Klarna Docs - New Version Coming Soon: Disputes App in Merchant Portal

New Version Coming Soon: Disputes App in Merchant Portal

In this article you will find an overview of all features provided in the Merchant Disputes App and how to handle/ respond to disputes.

On the ‘Open disputes’ page, you will be able to find all disputes that require input in order to be resolved. The deadline shows the final date until you can respond to the request. In general, all open disputes will be sorted by the nearest deadline. This means the dispute with the closest deadline appears on top.  

The ‘dispute created’ date on the other hand tells you on which day the consumer raised the dispute with Klarna. 

Further, the ‘Open disputes’ page is divided into two tabs:

  • Response required
    These disputes are awaiting your response. Please click on the button ‘Respond’ in order to open the dispute detail page, where you are able to defend the dispute by submitting your response.
  • Under review
    Disputes under review have already been responded to, by you. These cases are ready to be picked up by our customer service in order to be resolved.

The ‘Unauthorized purchases’ page is structured the same way as the ‘Open disputes’ page. However, on this page, you will only find disputes with the reason ‘unauthorized purchases’. These cases are raised, or flagged, by the customer as potential fraud. Therefore, these disputes are more sensitive and have a shorter deadline compared to general disputes such as ‘returns’.

The ‘High-risk order’ page is structured the same way as the ‘Open disputes’ page. However, ‘High-risk orders’ are not a dispute reason as per Klarna’s definition, as these are not raised by a customer. These orders have been identified as high risk based on Klarna's internal alarm and flagging systems, set in place to protect our merchants from potential fraudulent activities. As the aim for the merchant is to cancel such orders before sending them, these requests are very time-sensitive. Therefore, we dedicated an individual page to them. 

On the ‘All disputes’ page, we provide you with an overview of all disputes raised with Klarna. This includes:

  • Disputes that have been raised with Klarna, but have not yet been classified as cases that need our customer service’s support in order to be resolved
  • Disputes where our customer service teams stepped in and requested information from you in order to resolve the case
  • Disputes that have been resolved

The ‘dispute created’ date states the day the dispute was raised with Klarna. On the ‘All disputes’ page, all cases are sorted by the ‘dispute created’ date. This means the dispute with the oldest creation date (the case that is open the longest) appears on top.  

Further, the ‘All disputes’ page is divided into four tabs:

  • All -> On the ‘All’ tab you will be able to find an overview of all disputes.
  • Open -> On the ‘Open’ tab you are presented with all disputes which require your input or are under review since you already submitted the information.
  • No response required -> Under ‘No response required’ you will be able to find all disputes that have been raised with Klarna which are either within the ‘resolution time’ or are in the first phase of investigation by our support teams. 
    Resolution time: Klarna pauses the invoice/ holds the case while the customer and you, the merchant, have time to resolve the dispute with one another.
  • Closed -> All disputes that have been resolved are still visible in the ‘Closed’ tab. However, for legal reasons, all cases are removed from the Disputes App 90 days after they have been resolved.

On the ‘Email settings’ page, admins of the Merchant Portal account are able to add/ edit their contact email addresses & the language you want to be contacted in for each dispute. The email addresses are used to send grouped reminder emails in case the disputes are close to reaching the deadline. If you choose the contact language “local”, you will be contacted in the language of the market the order was placed in.

Further, the ‘Email settings’ page is divided into three tabs:

  • Disputes -> For general ‘Disputes’ (e.g. returns), you can only provide one contact email address & contact language per merchant:ID. You will receive a grouped reminder email if there is at least one dispute with a deadline < 72 hours. This reminder is sent once per day.
  • ‘Unauthorized purchases’ -> As ‘unauthorized purchases’ are more delicate and therefore have a shorter deadline, you receive a grouped reminder email if there is at least one dispute with a deadline < 24 hours. The reminders are sent at different hours of the day, this way all the cases coming in throughout the day are covered. For unauthorized purchases, there is a maximum of 2 reminders sent per day.
  • Coming in March:
    ‘High-risk orders’ -> As ‘high-risk orders’ are most urgent to be solved (by ideally canceling the order), you will receive a grouped reminder email if there is at least one case with a deadline < 24 hours. The reminders are sent at different hours of the day, this way all the cases coming in throughout the day are covered. For high-risk orders, there is a maximum of 4 reminders sent per day.

This status contains two types of disputes.

