Understand the key reasons disputes occur—such as non-received items or incorrect charges—and get an overview of Klarna’s structured approach to handling them fairly.
Disputes are a natural part of the post-purchase experience, allowing customers to raise concerns about their orders, such as returns, missing goods, or unauthorized transactions. Klarna’s Dispute Management system ensures these issues are handled in a fair, structured, and timely manner for both customers and Partners.
When a dispute is raise to Klarna, it is handle following a defined lifecycle, from the moment a customer submits a claim to the final resolution. And to understanding the dispute process is crucial to minimize financial losses, maintain customer trust, and stay compliant with Klarna’s terms.
The customer claims that the product or service never arrived. This may result from shipping delays, incorrect delivery, or failure to dispatch the item. The Partner is required to provide shipping details and proof of delivery.
Example:
- Scenario: A customer named Emily places an order for a laptop from ShopStore Electronics. After the expected delivery date passed, Emily contacts ShopStore to report that she hasn’t received the laptop.
- Dispute Trigger: Emily initiates a dispute through Klarna, claiming products not received
- Webhook:
payment.dispute.state-change.pre-arbitration - Expected Action: The Partner should provide tracking details, proof of shipment, and delivery confirmation if available.
- Resolution Pathway 1: ShopStore reviews Emily’s dispute and checks their shipping records. They confirm that the laptop was shipped but delayed due to an issue with the courier. ShopStore provides tracking information and proof of shipment through Klarna’s Dispute API, along with an updated delivery timeline. Emily receives the package and confirms its delivery through Klarna.
- Resolution Pathway 2: ShopStore reviews Emily’s dispute and finds evidence that the laptop was delivered to the correct address. They submit proof of delivery through Klarna’s Dispute API. Klarna reviews the evidence and determines that the package was delivered as promised. The dispute is closed in ShopStore’s favor.
- Required Evidence: Shipping confirmation, tracking ID, proof of delivery and recipient name for validation.
The customer believes that the received product is damaged, defective, or does not match the description on the website. Klarna may ask for documentation from both parties, such as photos, product descriptions, or return tracking. For information about what qualifies as "Significant deviation", please see our Merchant Protection Program.
Example:
- Scenario: James orders a set of dining chairs from HomeStyle Furniture. Upon delivery, he finds that one of the chairs is damaged.
- Dispute Trigger: James raises a dispute, stating that the goods were delivered in poor condition.
- Webhook:
payment.dispute.state-change.pre-arbitration - Expected Action: Partners should submit photos of the returned item, shipment details, and any customer correspondence.
- Resolution Pathway 1: HomeStyle Furniture reviews James's dispute and requests photos of the damaged chair. After verifying the damage through the provided images, they acknowledge the issue. HomeStyle Furniture offers James a replacement chair at no additional cost and ships the new item promptly. HomeStyle provides the evidence of replacement chair by Klarna Disputes API
- Resolution Pathway 2: HomeStyle Furniture reviews James's dispute and the provided photos. They find that the chair’s condition does not match the description of damage or believe the issue resulted from misuse after delivery. HomeStyle Furniture submits evidence via Klarna’s Dispute API. Klarna reviews the evidence, determines that HomeStyle Furniture is not liable, and closes the dispute in their favor.
- Required Evidence: Confirmation that changes will be made to order or alternative resolution was arrived at. Transaction IDs and/or numerical discounts in form of attachment is required
The customer identifies an error in the invoice, for instance, being charged for the wrong item, incorrect amount, or an extra fee. Partners may be required to adjust or reissue the invoice.
Example:
- Scenario: Olivia purchases a smartwatch from GadgetGrove using Klarna’s payment services. However, when she checks her bank statement, she notices that she has been charged twice for the same item.
- Dispute Trigger: Olivia contacts GadgetGrove and subsequently raises a dispute through Klarna, claiming an incorrect charge.
