This service makes it possible for you to enable Klarna's most popular payment options as well as the payment page managed by Klarna in your online store.

The payment processing functionalities of Klarna Payments have been redesigned.

Payment processing now works in the same way as in Klarna Checkout. All the same payment processing functions are available in the store's admin panel, and changes made to payment amounts in the Klarna portal are transferred to the store's admin panel.

You can use the payment service to enable the following features in your online store:

  • Klarna's payment options:
  • Activating payments in your online store's admin panel
  • Extending payment expiry dates in the online store's admin panel
  • Returning payments in your online store's admin panel
  • Secure and easy-to-use checkout page managed by Klarna
  • Paying with the Swedish krona (payments can be made in krona, unlike in all other payment services)

MyCashflow also offers a comprehensive checkout solution Klarna Checkout, which completely replaces the default checkout.

See also Klarna's help center.

Paying with Klarna Payments services

When a customer selects a payment method that uses Klarna Payment and confirms the order, the Klarna's payment page will open.

On the payment page, the customer can select the desired Klarna payment option and finalize the order. Afterwards the customer will be redirected back to your online store.

After the customer has made a payment, you must activate it in your online store's admin panel during order processing so that the payment can be settled to your online store's bank account. See instructions for activation.

Pricing

Using the service is subject to fees. For detailed information on how different payment options are priced, see Klarna's website:

Installation and setup

If you are not yet a Klarna user, start by subscribing on admin panel page Settings > Payment methods. The order form is below the payment form.

Once you have received your Klarna credentials, you can create a new payment method for your online shop using Klarna Payments:

  1. Create a new payment method on the admin panel's Settings > Payment methods page.

    See the instructions on how to create payment methods.

  2. Select Klarna Payments as the payment service.
  3. Please enter your Klarna credentials in the fields Merchant number and Secret key.
  4. Click Continue.
  5. Define the payment method's settings.

    See the description of the settings in the payment method form.

  6. Click Save.
  7. Test the payment method.

    To make sure that the payment method is displayed at checkout and works the way you intended, place test orders with different shipping methods and in different versions.

    Learn more about testing payment methods.

  8. Publish the payment method to make it accessible to everyone.

    The new payment method is hidden by default (meaning it won't be visible to the online store customers and will appear grayed out in the Payment methods list in the admin tool). To publish the payment method, open the payment method form and scroll the screen until you reach the Payment method visibility section. In the Show in version section select the store versions where you want the payment method to be available.

Klarna's Merchant Portal

Information about all orders that use the Klarna Payments service is transferred to Klarna's Merchant Portal, which you can access at https://eu.portal.klarna.com

The Merchant Portal is where you can, among others:

  • edit the design of the Klarna Payments checkout page
  • edit the online store information that is displayed to the customer
  • download payment reports

If you edit payments in the Merchant Portal, you must check payment statuses in your online store's admin panel so that they match both in Klarna and MyCashflow.

Activating payments

In order for a payment to be transferred to your bank account with Klarna's payment settlement, it must be activated.

Payments must be activated before they expire.

Klarna payments expire after some time. You can check a payment's expiry date in the Payment transactions section on the order page or in Klarna's Merchant Portal, in the order's details on the Orders page.

If the payment expires, you won't be able to process the order by using Klarna. In such a case, create a new payment transaction for the order with a different payment method.

When necessary, you can also extend the order expiry date.

After you've opened the desired order on the admin panel's Orders page, you have the following options for activating the payment:

  • Mark order products as shipped.

    After you've marked products as shipped, the payment will be activated automatically, and its status will be changed to Paid.

    If the customer selects Pay later or Slice it as the payment method at checkout, Klarna sends payment instructions to the customer and the payment term starts only when the payment is activated.

  • Ship the order in partial shipments.

    After you've marked the selected order products as shipped, only the sum corresponding to the shipped products and the shipping costs for the entire order will be activated, and the payment's status will be changed to Partially activated.

