Klarna Terms and Conditions

Pay in 3 Instalments – Terms & Conditions

Thank you for shopping with Klarna.

This agreement outlines the terms between you and Klarna Bank AB UK Branch. Whenever we refer to "us," "we," or "our," we are referring to Klarna Bank AB UK Branch. "You" refers to anyone who has made a purchase using the Pay in 3 instalments option with Klarna.

1. Who can use Pay in 3?

To use Pay in 3, you must be a UK resident, at least 18 years old, and have a valid payment card. A "valid payment card" means the card must be in your name and not expired. Ensure that the card has enough available funds to cover all instalments.

Pay in 3 is a credit product, and it’s at Klarna’s discretion whether or not to approve the credit agreement.

2. How do I Pay in 3 Instalments?

With Pay in 3, you can split the cost of your purchase into three equal instalments. At checkout, select the option to ‘Pay Later in 3 interest-free instalments.’ Simply enter your card details to complete your purchase.

There are no interest, fees, or charges for paying with a debit or credit card through Klarna. However, your bank may charge interest or fees if you use an interest-bearing credit card.

3. Are there alternative ways to pay off my balance?

Yes, you can make an early payment via the Klarna App using your card immediately, or you can request our bank account details from customer services for a direct bank transfer. If you pay early and clear the balance, we will stop charging your card.

4. Which cards does Klarna accept?

Klarna accepts most cards, but we do not accept prepaid cards or cards that will soon expire. You will be notified at checkout if your card is not accepted.

5. When will Klarna take my payments?

At the time of purchase, we’ll place a hold on the first instalment on your card. This amount will be frozen and unavailable for other purchases. Once we confirm shipment of your items, the first payment will be processed automatically. If the items are not shipped, we’ll unfreeze the funds, and you can use them again, which may take a few days depending on your bank.

The second payment will be due 30 days after the first, and the final payment will be 60 days after the first. Payments will be taken automatically, so you won’t need to manually pay or worry about missing a payment.

6. What happens if my card is cancelled or I change my card details?

If your card is cancelled, you must still pay the outstanding balance as soon as we request it. If your card details change, you must update them with us. You can do this online, and if needed, we may ask your bank for the updated details.

7. What happens if I cancel my order?

Your order cancellation is subject to the store’s cancellation policy. You should check the store’s website for cancellation instructions.

If your next payment due date is approaching, you can pause billing via the Klarna App by selecting the order and choosing “Report a problem.”

Once the store confirms cancellation or return, Klarna will update your payment plan and refund any amounts due. Refunds may take up to 14 days depending on your bank.

8. How and when will I receive my refund?

Refunds depend on your payment schedule and the merchant's processing time.

• Full refund: We’ll cancel all future payments and refund any amounts paid to your card.
• Partial refund: If the refund exceeds your outstanding balance, we’ll apply it to the balance and refund the difference to your card. If the refund is less than the outstanding balance, we’ll reduce the balance and spread the remaining amount over the remaining payments.

9. What happens if Klarna can’t take a payment because I don’t have enough funds on my card?

If we can’t take the first instalment, we’ll notify you and make two additional attempts. You’ll have time to add funds to your card.

If we’re still unable to take the payment, we’ll move the missed instalment to the second payment. If the second attempt also fails, we’ll give you a few days to update your card or ensure sufficient funds.

After two more failed attempts, the payment will be moved to the third instalment. If we still cannot take the payment, we may ask you to pay directly or engage a debt collection agency.

10. Will using Klarna affect my credit score?

No, we may perform a soft credit check, which will not affect your credit score or your future ability to use credit.

11. How does Klarna store my card details and personal data?

We store your card details securely to process future payments. We may also use your details for convenience when you shop with us again.

Your personal data is used for customer identification, credit assessments, marketing, and business development. We may share your data with partners (like credit reference agencies) outside the UK.

12. How do I make a complaint?

You can contact us via live chat on our customer service page or by calling (+44) 0808 189 3333. If you’re not satisfied with our response, you can escalate the issue using the Complaints Adjudicator.

13. Transfer of rights

This is a credit agreement between you and Klarna. You can’t transfer your rights or obligations without our permission.

We have the right to transfer the terms or any rights and obligations under this agreement to another provider without seeking your consent, unless it harms your rights.

14. Klarna

Klarna Bank AB UK Branch is authorised and regulated by the Financial Conduct Authority and the Swedish Financial Services Authority. Klarna’s registered office is in London at 125 Kingsway, Holborn, WC2B 6NH, United Kingdom.

For more information, visit Klarna's website.