- Webhook:
payment.dispute.state-change.pre-arbitration - Resolution Pathway 1: GadgetGrove reviews their payment records and confirms that a duplicate charge occurred due to a system error. They promptly issue a refund for the extra payment through Klarna’s Dispute API and provide evidence, such as transaction logs and invoice copies, to support the resolution. Klarna reviews the submission and informs Olivia of the refund.
- Resolution Pathway 2: GadgetGrove reviews their payment records and finds no evidence of a duplicate charge. Their investigation shows that the transactions on Olivia’s statement correspond to separate orders or activities. GadgetGrove submits evidence via Klarna’s Dispute API to demonstrate that the charges were legitimate. Klarna reviews the evidence, determines that the charges are valid, and closes the dispute in GadgetGrove’s favor.
- Required Evidence: Relevant financial records and invoice copies in form of attachment.
The customer claims they did not authorize the purchase, suggesting potential fraud or misuse of their Klarna account. These disputes are prioritized and must be addressed quickly. Klarna may request fraud detection logs or customer verification data.
Example:
- Scenario: Michael notices a transaction on his account for a high-end gaming console from GameHub, a store he has never shopped at.
- Dispute Trigger: Michael suspects fraud and files a dispute through Klarna, stating that the purchase was unauthorized.
- Webhook:
payment.dispute.state-change.pre-arbitration - Expected Action: GamyHub should investigate the purchase and supply any fraud prevention measures taken (e.g., proof of delivery, communication with the recipient, etc).
- Resolution Pathway 1: GameHub investigates the transaction and finds that they can recall the package, and do so. They confirm that the purchase was unauthorized and promptly cancel the order. GameHub refunds Michael and provides the required evidence to clarify the situation. Klarna reviews the evidence, confirms the refund, and updates Michael.
- Resolution Pathway 2: GameHub investigates the transaction and finds no evidence of fraud. Their review shows that the order was placed from a device and location consistent with previous purchases associated with Michael’s account. They submit evidence via Klarna’s Dispute API. Klarna reviews the evidence and determines that the transaction appears legitimate.
- Required Evidence: Transaction details, customer verification steps, Proof of Delivery evidence in line with the delivery method, and any fraud reports.
The customer indicates they have returned one or more items from their transaction. They may be waiting for a refund or a corrected invoice. Partners are required to verify that the return has been received and to update the invoice accordingly.
Example:
- Scenario: A customer, Sarah, returns an item purchased from FashionFusion, an online apparel store. Despite receiving confirmation from the courier that the return was delivered to FashionFusion's warehouse, Sarah hasn't received her refund after 14 days.
- Dispute Trigger: Sarah contacts Klarna to initiate a dispute, claiming "Refund not received."
- Webhook:
payment.dispute.state-change.pre-arbitration - Expected Action: Confirm receipt of returned items; specify condition or reason if not accepted.
- Resolution Pathway 1: FashionFusion reviews their return records and confirms receipt of the item. They discover that the refund was delayed due to a processing error. FashionFusion promptly issues the refund to Sarah and notifies her of the resolution through Klarna’s Dispute API. Sarah confirms receipt of the refund, and the dispute is resolved and closed.
- Resolution Pathway 2: FashionFusion reviews their return records and finds no evidence of receiving the returned item. They submit proof via Klarna’s Dispute API, including warehouse logs and courier tracking data, showing that the return was never delivered. Klarna reviews the submitted evidence, determines that FashionFusion is not liable, and closes the dispute in their favor. Sarah is notified of the decision, and the case is resolved.
- Required Evidence: Return policy compliance, item photos, or tracking records for returned items, acknowledgement of return.
Customer claims that they are unable to return the goods due the Partner not following the requirements set forth in the Klarna Network Rules.
For transactions where Klarna has determined that the Partner is enrolled in the Risk Program and is in Major Breach, as defined in the Klarna Agreement (see the Dispute section for details), and the customer has not successfully disputed the transaction under another Dispute type.
This reason only applies to the "Debit Risk" Payment Program Partners.
Klarna identified that the transaction was not paid by the customer and reverses the Claim to the Acquiring Partner.