  • After a dispute is raised with us, we pause the invoice/ hold the case and encourage the customer to solve the dispute directly with you, the merchant. As we do not step in during this phase and we do not request any information from you, a deadline is not needed and therefore ‘not set’ yet. In this scenario, the dispute is still within its ‘resolution time’.
  • If the customer and you, the merchant, have not been able to resolve the dispute, the dispute will be escalated, so our customer support teams can step in to support the investigation. In this scenario, the dispute escalated and our support teams started their investigation.  For these cases, you will be able to receive some general dispute information in the Disputes App by clicking on the ‘view’ button. Once Klarna’s customer support team has gathered all relevant information provided by the customer, they will send a request, asking for your input. Once the request is sent, a deadline will be set automatically and the dispute will get the status ‘response required’.

After a dispute is escalated, meaning that the customer and you, the merchant, have not been able to reach a resolution, Klarna steps in to support the investigation. After we have gathered all relevant information from the customer, we will contact you requesting information in order to support solving the dispute. A dispute request is always sent with a deadline, indicating when you are able to submit the requested information. After you have submitted your initial response, you will only be able to submit additional information & attachments for an extra 60 minutes. Once the deadline has passed you will no longer be able to defend the case.

This means that you submitted your information and our customer support teams are ready to pick up the case again, in order to resolve the dispute.

This means that the dispute was closed and you, the merchant, defended the dispute successfully.

This means that the dispute was closed in favor of the customer and you, the merchant, will be held liable to pay. Thus, we will activate a chargeback towards you.

You, the merchant, solved the dispute by refunding the order yourself. One very common example is in the case of a return. E.g the customer informed us about a return and you, the merchant, received the return and updated the statement towards the customer accordingly. 

Once we send you a dispute request, you have the possibility to accept the loss for the dispute. In this case, we will resolve the dispute for you by performing a chargeback. 

As ‘high-risk orders’ are not considered 'typical' disputes, and thus do not follow the same process, these cases do not end up with a decision in favor of the customer or you, the merchant. These cases get solved by you canceling the order or providing us with the shipping information in case the order was already sent. 

Not every dispute is the same and therefore the below information requested per dispute is set as the standard but can and will deviate if necessary in order to resolve the dispute.

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.

We will request the shipping information (shipping date, carrier, and tracking number) & the proof of delivery from you (including delivery time, address, and name of receiver).

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). 

We will request from you to prove that the invoice created by you, the merchant, is correct. E.g. If a customer claims that a discount is missing (backed up by evidence) you need to prove why the discount was not applicable.

As the customer claims that they already paid directly to you, the merchant (and not to Klarna), we request from you to look for the payment within your own systems and adjust the Klarna invoice accordingly. 

‘Unauthorized purchases’ are classified by a customer reporting that they have never made the purchase. Thus, customers are classified to be victims of fraud. 

As we aim to support customers with this sensitive topic as quickly as possible, we send a request to you, the merchant, with an initial deadline of 24 hours. However, if you are not able to provide the requested information within the first 24 hours, we extend your deadline by another 72 hours. 

The information requested depends on the type of order. 

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 (e.g. via email)

For Physical Goods, we will ask you:

  • To provide shipping information & proof of delivery
  • If you have been in contact with the customer 
  • Some customer-specific information

For Tickets & Travel, we will ask you:

  • To cancel or refund the order 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 (e.g. via email)

High-risk orders are suspected to be fraudulent orders, where a customer’s personal details (e.g.) payment information was unrightfully used. Klarna’s internal systems are able to flag this and send requests to alarm you. 

As suspected high-risk orders are very time-sensitive, the deadline for such a request is set to 24 hours. But, if no action is taken within the first 24 hours, we extend the deadline by another 72 hours. 

If possible, please cancel this order. If the order was already shipped, please provide us with the shipping information & try to stop the order from being delivered.

If the order was already shipped, please make sure to provide us with the shipping information for each shipment that was made. If you already provided the shipping information to Klarna when you captured the order, you do not need to send us this information again. We will gather information ourselves, once we close the request.

As contractually stated, if you do not respond to our dispute requests within the given timeline, you, the merchant, are held liable for the dispute. Therefore, we will activate a dispute-related chargeback towards you and resolve the case in favor of the customer. In order to prevent such losses, please make sure to respond to all dispute requests before the deadline expires.   

In order to win a dispute, you need to provide valid proof. If you are unable to provide this proof (e.g. proof of delivery), you, the merchant, are held liable for the dispute. Therefore, we will activate a dispute-related chargeback towards you and resolve the case in favor of the customer.

You, the merchant, are able to accept losses for disputes. By accepting the loss for a dispute, you do not need to investigate any further into the case. We will close the dispute for you by activating a chargeback towards you. Therefore, the dispute will be resolved in favor of the customer.