  • Activate the payment manually by clicking the Activate payment link in the payment transaction's tool menu:

If the order has been paid for in a currency other than the euro, the exchange rate information will be added to order events.

Extending the order expiry date

If you cannot activate a payment within the default time, you can extend the order expiry date either

  • in Klarna's Merchant Portal, via payment details on the Orders page or
  • via the order's Payment transactions menu in the admin panel.

Canceling reservations

If a customer has made an unnecessary payment, you can cancel it in your online store's admin panel even before activation.

To cancel the customer's reservation, go to the right-hand Payment transactions pane on the order page, and select Cancel reservation in the tool menu.

After you have canceled the customer's reservation, the payment status will change to Cancelled. In such a case, the customer won't be charged at all.

Checking the status of payments that have not been approved.

If a payment has expired or an order is cancelled, the status of the payment is automatically changed into Cancelled. In certain cases it may be possible to change the status of the payment in Klarna's Merchant Portal.

To verify that the payment status is up to date on the order page of the admin panel, follow the Check payment status link on the payment transaction menu:

The verification takes place in real time and the payment status is updated immediately.

Resending payment instructions

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Editing order products

You can edit the product contents of orders paid for with Klarna Checkout to some extent, depending on the customer's country and selected payment method:
  • Orders paid for with Klarna's payment methods are subject to certain restrictions, which are discussed below.
  • The contents of orders paid for with services external to Klarna can be modified freely.

You can see the payment methods used by the customer in the payment's Payment transactions menu on the order page.

The following changes to the order are possible depending on the customer's country and the selected payment method before activating payments

  • modifying product prices, quantities and tax rates
  • adding and editing products
  • modifying delivery and payment costs
  • modifying the order discounts.

In some situations, Klarna will reject changes if they increase the total order amount.

Klarna reviews the changes and approves or rejects them based on the customer's credit data. The review is done instantly and Klarna's system will inform you about its approval/rejection as soon as you've edited the order's products. Once approved, the amount to be paid with Klarna and order details in Klarna's portal will be updated automatically.

After activating the payment, you can edit order products freely (in terms of prices, quantities and VAT rates). Activating payments is possible only if the amounts match in the admin panel and Klarna's portal.

If you add new products to the order, you must create a new payment transaction by using a service other than Klarna to accommodate the new order total. When products are removed from the order or returned by the customer, you can refund payments made with Klarna to the customer directly via the order page.

Editing payments in Klarna's Merchant Portal

You can also edit payment sums in Klarna's portal, and the changes will be automatically updated to your online store's admin panel.

Only the payment amount can be modified in Klarna. Changes made to individual product lines in the Klarna portal will not be updated to the store.

Refunds

You can refund payments made with Klarna Payments to the customer directly via the admin panel's order page.

All Klarna refunds are automatically made using the same payment method that the customer paid with.

Making a full refund

If a customer returns the whole order, but you'd like to e.g. charge the customer a return fee, don't use the option to refund the whole payment.

See how to make a partial refund.

Here's how to refund the whole payment to the customer:

  1. Find the order and open its details from the list on the admin panel page Orders.
  2. Locate the payment you'd like to refund in the Payment transactions pane on the order page.
  3. In the payment transaction's tool menu, click the Refund whole payment link.

Klarna will then refund the payment to the customer in full with the original payment method.

Making a partial refund

If the customer returns only some of the order products, you can refund the relevant sum paid with Klarna Payments directly via the admin panel's order page:

  1. Find the order and open its details from the list on the admin panel page Orders.
  2. First, process product returns, as normal.

    After you've made all the changes related to the return, the order total will be different, and the system will prompt you to create a new payment transaction to fix this.

  3. In the payment notification, click the Make a partial refund link.

    When necessary, you can also make a refund with another payment service by clicking the Create new payment transaction link.

    Learn more about making refunds.

  4. Review the sum generated by the system in the payment refund window.

    If you'd like to charge the customer a refund fee, deduct it from the amount to be refunded.

  5. Finally, save the refund.

Klarna will then refund the amount you specified to the customer with the original payment method.