Klarna Pay Later
Klarna Pay Later is an invoicing payment method for Shopify Payments. When a customer selects Klarna Pay Later as their payment method, they agree to pay for their purchase at a later date. The customer can sometimes choose between a two week or a two month pay-back schedule. Klarna pays for the order immediately and the funds are included in your next Shopify Payments payout.
Klarna Pay Later requirements
To enable Klarna Pay Later for your online store, you need to use Shopify Payments.
Klarna Pay Later is available only to merchants in Germany.
Activate Klarna Pay Later
- Click Edit in the Shopify Payments section of your Payment providers. This reveals your accepted payment methods, including Klarna Pay Later.
- Click to Set up Pay later.
- Select a Business category and product type.
Payments with Klarna Pay Later
When a customer places an order and uses Klarna Pay Later to pay, the funds are paid to you on your next payout. To learn more about getting paid with Shopify Payments, see Shopify Payments pay periods.
If you refund a transaction processed by Klarna Pay Later, then you are not refunded the processing fee charged to you by Shopify Payments.
If a chargeback is opened against an order, then the customer is encouraged to contact you directly. Klarna contacts the customer if the dispute is not resolved after 21 days. Klarna then contacts you by email about the dispute. You have 7 days to respond to the dispute notification from Klarna. To learn more about chargebacks with Klarna, see the Klarna buyer protection policy.
Capture payments manually with Klarna Pay Later
You can manually capture your authorized Klarna Pay Later payments. If you have configured your settings to capture funds manually, then you don't automatically receive money from orders paid for with Klarna Pay Later. To get paid, capture the payment manually as soon as it's authorized. When you capture your payment manually, you are charged the Shopify Payments transaction fee based on the amount captured at that time. Payments from Klarna Pay Later must be captured within 28 days of being authorized.
Klarna Pay Later customer experience
After the customer selects Klarna Pay Later, they're redirected to Klarna's website to choose when to pay for their order.
If a customer accidentally transfers the remaining balance directly to you instead of Klarna, then you must cancel and refund the order. Then, replace the order with a duplicate draft order marked as paid (as the full amount has already been paid to you by the customer) and archive the order. This lets Klarna to receive a refund and cancel their own invoice. It also ensures that your sales stats and inventory are returned to the correct figures.
If you don't follow this process Klarna will continue to pursue the customer for the missing funds. If this happens, then the customer must take up the issue with Klarna, as Shopify is unable to assist with this matter.
Your customer is charged an additional fee if they choose a longer period of time to pay for their order.