Disputes management overview
Understand dispute reasons, response timelines and dispute fees.
Disputes are a natural part of the post-purchase experience, allowing customers to raise concerns about their transactions, such as returns, missing goods, or unauthorized transactions. Klarna’s Dispute Management system ensures these issues are handled in a fair, structured, and timely manner for both customers and Partners.
When a dispute is raise to Klarna, it is handle following a defined lifecycle, from the moment a customer submits a claim to the final resolution. And to understanding the dispute process is crucial to minimize financial losses, maintain customer trust, and stay compliant with Klarna’s terms.
Dispute Reasons
Klarna supports several dispute types, each corresponding to a different kind of customer issue. Understanding these categories is essential for responding appropriately and providing the correct evidence during the resolution process.
Each dispute type triggers a specific response flow within Klarna, and understanding the nature of the issue is the first step toward resolving it efficiently.
Below are the most common dispute types:
Return Not Refunded
The customer indicates they have returned one or more items from their transaction. They may be waiting for a refund or a corrected invoice. Partners are required to verify that the return has been received and to update the invoice accordingly.
Example: A customer returns shoes but the refund hasn’t been processed.
Timeline
The request has a deadline of 14 days.
Requested information
We will ask you if you received the return. If you did, please make sure to adjust the invoice of the related transaction. If you received the return but do not accept it, make sure to explain your reasoning in the comment section (´Add reply´).
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.
- Have you received the return?*
- Yes, will make changes to the transaction
- Yes, but not accepted (Please specify why)
- Return not received
- Add reply (optional)
- Attachment (optional)
Return Not Possible
Customer claims that they are unable to return the goods due the Partner not following the requirements set forth in the Klarna Network Rules.
Timeline
Requested information
Products or Services Not Received
The customer claims that the product or service never arrived. This may result from shipping delays, incorrect delivery, or failure to dispatch the item. The Partner is required to provide shipping details and proof of delivery.
Example: A package was marked as delivered by the carrier, but the customer reports non-receipt.
Timeline
The request has a deadline of 14 days.
Requested information
For dispute related to Goods not received you will be asked to select the delivery method that suits your transaction. These have been categorized into Physical Goods, Intangible Goods and 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 transaction.
Physical goods
Please provide us with the following details:
- A document or documents containing the following details:
- The tracking ID of the delivery
- The address to which the purchase was delivered
- The Date the purchase was delivered
- The delivery status of the parcel (optional)
- One piece of additional evidence to prove the entire purchase was delivered. Options include, but are not limited to, packing list or delivery note, weight of items and parcel etc.
- A signature from the customer showing the product was received (for transactions >750 EUR) (optional) Intangible Goods
Please provide us with the following details:
- A document or documents containing the following details:
- The date the purchase was sent
- The email address the purchase was sent to (optional)
- The IP the purchase was sent to (optional)
- Any evidence the product was received, accessed or used (optional) On Demand/Food Delivery
Please provide us with the following details:
- A document or documents containing the following details:
- The customer's name (optional)
- The date and time of delivery (optional)
- The delivery status of the parcel (optional)
- The address to which the purchase was delivered (optional)
- The delivery choice (optional) In addition to the requests related to each category, the below information is required for all Goods not received disputes
- The tracking ID of the delivery
- The shipping carrier used to deliver the package
- The Date the purchase was delivered For information related to requirements, please refer to the Merchant Protection Program
Products Defective or Not as Described
The customer believes that the received product is damaged, defective, or does not match the description on the website. Klarna may ask for documentation from both parties, such as photos, product descriptions, or return tracking. For information about what qualifies as "Significant deviation", please see our Merchant Protection Program.
Example: A customer transactions a black leather wallet but receives a fabric one instead.
Timeline
The request has a deadline of 14 days.
Requested information
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 faulty goods or resending the product).
- Add reply (optional)
- Attachment (max. 7 MB)
Incorrect Amount
The customer identifies an error in the invoice, for instance, being charged for the wrong item, incorrect amount, or an extra fee. Partners may be required to adjust or reissue the invoice.
Example scenario: A customer was billed twice for the same item.
Timeline
The request has a deadline of 14 days.
Requested information
We will request from you to prove that the invoice created by you is correct. 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.
- Add reply
- Attachment (max. 7 MB)
Purchase Unauthorized
The customer claims they did not authorize the purchase, suggesting potential fraud or misuse of their Klarna account. These disputes are prioritized and must be addressed quickly. Klarna may request fraud detection logs or customer verification data.
