Klarna

Buy Now Pay Later

Klarna is a payment provider that lets merchants offer buy now, pay later and flexible payment options at checkout.

Struggling with your approval ratio for this payment provider?

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Published: January 21, 2026
Last updated: May 5, 2026

2 min

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Klarna Company Overview

Foundation

2005

Company Type

private

Employees

10,000+

Location

SWE

Channel

OnlineIn person

For developers

Status page Stack Overflow

Features

BNPL payment options at checkout

Offer pay-later and installment-style options through Klarna. Common for ecommerce and digital checkout flows.

Market coverage and shopper eligibility

Support depends on the shopper’s region and Klarna eligibility checks. Display available options dynamically based on market.

Authorization outcomes and approval rates

Transaction approval/decline outcomes can vary by market, basket size, and shopper profile. Monitor approval rate by country, device, and channel to spot drop-offs.

Security and risk controls

Klarna applies risk controls to help manage fraud exposure on eligible transactions. Keep order and customer data consistent to reduce avoidable declines.

Authentication and shopper experience

Checkout flows may include shopper verification steps depending on market and scenario. Align UX and messaging so shoppers can complete verification when prompted.

Disputes, returns, and refunds support

Processes for disputes and refunds depend on the Klarna product used and your integration. Maintain clear return policies and timely refund handling to reduce escalations.

Reporting and reconciliation

Use Klarna reporting/portal tools to track payments, refunds, and settlement information. Ensure order IDs and references map cleanly to your OMS/accounting.

Tip from SmartRetry To improve approval rates, review declines by market and basket size, and ensure customer name, address, and contact details are complete and consistent at checkout.

Currencies

Processing currenciesEUR, GBP, SEK, DKK, NOK, USD, AUD, NZD, CAD

Available in

Available countries

Global

FAQ

Klarna is a payment provider focused on BNPL and alternative payment options; you typically use it alongside (or via) your PSP/payment platform depending on your setup.

Declines can be driven by shopper eligibility, incomplete or inconsistent customer details, unusually high basket sizes, or market-specific rules. Track approval rate by country/channel and tighten checkout data quality and messaging.

Klarna is available in multiple regions, but merchant availability and supported products vary by market. Confirm coverage and requirements with Klarna for the countries you sell into.

Yes. Many merchants present Klarna as an additional payment method next to cards and wallets, typically configured through their checkout and payment platform.

Refund handling depends on the Klarna product and your integration. Merchants generally initiate refunds through their Klarna setup, and shoppers see updates based on the payment plan and status.

