When a customer raises a concern—such as non-delivery, damaged goods, or unauthorized transactions—Klarna immediately notifies the Partner of the dispute. During this stage, the disputed amount is placed on hold, and a non-refundable dispute fee is charged.

Available actions for Partner:

• getDisputeDetails - Retrieve dispute details and customer evidence
• uploadAttachment - Upload supporting documents (PDF up to 7MB)
• respondToDisputeRequest - Submit evidence with optional partial refund proposal
• acceptLoss - Accept the dispute

Representment substates:

• EVIDENCE_REQUESTED - Can submit evidence before deadline
• EVIDENCE_REQUEST_EXPIRED - Deadline passed, dispute results in LOST
• EVIDENCE_WAIVED - Accepted loss via accept-loss endpoint
• REPRESENTMENT_AUTOMATICALLY_REJECTED - Amount below threshold, auto-accepted as LOST

Response deadline: Check expires_at field. Varies by dispute reason.

Transitions to:

• REPRESENTMENT - After submitting evidence
• CLOSED - If accept loss, miss deadline, or auto-closed

If the Partner provides evidence, Klarna reviews the case and makes a preliminary decision. If the Partner wins at this stage, the dispute is closed and the withheld amount is refunded (excluding the dispute fee).

Available actions:

• getDisputeDetails - Monitor status

Representment state: EVIDENCE_RECEIVED

Note: Cannot submit additional evidence during review.

Transitions to:

• PRE_ARBITRATION - Preliminary decision is LOST
• CLOSED - Preliminary decision is WON

If Klarna’s preliminary decision is not in the Partner’s favor, the Partner has the option to appeal within a set period. The dispute then moves to the arbitration phase, where Klarna undertakes a final review.

Available actions:

• getDisputeDetails - Review preliminary decision and reason
• acceptLoss - Accept the preliminary decision
• appealDispute - Challenge the decision

Decision details:

• preliminary_outcome - WON or LOST
• preliminary_outcome_detailed - Specific reason code
• arbitration_expires_at - Appeal deadline

Note: If no action before deadline, preliminary decision becomes final.

Transitions to:

• ARBITRATION - If appeal submitted
• CLOSED - If accept loss or appeal deadline expires

Final binding review after appeal. Klarna's arbitration team reconsiders all previously submitted evidence.

Available actions:

• getDisputeDetails - Monitor arbitration status

Note: Cannot submit new evidence during arbitration.

Transitions to:

• CLOSED - After final arbitration decision

All dispute paths eventually conclude in the “Closed” state. If the Partner wins, the previously withheld amount is refunded. If the dispute is lost or the deadline has expired, no refund is issued and the dispute fee remains non-refundable.

Outcome details:

• dispute_outcome - WON (Partner won) or LOST (customer won)
• dispute_outcome_detailed - Specific closing reason code
• closed_at - When dispute was closed

Financial impact:

• If WON - Disputed amount released to you
• If LOST - Disputed amount goes to customer, dispute fees may apply

Dispute window extended beyond standard timeframe.

Type: DISPUTE_WINDOW_EXTENSION

Reasons:

• DISPUTE_MIS_HANDLED - Previous process had errors
• REGULATORY_REQUIREMENT - Required for legal compliance

Dispute resolved immediately without standard defense period.

Type: IMMEDIATE_DISPUTE_RESOLUTION

Reasons:

• FRAUDULENT_PARTNER - Partner identified as engaging in fraud
• DISPUTE_MIS_HANDLED - Defense period skipped due to errors

Evidence submission: Upto 21 business days (check `expires_at` for specific deadline)

Evidence review: Upto 30 business days (varies by complexity)

Pre-arbitration window: 10 days to decide whether to appeal (check `arbitration_expires_at`)

Arbitration review: 10 business days (varies by complexity)