Example: A Klarna user sees an transaction on their invoice that they didn’t place
Timeline
To ensure prompt support for our customers on this sensitive matter, we will send a request to you within 4 business days from the time the dispute is raised. Once sent, the request must be addressed within 7 days.
Requested information
The information requested depends on the type of transaction.
For Services, we will ask you:
- If the service has already been used
- If you have been in contact with the customer
- How you delivered the service (for example via email)
For Physical Goods, we will ask you:
- To provide shipping information and proof of delivery
- If you have been in contact with the customer
- Some customer-specific information
For Tickets and Travel, we will ask you:
- To cancel or refund the transaction if possible
- If the ticket has already been used
- If you have been in contact with the customer
- Some customer-specific information
- How you delivered the ticket (for example via email)
Please be aware that all fields are mandatory and must be completed in order to submit a response. For each follow-up request you receive (up to a maximum of 3 requests), you are required to respond within a 7-day deadline. However, please review individual contracts, as some merchants will only receive one request with no follow-up requests.
Non Compliance
For transactions where Klarna has determined that the Partner is enrolled in the Risk Program and is in Major Breach, as defined in the Klarna Agreement (see the Dispute section for details), and the customer has not successfully disputed the transaction under another Dispute type.
Timelines
For this dispute reason, Klarna will not send any requests to merchants. The dispute will be initiated by Klarna, immediately closed, and marked as a loss (with a delay of minutes or hours). The merchant will receive a pre-arbitration notification, and the dispute will transition directly to a closed state.
Non Guaranteed Payment Program
This reason only applies to the "Debit Risk" Payment Program Partners.
Klarna identified that the transaction was not paid by the customer and reverses the Claim to the Acquiring Partner.
Timelines
For this dispute reason, Klarna will not send any requests to merchants. The dispute will be initiated by Klarna, immediately closed, and marked as a loss (with a delay of minutes or hours). The merchant will receive a pre-arbitration notification, and the dispute will transition directly to a closed state.
Dispute Lifecycle
Each dispute in Klarna follows a structured lifecycle, from the moment a customer raises a claim to the final resolution, however this cycle may be different based on the dispute reason.
The dispute lifecycle ensures both the customer and Partner are given a fair opportunity to explain and resolve the issue. As a Partner, staying on top of dispute notifications, meeting deadlines, and submitting clear documentation are key to avoiding unnecessary chargebacks or fees.
flowchart LR
A(["PRE-ARBITRATION"]) --> |High-risk or Unauthorized transaction| B(["ARBITRATION PENDING"])
A --> |Unresolved After 21 Days|B
A --> |Escalation by Klarna| B
%% Arbitration Pending to Closed
B --> |Partner accepts loss| C(["CLOSED"])
D(["PARTNER EVIDENCE PENDING"]) --> |Partner submits evidence|B
D --> |Submission window expired|B
D --> |Partner accepts loss| C
%% Decision handling
B --> |Klarna requests evidence|D
B --> h[Klarna evaluates case]
h --> |Additional evidence required| D
h --> |Customer wins| K(["ARBITRATION APPEAL OPEN"])
h --> |Partner wins| C
K --> |Challenge expired or Partner accepts decision| C
K --> |Additional evidence required by appeal| B
Step 1: Dispute opening
When a customer raises a dispute, Klarna places the invoice on hold, which means that the customer is not required to pay while the dispute is active.
At this stage, Klarna will advice the customer to:
- Return the items following the Partner return policy in case of returns
- Reach out to you in case of other dispute reasons (goods not received, faulty goods and incorrect invoice)
Following that, we ask the customer to provide us with the necessary information to raise a dispute.
No immediate action is required from the Partner at this stage unless Klarna specifically requests information or documentation.
Step 2: Resolution time
The time period for you and your customer to resolve the dispute before Klarna steps in to support the investigation is called Resolution time and each dispute reason has a limited time.
Depending on the reason assigned, after a customer reports a dispute to Klarna you will have a defined Resolution time to resolve the case directly with the customer and with no additional intermediation from Klarna.
| Dispute reason | Calendar days* |
|---|---|
| Purchases unauthorized | 3** |
| All Other Dispute Types (Returns, Products not received, Incorrect amounts, Products defective...) | 21 |
*This rule may not apply in some cases.
*** If a chargeback was raised via the customers bank, escalation will be immediate.*
Unauthorized purchases have a Resolution time of 3 days due to the urgency.
All disputes are visible in the Disputes App and via the API once they have been raised by the customer. See Disputes App in Klarna Partner Portal for more information.
