Prioritizing well organized order and delivery handling can help prevent goods not received, thus reducing errands and disputes. We recommend the following best practices:

• Quick Delivery: Deliver items to customers within 20 days of order date.
• Accurate Order Capture: This should occur at the time of shipment. If you send multiple packages (partially fulfill the order), capture the amount for only the sent items.
• Thorough Cart Page: The cart page is a great first place for customers to get shipping information such as: - Shipping options and costs - Additional shipping or customs fees - Estimated arrival time
• Send Confirmation Emails: Providing information to customers upfront can reduce errands. It is best practice to send customers confirmation emails when: - Order has been placed (order confirmation) - Order has been shipped
• Share Tracking ID: Providing customers with a traceable tracking ID empowers them to track orders independently. Tracking ID can be made available to customers either via: - Order confirmation email - Order shipped email
• Clear Shipping Information: Share easy-to-locate details for customers to check. We recommend clearly stating in your website’s Frequently Asked Questions: - Order processing time prior to shipment - Typical shipping timeline - Typical delivery timeline per country / region - How you provide the tracking ID
• Effective Goods Not Received Support: Give customers the ability to easily report goods not received issues. We recommend: - Providing the reporting process via a dedicated email address or user-friendly form - In website FAQs, explain how customers can report a problem or return and its process - In website FAQs, inform customers when and how to contact Klarna
• Knowledgeable Customer Service: Ensure your representatives respond to inquiries within 2 business days and that they can provide: - Order and delivery confirmations - Expected delivery timelines / tracking ID - How to report issues with you - When and how to contact Klarna

Faulty products, or significant deviations, can taint the shopping experience and negatively impact customers trust in you, the Merchant, and Klarna. In this section we highlight key areas for you, the Merchant, to ensure product quality and customer satisfaction. Accurate product descriptions, a precise definition of faulty goods, and a simple reporting process empower customers to make informed decisions. Through evidence submission and swift resolution, partners should address issues efficiently, either offering refunds or replacements.

The following best practices will help drastically reduce customer complaints around faulty goods disputes:

• Accurate Product Descriptions: Provide detailed and accurate product descriptions, including specifications and high-quality images. This information should be visible to customers while shopping and during checkout.
• Define Faulty Goods: Provide a clearly stated policy that defines faulty or defective goods and explain how you handle these situations.
• Provide Reporting ProcessCustomers should be able to easily report faulty or defective goods: - Through their account. - By contacting your customer service.
• Swift Resolution: You should swiftly process customer requests for faulty products by: - Issuing a refund. - Sending a replacement at your own expense
• Customer Service SupportYour customer service should be responsive and provide a first response within 2 business days to address any questions or concerns about product quality, incorrect items, and refund confirmations. You should be able to take necessary actions to correct any issues.

When customers purchase online it’s important to be transparent and ensure that they know what they are paying for. When a customer has completed their order, they do not want any surprises when they see the invoice later on. Customers need to understand what items have been added to the cart. In the event of upselling you, the Merchant, has to make sure that the customer is aware of what is happening, can see the added products and prices in checkout. If hidden fees are added to the total order amount, or if it’s not clearly stated that a discount has been added, questions will most likely be directed to Klarna and you, the Merchant. Not only does this confuse customers, it can also make them lose trust as they might feel that they have been fooled. Because of this, it’s important for you, the Merchant, to ensure a detailed checkout summary. By following these best practices the partner can reduce both operational costs and disputes.

The following best practices will help drastically reduce customer invoice questions and incorrect invoice disputes:

• Remove Out of Stock Items: It is best practice to regularly update your website to reflect current item availability. To help customers further, you could show an estimated item restock time and provide a notification option.
• Ensure Accurate Checkout: Clearly present goods before checkout and include: - Accurate items, pictures, descriptions, sizes, quantities, and prices - Accurate order total with any discounts, promotions, or fees listed - Note of any upselling and ability to skip or remove
• State Subscription Services: If you offer subscription services, we suggest clearly stating this prior to purchase completion to prevent canceled orders and disputes.
• Prevent Duplicate Orders: Implement necessary security measures during the checkout process. Confirm successful order submission with a confirmation pop-up or message.
• Send Order Confirmation Email: Soon after order completion, send a confirmation email to customers with an order summary showing: - Order number - Accurate items, pictures, descriptions, sizes, quantities, and prices - Accurate order total with any discounts, promotions, and fees listed - If shipping in multiple packages, note that this will create multiple statements with the Klarna order
• Send Accurate Orders to Klarna: Send Klarna the same item names, photos, and order details shown on your website and in your order confirmation emails. This ensures accurate expectations and avoids errands and disputes.
• Share Incorrect Invoice Information: Clearly state in your website FAQs that customers should reach out to you with incorrect invoice and duplicate order concerns. Customer questions that should be referred to Klarna: - Payments and due dates - How to dispute orders in the Klarna app - Refunds (only if you have registered a return to the order
• Knowledgeable Customer Service: Ensure your representatives respond to customer inquiries within 2 business days and are able to answer questions regarding: - Out of stock items - Incorrect invoice concerns - Duplicate order issues - Take needed action - When to reach out to you versus Klarna