Statuses

Statuses — All
Code	Description	Level	Frequency	Resolution
Order Status
AUTHORIZED	Order Authorized The customer's payment has been authorized by Klarna. Funds are reserved and the merchant can proceed to capture (ship the order). Authorization is typically valid for 28 days.	Pending, Info	Common	T0
CAPTURED	Order Captured The order has been captured (shipped). Klarna has initiated payment to the merchant and has started billing the customer according to their chosen payment method.	Success	Common	T0
PART_CAPTURED	Partially Captured A partial capture has been made against the order. The remaining authorized amount can still be captured or released.	Pending, Info	Occasional	T0
CANCELLED	Order Cancelled The order authorization has been cancelled. No captures are possible. Cancellation is only allowed before any capture has been made.	Info	Occasional	T0
EXPIRED	Authorization Expired The authorization has expired without being captured. By default, Klarna authorizations expire after 28 days. The customer must place a new order.	Error, Info	Occasional	T0
CLOSED	Order Closed The order is fully settled (fully captured and all refunds processed) or has been closed by Klarna. No further actions can be taken.	Info	Occasional	T0
REFUNDED	Order Refunded The full captured amount has been refunded to the customer.	Info	Occasional	T0
PART_REFUNDED	Partially Refunded A partial refund has been issued against the captured amount. Further refunds are possible up to the remaining captured amount.	Info	Occasional	T0
ACCEPTED	Payment Accepted / Authorized The payment session was accepted and the payment has been authorized by Klarna's risk engine. Used as the raw acquirer response for successful authorizations.	Success	Common	T0
PENDING	Payment Pending The payment is pending further action by the customer or Klarna's risk review. Common in widget integrations while the customer is still completing the Klarna checkout flow.	Pending	Common	T0
REFUSED	Payment Refused Klarna's internal risk engine refused the payment. Common reasons include an outstanding unpaid balance with Klarna, risk scoring, or country/currency mismatch. Do not retry immediately.	Decline	Common	T2
ABANDONED	Session Abandoned The customer did not complete the payment flow using the redirect URL or widget. The session has been abandoned. A new session should be initiated.	Info	Occasional	T0
FAILED	Authorization Failed The authorization request failed due to either Klarna rejecting the transaction or a technical error. A new authorization request should be submitted.	Error, Decline	Occasional	T0
AUTH_REVERSED	Authorization Reversed The authorization was successfully reversed (voided). No capture is possible after this state.	Info	Occasional	T0
Dispute Status
DISPUTE_OPENED	Dispute Opened A dispute has been opened by the customer against this order. The merchant should respond with evidence within the specified deadline.	Info	Occasional	T1
DISPUTE_LOST	Dispute Lost The dispute has been resolved in favor of the customer. The merchant has lost the dispute and funds have been returned to the customer.	Info	Occasional	T1
DISPUTE_WON	Dispute Won The dispute has been resolved in favor of the merchant. Funds remain with the merchant.	Success, Info	Occasional	T1
Error Codes
UNAVAILABLE_PAYMENT_METHOD	Payment Method Unavailable Klarna's risk engine refused the payment because the selected payment method (e.g., Pay Later, Pay in 3) is unavailable for this customer or transaction. The shopper may have an unpaid balance.	Decline	Occasional	T2
PAYMENT_METHOD_FAILED	Payment Method Failed The purchase for the selected Klarna payment method failed. This is a risk-engine refusal, often indicating unpaid obligations with Klarna.	Decline	Occasional	T2
CAPTURE_NOT_ALLOWED	Capture Not Allowed The capture operation is not permitted. The order may be cancelled, expired, or the capture amount exceeds the remaining authorized amount. HTTP 403.	Error	Occasional	T0
CANCEL_NOT_ALLOWED	Cancel Not Allowed Cancellation is not possible because the order has already been captured. Once captured, a refund must be issued instead. HTTP 403.	Error	Occasional	T0
REFUND_NOT_ALLOWED	Refund Not Allowed The refund is not permitted. The order has no captures, has already been cancelled, or the refund amount exceeds the captured amount. HTTP 403.	Error	Occasional	T0
NOT_ALLOWED	Operation Not Allowed The requested operation (e.g., release authorization, update order, extend authorization) is not allowed in the current order state. HTTP 403.	Error	Occasional	T0
NO_SUCH_ORDER	Order Not Found The order ID provided does not correspond to any existing order for this merchant. Verify the order ID. HTTP 404.	Error	Occasional	T0
NO_SUCH_CAPTURE	Capture Not Found The capture ID provided cannot be found. Verify that the capture ID is correct. HTTP 404.	Error	Occasional	T0
NOT_FOUND	Resource Not Found The requested resource (refund, capture, or order) cannot be found. Check the provided IDs. HTTP 400 or 404.	Error	Occasional	T0
CONFLICT	Resource Conflict The request conflicts with the current state of the resource (e.g., concurrent operations on the same order). Implement retry with back-off. HTTP 409.	Error	Occasional	T0
UNPROCESSABLE_ENTITY	Unprocessable Entity The request is syntactically valid but semantically incorrect (e.g., field value out of allowed range). Review the OpenAPI documentation for field constraints. HTTP 422.	Error	Common	T0
INVALID_ADDRESS	Invalid Address The shipping or billing address provided is invalid. Validate and correct the address fields before retrying. HTTP 422.	Error	Occasional	T0
REQUEST_TOO_LARGE	Request Too Large The request payload exceeds the maximum allowed size. Reduce the request body and retry. HTTP 413.	Error	Rare	T0
TOO_MANY_REQUESTS	Rate Limit Exceeded The API rate limit has been exceeded. Implement exponential back-off and retry after the period indicated in the Retry-After header. HTTP 429.	Error	Occasional	T0
INTERNAL_SERVER_ERROR	Internal Server Error An unexpected server-side error occurred on Klarna's platform. Retry following Klarna's escalation and retry policy. HTTP 500.	Error	Occasional	T0
UNEXPECTED_ERROR	Unexpected Error An unexpected error occurred; equivalent to INTERNAL_SERVER_ERROR. Retry following Klarna's escalation and retry policy. HTTP 500.	Error	Occasional	T0
TEMPORARILY_UNAVAILABLE	Service Temporarily Unavailable Klarna's service is temporarily unavailable (gateway timeout or service outage). Retry with exponential back-off. HTTP 502/503/504.	Error	Occasional	T0
BAD_VALUE	Bad Field Value A field in the request contains an invalid value (e.g., BAD_VALUE: locale, BAD_VALUE: purchase_currency, BAD_VALUE: order_lines[X].tax_rate). Correct the indicated field and resubmit.	Error	Common	T0
BAD_VALUE:locale	Invalid Locale The locale in the payment request is not supported or is incompatible with the purchase country. Use a valid locale/country combination.	Error	Occasional	T0
BAD_VALUE:purchase_currency	Invalid Purchase Currency The currency code is not correctly formatted or does not apply for the specified locale. Verify the currency/locale/country combination.	Error	Occasional	T0
BAD_VALUE:order_lines_tax	Invalid Tax Amount in Order Lines The tax rate or total tax amount for one or more order lines is invalid. Tax amounts must sum correctly across all order lines per Klarna's calculation rules.	Error	Occasional	T0
BAD_VALUE:billing_address	Invalid Billing/Shipping Address Field A billing or shipping address field (postal code, phone, name) is invalid or not formatted correctly. Ensure UTF-8 encoding and correct format per country.	Error	Occasional	T0
NOT_FOUND:session	Session Not Found / Expired The session ID is invalid or expired. The customer attempted to pay against an expired offer. Initiate a new session.	Error, Decline	Occasional	T0
PAYMENT_METHOD_NOT_AVAILABLE	Payment Method Not Available The Klarna payment method is not configured or enabled for this merchant. Verify Klarna is enabled in the payment provider dashboard.	Error, Decline	Occasional	T1
MISSING_RETURN_URL	Missing Return URL The returnUrl parameter is missing from the payment request. Include a valid returnUrl before retrying.	Error	Occasional	T0
NO_INVOICE_LINES	No Invoice Lines Provided The payment request did not include invoice/order lines. Klarna requires detailed line items for all payment requests.	Error	Occasional	T0
ALLOWED_CATEGORY_EMPTY	Allowed Category List Empty The payment request does not comply with Klarna's category guidelines (e.g., country code and billing address mismatch). Review request configuration.	Error	Rare	T0
INVALID_AUTH_TOKEN	Invalid or Expired Authorization Token The authorization token from Klarna is invalid or has expired (tokens expire after 60 minutes). Restart the checkout flow to obtain a new token.	Error	Occasional	T0