KCO Recurring reduces the effort for customers who want to sign-up for a subscription, enable on-demand charges, or are even making a purchase that may incur incidental charges. The functionality will enable you as a merchant to sell subscriptions and other recurring purchases through Klarna Checkout. It is as easy to set the subscription up as completing any purchase with Klarna Checkout. The function is based on a unique token that is created with the first purchase. This token which represents the customer and their purchase are then used to initiate an additional purchase using Klarna Payments.
This feature needs to be enabled in your Klarna account in order to work. To set it up, please reach out to Klarna merchant support
In the create order API call, add the field recurring and the optional recurring_description fields. See example:
If recurring is 'true', no financing payment methods will be available in the checkout.
Order lines containing recurring subscription items are required to include the subscription object. You can read more in our in-depth article on sharing subscription details with Klarna. The subscription object allows Klarna to make better underwriting decisions, present more appropriate payment options, and provide additional visual cues to consumers.
After the consumer has completed a purchase, the Checkout order will have a
recurring_token property see API that contains a token which the merchant will use to create the following recurring orders. This token must be stored for later use and it is up to the merchant to store and create orders with the token. The token can only be used by the merchant ID that created it
To be able to use the stored token you need to use the Klarna Payments API.
More documentation about reading tokens and checking their status can be found here.
In case the payment method registered on the token cannot be captured (
403), and the response is
PAYMENT_METHOD_FAILED, we recommend trying again in different times. If that does not work, we suggest sending a notice for the customers that they need to create a new subscription or add funds to their payment method if they wish to continue.
DIRECT_DEBIT payment method that cannot be captured, Klarna will fallback to invoice and reply as if it’s a successful capture.