When a customer raises a dispute, they need to provide Klarna with valid evidence to support their claim. The specific information required varies based on the nature of the dispute (dispute reason) to ensure it is relevant to the issue at hand.

If the necessary evidence is provided and the matter is not resolved between merchant and customer within the set timelines, an investigation might be initiated from Klarna's side and the dispute will show for you under "Open disputes" in the Disputes App when you are using the Merchant portal App flow, on the other hand, if you are using the email flow you will receive an email with a link to the webform.

We will request the shipping information (shipping date, carrier, and tracking number) and the proof of delivery from you (including delivery time, address, and name of receiver). In addition you will be asked to select the delivery method that suits your order.

These have been categorized into three categories:

• Physical Goods,
• Intangible Goods
• On Demand/Food Delivery Each category includes requests tailored to get the most relevant information pertaining to your dispute. Please note that you should only select the category that applies to your order.

For Goods not Received disputes the main piece of evidence is a valid Proof of Delivery (POD). This document provides us with enough detail to confirm the goods have been correctly delivered to the customer as ordered. Depending on the type of goods and how they are delivered this POD can look different. We expect you to provide a POD as an attachment, it is not sufficient to provide a tracking link. The POD must meet the requirements set out in the Merchant Protection Program.

Klarna cannot accept other evidence on its own, for example forwarding emails from customers saying they received the goods. You can of course provide this in addition to a POD, but without a valid POD the dispute will be decided in favor of the customer.

In general if the customer does not accept the delivery of the order or does not pick-up the goods, they will be sent back. However, this is not a valid use of the right of withdrawal (in the EU) nor is it considered a valid return. The customer is expected to accept delivery and follow the right of withdrawal and/or the store's return policy. If a customer has not accepted the delivery make sure this information is included either in the POD or in the response to Klarna.

These are usually the most complex disputes. Questions we commonly ask are “Have you been in contact with the customer?” and “Have you come to an agreement?” (such as refunding the defective product or resending the product).

Accepted evidence includes:

• Proof that the claim has been solved
• Explanation of why the claim is invalid
• Offer of resolution (repair, replacement, refund)
• Prepaid return label

We will request evidence from you to prove that the amount is correct. This dispute reason can include a variety of scenarios, including missing discounts, wrong price, return not registered, cancellation or invalid fees. For example if a customer claims that a discount is missing (backed up by evidence) you need to prove why the discount was not applicable.

We will ask you if you received the return. If you did, please make sure to adjust the invoice of the related order. If you received the return but do not accept it, make sure to explain your reasoning in the comment section (´Add reply´). If you have not received the return, but the customer used your return label, please check on the status and give a more detailed response than return not received. If the customer used your label, you are liable for the return, even if it is lost in transit.

If you have more information about the return, for example the tracking ID belongs to a different order, an empty box was returned, wrong items were returned, etc. please make sure to clearly state this in your response. If you provide customers with a pre-paid return label and the customer has not used it, please include this information in your response.

Please note that if you select the option indicating that you will make adjustments to the statement you are committing to performing a refund equal to the disputed amount. If you do not perform said refund within 96 hours of responding, we will perform an automatic chargeback of the disputed amount.

When a customer raises a dispute, they need to provide Klarna with valid evidence to support their claim. The specific information required varies based on the nature of the dispute (dispute reason) to ensure it's relevant to the issue at hand. If the necessary evidence is provided and the matter isn't resolved within the set timelines, an investigation might be initiated.

Once the customer has agreed to the conditions to raise a dispute Klarna will request further information regarding the Merchant contact. In this step, the customer provides Klarna with a basic Proof of contact.

Once the customer has provided Klarna with a basic Proof of Contact they need to provide information specific to their problem. Below is a breakdown per dispute reason.