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.

Klarna Payments payment processing functions are available in the admin panel. Also, changes made to payment amounts in the Klarna portal are transmitted to the admin panel.

Features of the Klarna Payments service:

  • 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
  • payment in euros or Swedish kronor.

Read more on Klarna's own website.

Klarna Payments options are also included in the Kustom Checkout solution, which completely replaces the default checkout of the online store.

Pricing

Klarna charges for the use of the service according to its own price list.

Limitations

Klarna's terms of use impose the following restrictions on using Klarna as a payment method in online shopping:

  • At the online store checkout, other online payment services cannot be offered alongside Klarna.

    However, Klarna's terms of use allow the use of alternative payment methods (e.g., MyCashflow Invoice) if Klarna is unavailable due to a disruption.

  • Klarna Payments cannot be used in connection with the following product categories and business areas:
    • Tobacco products
    • E-cigarettes
    • Weapons and ammunition
    • medications (over-the-counter and prescription)
    • Travel packages
    • Event and ticket sales
    • Marketplace ecommerce
    • Rentals (unless as main area of business)
    • drop-shipping

Paying with Klarna Payments services

When the customer has selected the Klarna Payments method and confirmed the order, the Klarna payment page opens.

On the payment page, the customer can select the desired Klarna payment option and finalize the order. After this, the customer returns to the online store.

Once the customer has made the payment, it must be activated in the admin panel during the order processing. See the instructions for activating Klarna payments. After activation, Klarna transfers the payment to the online store's bank account.

Installation and setup

If you are not yet a Klarna user, first order the service from the admin panel's Settings > Payment methods page. 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. Enter the API credentials you received from Klarna into the fields Merchant number (username) and Token (password).
  4. Press Continue.
  5. Define the payment method's settings.

    See a description of the payment method form settings.

  6. Press 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 down 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 using the Klarna Payments service is transmitted to the Klarna Merchant Portal, where you can, among other things

  • edit the design of the Klarna Payments checkout page
  • edit store information visible 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 Klarna to transfer the payment to the online store's bank account, the payment must be activated.

Payments must be activated before they expire.

Klarna payments expire after a certain period of time. The payment expiration date is shown on the order page's Payment transactionssection and on the Klarna Merchant Portal's Orders page.

If the payment is overdue, it is not possible to complete the order using Klarna . However, you can create a new payment transaction for the order using a different payment method.

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

Once you have opened the desired order from the admin panel's Orders page, you have the following options to activate the payment:

  • Mark the order products as delivered.

    Once you have marked the products as delivered, the payment will be activated automatically and its status will change to Paid.

    If the customer has selected Pay Later or Split Payments as the payment method at checkout, Klarna will send the customer payment instructions, and the payment period calculation will only begin from the moment of activation.

  • Ship the order in partial shipments.

    Once you have marked the selected order products as delivered, only the portion of the shipping costs for the delivered products and the entire order will be activated, and the payment status will change to Partially activated.

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

If the order is paid in a currency other than the euro, the transactions will also show the exchange rate.

Extending the order expiry date

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

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

Canceling reservations

If a customer has made an unwarranted payment, you can cancel it in the online store's admin panel even before activation by selecting the Cancel reservation option from the Payment transactions menu on the right side of the order page.

When you cancel a customer's reservation, the payment status changes 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 is overdue or the subscription is canceled, the payment will automatically move to Cancelled status. In certain cases, it may be possible to change the payment status in the Klarna merchant portal.

You can ensure that the payment status on the subscription page of the admin panel is up to date by clicking the Check payment status link in the transaction tool menu:

The payment status updates immediately.

Resending payment instructions

Voit lähettää aiemmin aktivoidun maksun ohjeet asiakkaalle uudelleen valitsemalla tilaussivun oikean reunan Payment transactions-valikosta Resend customer communications ‑toiminnon.

Editing order products

In orders paid with Kustom Checkout, it is possible to modify the product content depending on the customer's country and the payment method used for the order. Orders paid with Klarna payment methods are subject to certain restrictions, which are outlined below.

The payment method used by the customer appears in the Payment transactions drop-down menu on the right side of the order page.

Depending on the customer's country and the payment method used, the following changes to the order are possible beforethe activation of 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 rejects changes if they would increase the order total.

Klarna reviews the changes you make and approves or rejects them based on the customer's credit information. The inspection takes place immediately, and the Klarna system returns the result as soon as you have modified the order's product content. After approval, the amount to be paid and the order details in the Klarna merchant portal are updated automatically.

After activating the payment, you can freely edit the prices, quantities, and tax rates of order products. Activation of payments is only possible if the amounts match in the admin panel and in the Klarna merchant portal.

When you add products to the order, you must create a new transaction for the changed order amount using a service other than Klarna . When you remove or return products, you can refund Klarna payments directly from the order page.

Editing Payments in the Klarna Merchant Portal

You can also edit payment amounts in the Klarna merchant portal, and the changes will automatically update in your admin panel.

Only the payment amount can be modified in the Klarna merchant portal. Changes made to individual product lines in the merchant portal do not update in the online store.

Refunds

You can refund payments made with Klarna Payments to the customer directly from the order page in the admin panel. Refunds are always processed automatically using the same payment method the customer used for the transaction.

Making a full refund

If you want to charge the customer, for example, return fees, do not use a full refund, even if the customer returns the entire order.

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. Find the refundable amount on the right-hand side of the order page in the Payment transactions column.
  3. Press the Refund whole payment link in the transaction toolbar.

Klarna refunds the customer in full using the original payment method.

Making a partial refund

If a customer returns only part of the products they ordered, you can refund the necessary portion of the customer's payment directly from the order page in the admin panel.

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

    Once you have made the changes required for the return, the order total will change and a notification of overpayment will appear at the top of the order page.

  3. Click the Make a partial refund link in the payment notification.

    If necessary, you can also make a refund using another payment service by using the Create new payment transactionlink.

    Learn more about making refunds.

  4. Check the amount suggested by the system in the 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 returns the amount you specified to the customer using the original payment method.