Disputes App in Merchant Portal

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.

The 'Email & Dispute Settings' page consists of two sections: 'Email & Notification' and 'Chargeback Threshold'.

Email & Notification

In this section, administrators can add or modify contact emails and select the preferred language for dispute notifications. The "Local" language refers to the language used in the market where the order was placed. There are four sub-sections:

1. Disputes: Assign a single email and language for each merchant ID.

2. Unauthorized Purchases: Provide multiple email addresses for each merchant ID.

3. High-Risk Orders: Add multiple email addresses for each merchant ID.

4. Notifications: Customize the frequency of reminders sent for each dispute category, including 'Disputes', 'Unauthorized Purchases', and 'High-Risk Orders'.

Chargeback Threshold

Administrators can establish a chargeback threshold for each currency and merchant ID. If a dispute remains unresolved after the 21-day resolution period, it will be resolved with a chargeback towards the merchant.

Example:
A merchant sets a 10 EUR threshold. If a dispute or return is not resolved within 21 days, the case escalates, and we automatically close the dispute or return with a chargeback towards the merchant if the amount is less than or equal to 10 EUR (instead of sending a dispute request to the merchant).

Benefits for merchants:

• No need to allocate resources for defending low-value disputes.
• No Dispute Fee charged, as Klarna does not incur operational costs.

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. The Deadline for the first request is 14 days for all dispute reasons, with the exception of Unauthorized Purchases, where the deadline is 7 days. For each follow-up request* sent to you (with a maximum of 5 requests) you have a deadline of 7 days. Should you need to add to your response you have 60 minutes from submission to add, for example, information or attachments. Once the deadline has passed you will no longer be able to defend the case.

*Adyen does not allow follow-up requests, limiting the amount of requests to 1.

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. 

If you want to respond to a dispute, click the "Respond" button on the "Open Disputes" page. This will take you to an individual dispute page, where you can submit your response.
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Accepting the loss for multiple disputes at once

On the "Open Disputes" page, you can take action on disputes before going to the individual page. For example, if you don't want to handle disputes with a low value, you can select one or multiple disputes (by checking the box) and click the "Accept Loss" button. Note that if you select the header checkbox, all disputes in the table (on all pages) will be selected. This checkbox is only selectable if all disputes in the table have the same currency and have a dispute amount available. 

To quickly identify and sort disputes you want to accept the loss for, you can sort the "Dispute Amount" (e.g. from lowest to highest) or use the "Dispute Amount" filter.

Please beware: Once you accept the loss, the dispute(s) will be closed with a chargeback. Therefore, when clicking the ‘Accept loss’ button you will need to confirm your decision, to accept the loss, one more time.

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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.

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.

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. 

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Exclusive for managed merchants!

If you suspect a dispute to be a case of "Friendly Fraud", you have the option to highlight that when defending a case / responding to a dispute or return.

In the information box below the comment section you can check the box saying "Flag this dispute as suspected Fraud". By checking this box you are informing Klarna's Dispute Resolution Team that the evidence and information provided by the customer is deliberately false and misrepresents the actual events behind the dispute.

Please be aware that we take such allegations very seriously, so kindly ensure that you only flag cases as 'suspected fraud' when you have sufficient documentation to prove it. Remember to include all relevant documentation when submitting your response.

It's important to note that disputes or returns raised by customers with a high return rate are NOT considered fraudulent and should not be flagged as such.

Once you've submitted your response, our Customer Service agents will thoroughly examine all evidence provided by both you and the customer before making a decision.

‘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 a deadline of 7 days (168 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)

Please note that all fields are mandatory and need to be filled in in order to submit a response. Should you need to add to your response you have 60 minutes from submission to add, for example, information or attachments. For each follow-up request sent to you (with a maximum of 5 requests) you have a deadline of 7 days.

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 96 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.