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:
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:
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:
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:
This status contains two types of disputes.
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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COMING SOON (CW 16/CW17): 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.
‘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:
For Physical Goods, we will ask you:
For Tickets & Travel, we will ask you:
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.