A recent shift in Klarna's protocol since July, confirmed by a company representative, has led to significant discrepancies in the payment process. When customers choose the unbranded Klarna option (marked with a generic credit card icon), the company executes Authorization Holds for each payment attempt, regardless of whether the merchant approves or denies the order.
Furthermore, Klarna immediately completes charges for these Authorization Holds, which makes it possible for customers to initiate a Chargeback against merchants, even in cases where goods are not delivered or still in transit.
These actions challenge the guidelines established by Forbrukertilsynet, Norway's Consumer Authority*. Klarna, operating on behalf of merchants, concludes the charge and settles customers' funds in their own accounts, even when an order isn't approved by the merchant nor can be controlled by the merchant.
This new policy could introduce several complications for merchants:
- Limited Sales Opportunities: Customers may need to wait for as long as five business days to receive a refund for funds reserved by Klarna, inhibiting further purchases.
- Compliance with Consumer Authority Guidelines: Merchants must fulfill specific conditions to be allowed to take advanced payments.
- Potential Complications with Card Issuers: A higher frequency of chargebacks could result in additional chargeback fees and increased card fees for merchants.
