Disputes are an unavoidable part of selling online. Whatever payment methods you accept, you will inevitably have to deal with disputes from time to time. The good news is that Klarna has a very clear dispute process you should follow in the event that a Klarna user has a dispute. This article outlines the process you should follow.
We’ve also written a detailed guide to offering Klarna as a payment method, and its benefits for merchants if you want some more background on the Klarna service.
What is a Klarna dispute?
A Klarna dispute happens when a customer challenges a payment made through Klarna. The reasons vary — items not delivered, the wrong amount charged, or a purchase they don’t recognise. When this occurs, Klarna places the payment on hold and asks the merchant to respond. You may be required to submit proof, such as shipping confirmation or communication with the buyer, to show the transaction was valid.
While Klarna disputes fall under the broader chargeback category, the platform has its own rules and shorter deadlines. Merchants who understand these requirements are better prepared to respond quickly, reduce losses, and keep revenue protected.
Klarna dispute reason codes
Klarna uses standardised reason codes to categorise disputes. Some of the most common include:
- return: buyer claims goods were returned but refund not received.
- goods_not_received: buyer claims the order never arrived.
- faulty_goods: buyer claims items were defective or not as described.
- already_paid: buyer claims duplicate or incorrect charging.
- incorrect_invoice: mismatch between order and invoice.
- unauthorised_purchase: buyer claims payment was made without permission.
- high_risk_order: flagged by Klarna’s risk systems.
When a dispute charge is raised, merchants often receive a Request for Information (RFI). This notification asks for specific evidence, such as order confirmation, proof of delivery, or refund records. Each reason code has evidence requirements, and Klarna provides templates for how to format your response. Submitting evidence in the correct format strengthens your defence.
Klarna dispute process
When a customer raises a dispute through Klarna, the case moves through a few clear stages:
- Inquiry – Klarna first asks the merchant for clarification. This is the best moment to resolve the issue quickly before it escalates.
- Request for Information (RFI) – If the dispute continues, Klarna will formally ask for supporting evidence, such as shipping records or order details. Merchants have to respond within a set deadline.
- Chargeback – If the case isn’t resolved, Klarna issues a chargeback. At this point, the funds are taken back and the merchant usually carries the loss.
Because Klarna chargebacks can’t be appealed, early action is critical. Merchants who respond promptly at the inquiry or RFI stage have the best chance of avoiding a chargeback.
Disputes can stem from many issues — from suspected fraud or unauthorised use, to goods not delivered, faulty products, or simple invoicing errors. Each requires different evidence, but the overall process stays the same.
Timelines & deadlines
Klarna enforces strict timelines for dispute management:
- Inquiry response: typically 21 days. In some cases, an RFI must be answered within 14 days or less, depending on the reason code.
- Chargeback evidence: once escalated, merchants usually have 12 days to submit all required documents.
- Finality: after escalation to chargeback, the dispute is non-defendable.
Missing a deadline usually results in losing the dispute. Merchants should set up systems to track notifications and requests in real time.
Submitting dispute evidence
Merchants can submit evidence through Klarna’s dashboard or via API. Both routes allow you to upload documents, but once submitted, evidence cannot be edited or resubmitted. One complete and accurate package is required.
Typical evidence includes:
- Order confirmation and invoices
- Tracking and shipping data
- Refund or return confirmation
- Customer communication records
File formats should be legible and standardised (e.g., PDF, JPG). Klarna recommends avoiding large or unclear files, as poorly formatted submissions may weaken your defense.
Klarna dispute fees
When a Klarna dispute escalates to investigation, merchants may be liable for a dispute fee. The fee is only applied once the case outcome is decided, not when escalation begins.
Merchants are not charged if the customer is found at fault, cancels the dispute, or fails to provide requested information. In such cases, the payment is reactivated without cost.
The dispute fee structure has two levels:
- Standard fee – applied under normal circumstances.
- Excessive fee – applied if the merchant’s dispute escalation rate exceeds 1.5% for at least three consecutive months with over 100 orders. The rate is calculated per merchant ID (MID), so multiple MIDs are assessed individually.
Typical fee levels are:
- UK: GBP 10 (standard) / GBP 20 (excessive)
- EU markets (e.g., Germany, France, Spain, Italy, Netherlands): EUR 15 / EUR 30
- US: USD 15 / USD 30
- Nordics: SEK 150 / 300, NOK 150 / 300, DKK 150 / 300
- Other markets: fees vary but usually follow a similar standard vs excessive structure.
Repeated disputes can quickly increase costs, especially if escalation rates are high. Monitoring dispute ratios and acting early to resolve inquiries reduces both financial impact and risk of being moved into the excessive fee category.
Tools and integration options for disputes
Klarna provides several ways for merchants to manage disputes, depending on their setup and volume of cases.
- APIs let you connect dispute handling directly into your internal systems, so cases can be tracked alongside orders and payments.
- Webhooks push real-time notifications when Klarna sends an RFI, issues a chargeback, or updates the status of submitted evidence.
- Merchant dashboards are available for teams that prefer a manual interface to review, upload, and monitor cases.
- Sandbox environments allow merchants to test the dispute workflow in advance, ensuring staff and systems are prepared before live cases occur.
With the right combination of these tools, businesses can automate much of the dispute process, get notified instantly when action is required, and avoid costly missed deadlines.
Klarna buyer protection: what merchants need to know
At the heart of Klarna’s policies is buyer protection. Customers are assured that if goods don’t arrive, are faulty, or are refunded late, they won’t be left out of pocket. For merchants, this guarantee creates obligations that can directly affect dispute outcomes:
- Goods must be shipped within the required timeframe.
- Tracking details must be accurate and provided promptly.
- Refunds must be processed quickly when agreed.
When these conditions aren’t met, Klarna will usually side with the buyer. That means merchants who align their operations with Klarna’s buyer protection standards are far more likely to win disputes and maintain customer trust.
Best practices to minimise Klarna disputes
Merchants can reduce Klarna disputes by focusing on prevention:
- Ship early and provide tracking – dispatch orders within 96 hours and upload tracking data.
- Maintain transparent product listings – accurate descriptions reduce claims of faulty or misrepresented goods.
- Adopt manual capture for delayed shipping – only capture payments when goods are ready.
- Communicate proactively – respond quickly to customer inquiries and requests to resolve issues before they escalate.
- Set clear refund policies – make it easy for buyers to understand how returns and refunds work.
Extra Klarna dispute considerations
A single transaction may generate multiple disputes, and Klarna allows this without limitation. Merchants must manage each case independently.
Klarna enforces strict adherence to its dispute process. Missed evidence, late responses, or incorrect submissions almost always result in merchant liability. Since Klarna chargebacks have no appeal process, compliance from the first step is essential.
Conclusion
Handling Klarna disputes comes down to three things: acting fast, keeping accurate records, and knowing the process inside out. Merchants who respond quickly at the inquiry stage, provide clear evidence, and stay aligned with Klarna’s buyer protection rules stand the best chance of avoiding chargebacks and lost revenue.
For businesses that want more support, Antom provides dispute management tools, API integrations, and flexible payment options that make it easier to stay on top of Klarna cases — and payment disputes in general — without adding extra workload.
