Klarna is one of the best-known payment brands in Europe. Customers use it to pay in full straight away, pay later or spread the cost, and many expect to see it at checkout. For merchants, Klarna works differently from cards: Klarna pays you, takes on the customer’s credit, and handles disputes through its own process rather than card chargebacks.
This guide explains how Klarna works for merchants, the payment options customers see, how fees are structured, how disputes and refunds work, and what high-risk merchants should know before adding it.
Key takeaways
- Klarna offers customers several ways to pay: pay in full, pay later (typically within 30 days) and pay over time in instalments or with financing. Klarna decides which options each customer sees.
- The merchant is paid by Klarna according to its settlement schedule. For pay later and instalment purchases, Klarna carries the risk if the customer doesn’t pay.
- Klarna charges merchants a fee per transaction. The rate depends on your market, products and contract, so ask for a quote rather than relying on published examples.
- Disputes go through Klarna’s own dispute process, with short deadlines for merchants to respond.
- Sofort, the German bank transfer method Klarna owned, was discontinued as a standalone method on 31 March 2025.
What is Klarna?
Klarna is a Swedish payments and shopping company best known for buy now, pay later. At checkout, the customer chooses Klarna, Klarna checks the purchase, and if it is approved the merchant ships the order. The customer then pays Klarna according to the option they chose.
For the merchant, a Klarna payment behaves like a guaranteed sale: you receive the money from Klarna, not from the customer, and you don’t need to chase late payments.
Klarna payment options
| Option | How the customer pays | What it means for you |
|---|---|---|
| Pay in full (pay now) | Immediately, by card, bank transfer or wallet, through Klarna | A fast checkout for customers who already have Klarna |
| Pay later | Receives the order first and pays later, typically within 30 days | Klarna carries the risk if the customer doesn’t pay |
| Pay over time | In instalments or with financing over a longer period, after a credit check | Can support higher-value orders; Klarna carries the credit risk |
Which options are available depends on the customer’s country, the order value and Klarna’s own checks. Merchants can’t choose which option a particular customer is offered.
How Klarna payments work for merchants
- The customer chooses Klarna at checkout and picks a payment option.
- Klarna checks and approves the purchase.
- You confirm the order and ship the goods or provide the service.
- Klarna settles the amount to you, minus its fees, according to your settlement cycle.
- The customer pays Klarna now, later or in instalments.
Klarna also requires certain wording about its payment terms on your website, so check its merchant requirements before you go live.
Klarna fees for merchants
Klarna doesn’t charge the customer for standard pay in full or pay later purchases paid on time. Its revenue comes largely from merchants, who pay a fee on each Klarna transaction. Typically that is a percentage of the order value, sometimes with a fixed amount per transaction.
What you actually pay depends on:
- the country you sell in;
- the payment options you offer;
- your industry, order values and volumes;
- whether you contract with Klarna directly or through a payment provider.
Klarna is often more expensive per transaction than debit cards or bank payments such as iDEAL or Swish. Merchants accept that because Klarna can increase conversion and order values. Compare the fee with what you gain, and ask for the full fee schedule, including refund handling, before you sign.
Disputes and refunds
A Klarna purchase is not a card payment, so card chargeback rules don’t apply. Instead, disputes go through Klarna’s own dispute process:
- When a customer raises a dispute, Klarna puts their payment on hold.
- You and the customer get a short window to resolve it: Klarna’s documentation gives 3 calendar days for unauthorised purchase claims and 21 days for other dispute types.
- If it isn’t resolved, Klarna asks you for evidence, such as proof of delivery.
- If you don’t respond in time, Klarna normally decides in the customer’s favour.
Refunds are made by the merchant through Klarna or your payment provider, and the customer’s Klarna balance is adjusted. Fast refunds and clear delivery tracking keep disputes down, just as with card chargebacks.
What happened to Sofort?
Klarna bought Sofort, the German bank transfer method, more than a decade ago. Sofort was discontinued as a standalone payment method on 31 March 2025, and its functions were consolidated into Klarna. If you used Sofort, customers can now pay by bank through Klarna’s pay in full option, or you can offer other bank payment methods for your markets.
Klarna for subscriptions and high-risk merchants
Klarna can be used for some recurring payments, depending on the market and the product. If you run a subscription business, check which Klarna options support recurring billing in your countries.
Like card schemes, Klarna has its own rules on which businesses it accepts. Some high-risk categories are restricted or not accepted at all, and Klarna decides case by case. If you sell adult content, gambling, CBD or similar products, ask early whether Klarna is available for your business, and don’t build your checkout around it before you have an answer.
Klarna vs cards vs bank payments
| Klarna | Cards | Bank payments (iDEAL, Swish, Wero) | |
|---|---|---|---|
| Customer can pay later | Yes | Only with a credit card | No |
| Who pays the merchant | Klarna | Your acquirer | Your payment provider |
| Disputes | Klarna’s own process | Card scheme chargebacks | No card-style chargebacks |
| Typical cost | Often higher | Varies by card type | Often lower |
Most merchants in Europe offer Klarna alongside cards and the main local methods of each market. Our guide to local payment methods in Europe covers the options country by country, including Wero and Bancontact.
Frequently asked questions
How much does Klarna charge merchants?
Klarna charges merchants a fee per transaction, usually a percentage of the order value and sometimes a fixed amount as well. The rate depends on your country, payment options, industry and volumes, so ask Klarna or your payment provider for a quote.
Does Klarna pay the merchant upfront?
Klarna settles approved purchases to the merchant according to its settlement schedule, minus its fees. The customer then pays Klarna, now or later. For pay later and instalment purchases, Klarna carries the risk if the customer doesn’t pay.
Can customers file a chargeback on a Klarna purchase?
Disputes on Klarna purchases go through Klarna’s own dispute process, not card chargebacks. Klarna pauses the customer’s payment, asks you to resolve the issue or provide evidence within a short deadline, and decides if you can’t agree.
Is Sofort still available?
No. Sofort was discontinued as a standalone payment method on 31 March 2025 and consolidated into Klarna. Customers can pay by bank through Klarna’s pay in full option instead.
Can high-risk merchants use Klarna?
It depends on the business. Klarna has its own rules on which industries it accepts, and some high-risk categories are restricted or not accepted. Ask early whether Klarna is available for your business type.
Which countries is Klarna available in?
Klarna is available in many European countries and some markets outside Europe, but not every payment option is available everywhere. Check Klarna’s current list for the countries you sell in.
Next step
Klarna works best as part of a checkout that also covers cards and the local methods of your main markets. Fasto works with adult, subscription, nutraceutical, gaming, dating and hospitality merchants. Approval typically takes two to three weeks.
Get a free quote and tell us which markets you sell to.
