How do businesses use Klarna?

Mar 02 - 2022


Klarna goes far beyond the responsibilities of dealing with ordinary payment gateways. In addition to authorizing (or denying) transactions, Klarna provides customers with the ability to choose between different payment plans. Merchants receive payment immediately after the sale. Klarna handles default risk and collects funds from clients.

What fees does Klarna charge merchants?

In general, Klarna's business model is to charge merchants and only minimally charge customers. Klarna offers three payment plan options and charges merchants different amounts.

The first option is paid in four interest-free installments.

This option sounds like. Instead of paying interest, customers pay it four times over an 8-week period. This equates to a Klarna payment gateway. Businesses should pay "variable costs" of up to 5.99%, plus a fixed cost of 30 cents per transaction.

Second Choice - Payment within 30 days.

Customers have a 30-day window during which they can return items for free. Customers will not be charged a pre-return charge after the 30-day window. Merchant's fee categories are the same as Four Interest-Free Installments: Variable Fees, up to 5.99%, plus a flat fee of 30 cents per transaction.

Third option - 6-36 month financing.

Customers are directed to Klarna's financial partner, WebBank, for longer-term, better-value loans. Businesses pay a "variable cost" of up to 3.29%, plus a fixed cost of 30 cents per transaction.

Which businesses can register with Klarna?

Businesses can register with Klarna on their business portal. Like other financial institutions, Klarna has a process of screening new business. Not all businesses and all transactions are eligible to use Klarna. Klarna doesn't list their requirements for merchants directly on their website, but they do publish some rules. Below is a quick summary of the types of merchants Klarna accepts.