During this resolution time:
- Klarna expects the Partner and customer to communicate in transaction to resolve the dispute without Klarna intervention (e.g., return completed, invoice adjusted).
- If resolved, Klarna closes the dispute and updates the customer invoice accordingly.
- If not resolved in time, Klarna proceeds to request evidence from the Partner, where you can defend the dispute.
Step 3: Dispute escalation and investigation
If you and the customer can not reach a solution on your own within the given Resolution time, and the the dispute remains unresolved, Klarna moves into the investigation phase following these steps:
- 1.Evaluate the information provided by the customer. This will help us determine if a dispute is still valid or if it should be rejected.
- 2.If the dispute is valid, Klarna’s support team will reach out to you via the Disputes App in Merchant Portal or the Disputes API depending on your integration with Klarna and request additional information from your side.
- 3.You must submit supporting evidence within a specified timeframe called Request deadline.
Request deadline
A dispute request is always sent with a deadline. This period of time indicates until when you are able to submit a response for the requested information.
The deadline for the request follows these guidelines:
- First request for Purchases Unauthorized up to 7 days (168 hours).
- First request for all other dispute reasons up to 14 days (336 hours).
- For each follow-up request sent to you, you have a deadline of 7 days (168 hours).
Failure to respond will lead to Klarna resolving the dispute in favor of the customer and you will no longer be able to defend the case.
Step 4: Dispute resolution and closure
Once all required information is reviewed, Klarna’s support team will make a decision and resolve the dispute accordingly with one of the following outcomes:
| Status | Meaning |
|---|---|
| Closed – Won | The Partner’s evidence was accepted; the dispute is resolved. In this case the invoice is either adjusted by you or reactivated towards the customer and payments will resume. |
| Reversal (Closed – Lost) | When the dispute has been closed in favor of the customer and Klarna has performed a Chargeback to you on the transaction. This happens if you have not been able to effectively defend the dispute or chosen not to defend the dispute (Accept Loss or no response). |
| Rejected | When a customer has not provided the required evidence to proceed with the dispute it will be rejected. If there is information that is deemed incorrect or missing Klarna will reject the dispute before escalation, meaning Klarna will never start the investigation towards you. There are instances where Klarna’s Dispute Resolutions Team needs additional information from the customer following a response from you. If the customer fails to provide it before the deadline, the dispute is also rejected. In the event of a rejection the invoice is reactivated towards the customer and payments will resume. |
The closing reason Klarna assigns is important, as it may affect whether a dispute handling fee is charged to the Partner.
The Dispute processing will be communicated to you via the "Status" and "Closing Reason" visible on the Dispute Detail Page of the Dispute App. On the same page you can locate the date and time when the dispute was resolved.
The status indicates in what way a dispute was closed and informs you about the action that will follow.
Disputes time and amount limitations
Klarna offers customers the opportunity to challenge the outcome of a dispute and ensure that their concerns are properly addressed by allowing multiple disputes per invoice. This demonstrates Klarna's dedication to consumer protection laws and ensuring a fair resolution process. However, to prevent misuse of the dispute option, Klarna enforces certain boundaries and rules in the dispute process to maintain fairness, prevent abuse, and comply with regulatory obligations. This limits when and how many times customers are allowed to dispute and re-dispute an transaction.
Limit on number of disputes for a single transaction
There are different scenarios why an invoice gets disputed several times:
- The customer wants to present new evidence to defend a dispute.
- The customer disputes the invoice for different reasons e.g. goods not received, return and in incorrect invoice.
- Connected to a concern and reevaluation of the case
In transaction to support customers with these scenarios, Klarna has set a limit of three disputes per transaction. This limitation is also in place to align with industry standards and other payment providers.
Please note that there are a few exceptions where Klarna are required to raise a dispute outside of the Dispute Limitations. The exceptions include disputes raised in relation to:
- Unauthorized Purchases
- Legal claims raised via an external authority, such as the Central Arbitration Committee or National Board for Consumer Disputes
- Local legal consumer protection rules, i.e. the right to object in Sweden an agent is required to reopen a dispute again.
- Debt Collection*
- Debt collection refers to when an unpaid debt is moved to an external debt collection agency. If a customer disputes this action, Klarna is required by law to provide evidence that supports the customer's obligation to pay.
Limit on timeframe to open a dispute
Disputes can only be raised during the corresponding time according to the dispute type
| Dispute type | 1st dispute |
|---|---|
| Returns | 180 days (from capture) |
| Product or services not received | 180 days (from capture) |
| Incorrect amount | 180 days (from capture) |
| Product defective or not as described | 180 days (from capture) |