Thank you for choosing to shop with Klarna. These terms and conditions, together with the attached template agreement (when populated with your individual details), comprise a credit agreement between you and us (the “Credit Agreement”). When we use ‘us’, ‘we’ or ‘our’ in this document, we mean Klarna Bank AB (publ). When we use ‘you’ in this document, we mean anyone who has bought something using Pay in 3 instalments with Klarna.
1. Who can use Pay in 3?
You must be an Irish resident, over 18 years old and have a valid payment card to use Pay in 3. When we say ‘valid payment card’, we mean the card must be in your name, and must not have expired. You should also make sure the card you use has enough money available to cover all the instalments.
Pay in 3 is a credit product. It’s our decision whether or not we start a credit agreement with you.
2. How do I Pay in 3 instalments?
With Pay in 3, you can pay for something you buy by dividing the cost into three equal instalments. At checkout, you’ll see an option to ‘Pay Later in 3 instalments’. When you choose this option, just enter your card details to complete your purchase.
There are no interest charges with Pay later in 3 instalments, and no fees when you follow your automatic payment schedule. If you are delayed in making a payment, we may charge late fees. Any missed instalments, including any added late fees, will be rolled over to the next scheduled due date.The issuer of your card or your bank may charge interest or fees under your agreement with them. If you have any questions about those charges, contact your card issuer
3. Are there any alternative options for paying off my balance?
Yes, you are able to make payment early through the Klarna App by paying by card immediately. If a payment is made earlier, and the balance cleared we will not continue charging your card.
4. Do you need a due date extension?
By extending the due date, you postpone the payment date of your order for 10 days, see Extend your Due Date for a Fee Terms. You cannot extend the Due Date for orders that are 500 EUR or more.
5. Which cards does Klarna accept?
Klarna accepts most cards except prepaid cards. We may also not accept a card that’s due to expire in the near future. We’ll let you know at checkout if your card hasn’t been accepted.
6. When will Klarna take my payments?
At the point of purchase we’ll freeze the first of your three instalments on your card. This means you won’t be able to spend this money on anything else. Once we’ve received confirmation that your items have been shipped, the first of your three payments will be taken from your card automatically using the frozen amount. You’ll be able to see this on your card statement. If your items are not shipped, we’ll unfreeze your money and you’ll be able to spend it again. This may take a few days depending on which bank you’re with.
The second payment will be taken 30 days after the first payment, and the last one 60 days after the first payment.
The dates these payments are due will be sent to you by email, and you’ll be able to check them in our app.
Sometimes the shop (online merchant) doesn’t charge you for your whole order all at once. They might do this if they ship your items at different times. If this happens, we’ll make a new Pay in 3 plan for each part order they make. Each of these order parts will have its own due date, depending on when the shop confirms that part of your order. If you extend the due date for your payments at any stage in the process, additional fees may be payable.
WARNING: if you do not make your repayments we may engage a debt collection agency to collect money owed from you. Not meeting repayments may also affect your ability to use Klarna in the future.
7. What happens if my card is cancelled, or my card details change?
If your card is cancelled, you’ll still have to pay us any money you owe as soon as we ask you to.
If your card details change between your purchase and your final payment, you can update them in the Klarna App.
8. What happens if I cancel my order?
Your cancellation is subject to the store’s cancellation policy, so you need to check the store’s website for information on their cancellation policy and instructions on how to cancel an order and return the good(s) if already received.
If your next payment or due date for the cancelled order is approaching, you can pause billing by choosing that order in the Klarna App and click “Report a problem”.
Once the store has confirmed the cancellation or return, Klarna will update your payments accordingly as well as refund any amounts due. Refund processing times to you may vary and can take up to 14 days depending on the consumer’s bank.
If you cancel your order, we’ll cancel any outstanding payments and pay back any amounts we’ve already taken from your card. We’ll do our best to pay you back as soon as we can.
If you want to return part of your order, we’ll take the amount from your outstanding balance. It won’t count as a payment, so you’ll need to continue making your payments on the dates they’re due until your balance is paid in full.
9. How and when will I receive my refund?
Refunds for Pay in 3 are processed in different ways. It depends on the status of your payment schedule, how much you’ve paid and if the merchant has processed a full or partial refund.
If you’re due a full refund, we’ll cancel any remaining payments and refund anything you’ve already paid to the card you used to make the payment.
If you’re due a partial refund that’s more than the remaining balance on your order, we’ll deduct the amount from the outstanding balance first. We’ll then refund the difference to the card you used to pay off the purchase.
If the partial refund is less than the remaining balance on your order, we’ll deduct the amount from the outstanding balance. We’ll then spread the remaining balance evenly over the remaining payments.
10. Can I cancel this Agreement if I change my mind?
You have the right to withdraw from this credit agreement without charge at any time. If you wish to withdraw from the credit agreement, you will need to repay the balance owed by card through the Klarna App.
If you wish to exercise your right of cancellation with the merchant (shop), please see section 8 above.
