Klarna Payments

Klarna Pay Later in 4 Installments Terms


How it works

  • Use your own valid debit or credit card to pay (no prepaid cards).

  • The first payment is charged when the merchant confirms your order (usually the shipping date), the next 3 payments are automatically charged every 2 weeks after that.

  • There are no interest charges with Pay later in 4 installments, and no fees when you follow your automatic payment schedule.

  • If you return your goods we will automatically reduce the amount you owe us. If you already paid us for a refunded order, we will refund the balance back to your original payment method.

  • If you have questions about the quality or shipping of your order, please contact the merchant where you made the purchase.

  • The issuer of your card may charge interest or fees under your agreement with them. If you have any questions about those charges contact your card issuer.


Complete terms


The following Payment Option Terms apply between Klarna Inc. ("Klarna," we," or "us") and the user of this payment option ("you"). In addition to these Payment Option Terms, your use of the Klarna Services are governed by the Klarna User Terms, which include your agreement to:

If you do not agree to these terms, you must not use the Klarna Services. The Klarna User Terms combined with these Payment Option Terms are a contract between you and Klarna.


If you are offered to Pay later in 4 installments, you have the option to pay for your purchase with a credit or debit card in four substantially equal payments. You will make your payments directly to Klarna using your card. There is no cost to use this service, however the issuer of your card may  charge interest or other fees under the terms of your card agreement. 


Accepted Cards: We may limit the types of cards we accept at our discretion. If a type of card is not accepted you will be notified before the purchase is completed. Most valid credit and debit cards that are not scheduled to expire in the near future are accepted. We do not accept prepaid cards. If we accept a card we will authorize the card for 1/4 of the order total. This amount will not be charged until the merchant confirms the order. but your card issuer may restrict access to the authorized amount while pending.


Due Date: When using Pay later in 4 installments, your first payment will be charged once your order is confirmed by the merchant. This typically occurs when the Merchant ships the goods but could also happen at the time of order placement. 3 subsequent payments will be due every 14 days after the first payment is charged to your card. Future payments are automatically charged to your card on the due date. Scheduled Due Dates are disclosed in Eastern Time.

In the event the merchant does not charge for your entire order at the same time, we will create a different Pay later in 4 installments order for each merchant charge. Each of these order parts will have its own Due Date depending on when the merchant confirms that part of your order. This situation may be common where a merchant does not ship all the items from your order at the same time, and makes a new charge for each shipment.


Late Payment: If we are unable to charge your selected payment method for the amount due on your Due Date we will provide you a courtesy two-day Snooze period so that you can update your payment method or ensure enough funds are available on your selected card. If you update your card, we will attempt to collect the late payment immediately. Otherwise we will attempt to charge your original card again after the two-day period. It is important you ensure enough funds are available to complete your payment on the Due Date.


If you fail to make a payment by the end of the courtesy Snooze period you will be in default, and unable to use the service in the future. We may continue to attempt to collect overdue and currently due payments on subsequent Due Dates, or invoice you for separately for the unpaid total.


Returned Payment Fee: If you attempt to pay for a Pay later in 4 installments purchase via check or Automated Clearing House and your payment is returned unpaid when we present to your bank or financial institution for “not sufficient funds” or for other reasons such as a closed account, we will charge you a Returned Payment Fee of up to $27. However, the Returned Payment Fee will not exceed the total amount you owe.


Returns: Any returns or refunds credited to your purchase will reduce your outstanding balance, but do not count as payments. You will need to continue to make your previously disclosed payments at scheduled Due Dates until your balance is paid in full. If you have a credit balance you authorize us to credit the balance back to (a) your card, or any other card we have on file for you; (b) by check to your mailing address on file; or (c) by direct deposit any of your bank accounts on file or stated on any check you presented to us for payment.


Default: You will be in default if you: (a) fail to make any payment by Due Date after any applicable Snooze period(s); (b) become the subject of insolvency or bankruptcy proceedings; (c) supply false, misleading, or incorrect information to us; (d) a payment is returned to us by your bank; or (e) violate or are unwilling to comply with any provision in the Terms.


If you are in default Klarna may: (a) charge the outstanding balance on your Pay later in 4 installments purchase immediately, using any card we have on file for you or by a separate invoice; (b) employ a debt collection agency to receive payment and you will have to pay all reasonable costs (including attorney’s fees) incurred by Klarna and/or the debt collection agency; and (c) report default information to credit bureaus.


Credit Report Access and Reporting: By agreeing to these Payment Option Terms, you authorize Klarna to obtain consumer reports about you from consumer reporting agencies. You agree that we may obtain additional consumer reports about you as we reasonably deem necessary for the maintenance and collection of your balance. We will only obtain consumer reports that do not impact your credit score and do not leave a hard inquiry on your credit report. 


We may report information about your order to credit bureaus. Late payments, missed payments, or other defaults on your purchase may be reflected in your credit report.


Storing Card Details: You authorize Klarna to store your card details in our systems. We will use this information to authorize future charges under these Terms. Unless you opt out, we may also use this information to conveniently prefill your card details for future purchases. You may manage your cards and details online. In the event Klarna obtains updated card information from the card issuer, you agree that we may update use this updated information in our system.


Debit Card Transactions: If you use a debit card, you authorize Klarna to initiate preauthorized transfers from the related account. The amount of each transfer is disclosed during the creation of your order. You agree we may initiate transactions in the amounts listed, or less, in the event that part of your order is returned or not fully captured. Your final payment schedule will be emailed to you, and available through the Klarna App, once the merchant confirms your order. If you would like to cancel preauthorized transfers from your account you may change your payment card or contact your financial institution. You agree these terms will serve as your copy of your authorization for Klarna to initiate preauthorized transfers. We will provide notice within 2 days after each payment confirming that you have paid the amount listed in your payment schedule (or less, in the event part of the order is returned or not fully captured).



Klarna Inc. PO Box 8116, Columbus, OH 43201. Klarna Customer Service.



For complaints, the information provided on www.klarna.com applies. If you have a complaint towards Klarna, you can submit your complaint through the contact form on Klarna’s website (klarna.com) or via postal mail with the keyword "Complaint” to Klarna’s address.

Last updated 3 September 2019.