Klarna is available as a payment option in the Point of Sale and on the Ecommerce platform. This means your customers can use Klarna as a payment option both in-store and online.

Klarna is a payment services provider offering your customers the ability to ‘buy now, pay later’ or to divide their payment into installments.  

As the retailer, you receive payment from Klarna and they handle the repayments with your customer directly. Klarna charge retailers fees to use their services.

Further information can be found here:  https://www.klarna.com/uk/business

Topics covered in this article are:

• Getting Started
• Using Klarna in-store
• Using Klarna on the Ecommerce platform
• Additional checks for Klarna Click & Collect Orders
• Returning a Klarna transaction
• Exchanging items paid for using Klarna
• Viewing your Klarna Order History

Getting Started

The first step to integrating Klarna as a payment option is to speak with the Citrus-Lime Success Team, who will introduce you to Klarna to set up your integrated account. During that process, you will agree your fees with Klarna and the payment options which you will offer to your customers.

There is no setup fee charged by Citrus-Lime, but we do charge a fee per Klarna transaction processed through Cloud POS.

To get started, please contact your Success Team.

Using Klarna in-store

To be able to tender a transaction using Klarna as the payment method, you must set a customer on the transaction. The customer's account details must include their full address, an email address, and a phone number as a minimum. It is important that these details are correct, as they are checked by Klarna and will dictate whether the transaction is successful or not.

Add the item(s) to the transaction as normal and then proceed to Tender.

On the Tender Transaction screen, click on the Klarna tender type:

A window will then appear, asking you if the customer would like to receive their payment link by email or by SMS. Enter your customer's preference for communication (either their email or mobile/cell number) and click Send:

Klarna will now contact your customer. The message will contain a link to a secure page on Klarna's website, where your customer selects their payment option. Here is an example:

Once your customer has clicked Buy, they will see the following on the Klarna webpage:

This automatically notifies Cloud POS, and you'll see confirmation on your Point of Sale screen.

(If the customer's application is declined, they will be notified of this on the Klarna webpage. You will also be notified in the Point of Sale.) 

Click Continue in the Klarna window to proceed with the transaction. You'll then see the receipt options:

Make your selections, then click Complete Transaction. This will finalise the transaction.

Klarna will assign a reference to the transaction, which will appear on both the 40-Col and Full Size Receipt:

Using Klarna on the Ecommerce platform

When your customer adds an item to their basket and proceeds to the shopping cart page, they'll see the option to use Klarna as a payment method, but only if Klarna are willing to fund the transaction. This is dictated by the commercial arrangements you have made with Klarna when setting up your account. For example, you may have set a minimum purchase amount for a Klarna transaction.

After selecting Klarna as the payment option, your customer will then proceed through the checkout in the regular manner, by either creating a new account or logging in using their existing details, inputting their delivery address and selecting a shipping option.

Your customer will then see the Klarna payment options that are available. Again, the options here will depend on your account setup with Klarna:

If the customer selects ‘Klarna Pay Over Time’, they will need to enter valid payment card details, so that Klarna can take the monthly payments:

Once your customer has made their payment selection and clicked to complete the order, they will see an application reference on the order confirmation page:

The customer's order will then download to Cloud POS in the same manner as any other Web Order.

To process the order for despatch or collection, first recall the order into the Point of Sale.

When you pick up the items on the order and proceed to Tender, you'll see the Klarna tender type is already populated with the value of the transaction.  You can also click the View Security Info button to examine the order information in more detail:

If you are processing a Click & Collect order, please refer to the section below regarding additional checks.

Once you are happy to proceed, click Continue with Transaction followed by Complete Transaction to finish.

When you tender the transaction, this also captures the order with Klarna. You can check the status of your Klarna orders in the Cloud POS Back Office, if needed, by navigating to Customers, Receipts & Orders > Klarna Order History. Please refer to the section below for more help with this page.

Additional checks for Klarna Click & Collect Orders

There are rules you are required to follow with regards to proof of identity of the collecting customer when they have paid online using Klarna.

1. Goods shall only be handed out to the Customer or to a person authorised by the Customer.
2. Merchants shall verify the ID (passport, a photo driving license, a debit/credit card, or a recent utility bill) of both the Customer and the person to which the goods are handed out.
3. Merchants shall produce a proof of delivery document that shows date and time of the hand out, the goods handed out, prices, printed name of the Customer and, as the case might be, printed name and telephone number of an authorised person and signature of the person to which the goods are handed out. 

Source: https://cdn.klarna.com/1.0/shared/content/policy/fraud/en_gb/uk.pdf

Regarding point 3, you would be able to use the Full Size Receipt in your Receipt Journal as your proof of delivery document. 

Returning a Klarna transaction

Returning a transaction that was paid for using Klarna is very similar to refunding a transaction paid by another tender type.  

When you return the transaction, select the items being returned, set the Reason Code(s) and click the Tender button. 

You'll see the Klarna tender type is already populated with the value of the order. 

Click Continue with Transaction to proceed and, from the next screen, make your selections regarding printing a receipt and sending an e-receipt, then click Complete Transaction to finalise the return.

This process will automatically notify Klarna, who will refund your customer accordingly.

You will also be able to see the refund confirmed in the Cloud POS Back Office, by navigating to Customers, Receipts & Orders > Klarna Order History. Please refer to the section below for more help with this page.

Exchanging items paid for using Klarna

This is not permitted by Klarna.

Klarna does not permit items to be exchanged, as the agreement between Klarna and the customer is for the specific items that were purchased in the original transaction. If the customer wishes to exchange an item from their original purchase, this must be refunded (as described earlier in this article) and a new transaction created for the item they wish to take in place of the original item. This in effect forms a new agreement between Klarna and the customer.

When you return a Klarna transaction, you will not see the button to ‘Process an Exchange’, for this reason.

Viewing your Klarna Order History

In the Cloud POS Back Office, navigate to Customers, Receipts & Orders > Klarna Order History:

This page shows both in-store and online Klarna transactions. It also shows refunds that have been processed for Klarna transactions.

By default, the page shows orders that have failed to Capture with Klarna. If you wish to view successfully Captured orders in the grid, check the box provided to load all Klarna orders:

If an order has failed to capture with Klarna, you can retry the capture from this screen. To do so, click the Retry Capture button:

Frequently Asked Questions