11. What happens if you can’t take an instalment because I don’t have enough money on my card?
If we can’t take the first instalment from your card, we’ll let you know, and try again. If that’s unsuccessful, we’ll roll the missed payment over to the second instalment. If also the second installment is unsuccessful, we’ll give you a few days to update your card details or make sure there’s enough money on your card. If we can’t take the payment after additional attempts, we’ll roll over the payment to the next and final instalment. If we still can’t take the payment, we’ll try to charge your card again, ask you to pay the outstanding amount directly and/or use a debt collection agency to collect the money for us.
We will contact you if we roll over a payment to the next due date and after the last instalment when all your payments have failed.
Not paying your instalments on time might also mean you can’t use Klarna in the future
12. What happens if I’m late with my payment?
If we are unable to charge your selected payment method for the amount due on your due date we will send you a notification and provide you a courtesy two to seven business day slack 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 may attempt to collect the late payment immediately. Otherwise, we will attempt to charge your original card again after the two to seven-day period. It is important that you ensure enough funds are available to complete your payment on the due dates. If we are not able to take the second instalment during the slack period, we will roll over the unpaid amount to the next and final instalment, including a late fee for the missed payment.
If you fail to make a payment by the end of the courtesy slack period you will be in default, and in addition to other rights we have, we may charge you a late fee amounting to the following; i) three (3) EUR per instalment if the total order value is below 100 EUR, ii) five (5) EUR per instalment if the total order value is between 100-200 EUR, iii) eight (8) EUR per instalment if the total order value is between 200-499.99 EUR, or the maximum amount permitted by applicable law if lower. Late fees do not apply for orders that are 500 EUR or more.
If you fail to make your payments, you may be unable to use the service in the future. We may continue to attempt to collect overdue and currently due payments on subsequent due dates. If we are unable to take the outstanding amount on the third instalment, we may invoice you the remaining amount for immediate payment or follow our debt collection procedures where you will have to pay all reasonable costs incurred by Klarna and/or the debt collection agency.
13. Will using Klarna affect my credit score?
No. We might carry out a limited credit search on you at a credit reference agency. This is a ‘soft credit check’, and won’t affect your credit score, or your chances of using credit in the future. You’ll be able to see it on your credit file, but no one else will.
Warning: If you do not meet the repayments on your credit agreement, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.
14. How does Klarna store my card details and my personal data?
We store your card details on our systems when you shop with us. We’ll use these details to approve future payments. Unless you opt out, we may also use this information to fill out your card details for your convenience when you buy things in the future.
You can manage your cards online. If Klarna gets updated card details from your bank, we might also store this information on our system.
We use your personal data to identify you and to carry out customer analysis, credit assessments, marketing and business development. We might also share your data with some partners (such as credit reference bureaus), which might be based outside of Ireland.
Please see our Privacy Notice here for more information about your rights, how you can get in touch with us, or to complain. By using Klarna’s services you confirm that you’ve read this notice.
15. How do I make a complaint?
For complaints, the information provided on klarna.com/ie/ applies. By using our Service you consent and agree that Klarna provides all communication regarding complaints electronically. If you have a complaint towards Klarna, you can submit your complaint through Klarna’s Customer Service webpage or using the chat function in the Klarna App.
If we are unable to resolve your complaint, you may refer your complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is independent and free service to complainants and there is no cost for bringing a complaint to the FSPO. Klarna will participate in such proceedings and is obliged to do so under applicable law. More information can be found on FSPO website: www.fspo.ie. You can also submit your complaint in any official language of the European Union through the ODR-platform provided by the European Commission: https://ec.europa.eu/consumers/odr/. The complaint will then be forwarded to FSPO. You may also contact the FSPO by postal mail or personally: The Financial Services and Pension Ombudsman, Lincoln House, Lincoln Place, Dublin, Phone: +353 1 567 7000, email: email@example.com.
You can contact Klarna’s Customer Service through the webpage or by using the chat function in the Klarna App.
16. Transfer of rights
This is a credit agreement between you and us. You can’t transfer your rights or obligations to anyone else unless you get our permission first.
We can transfer these terms, or any rights and obligations you have under them, at any time. We don’t need to ask for your consent to do this, unless transferring would harm your rights and responsibilities. This means we have the right to transfer the credit agreement to another provider without asking you.
Klarna Bank AB (publ), Sveavägen 46, 111 34 Stockholm, telephone: +46 8 120 120 00, fax: +46 8 120 120 99. (VAT number SE556737043101), is a Swedish bank registered at the Swedish companies register under registration number 556737-0431. The Managing Director is Sebastian Siemiatkowski. Klarna Bank AB (publ) is authorised to provide financial services by Finansinspektionen (the Swedish Financial Supervisory Authority). Klarna’s registration with the Swedish financial supervisory authority as well as a list of countries to which Klarna’s services have been passported to can be found on Finansinspektionen’s website.
18. Governing Law
This agreement is governed by the laws of Ireland. Any disputes arising from or in connection with this Agreement shall be subject to the courts of Ireland.
We will usually communicate with you in English.
Please note that other taxes or costs may exist that are neither paid by nor imposed by Klarna.
For further information about Klarna, go to: klarna.com/ie/