How Klarna disputes work
Klarna disputes have two phases, the enquiry period and the open period.
An enquiry dispute begins when a customer challenges an order.
The dispute remains active until it is:
Withdrawn by the customer
Closed by Klarna
Escalated to a chargeback dispute
Refunded
During the enquiry phase, Klarna directs customers to contact the merchant directly to resolve the issue. You have 35 days to work with the shopper and prevent escalation.
If you do not receive any contact attempts from the shopper you can also reach out to the shopper proactively to solve the dispute before it escalates.
⚠️ Exception: Fraudulent transactions are immediately escalated to chargeback disputes.
Enquiry disputes
Enquiry disputes are an early step that can help you avoid chargeback fees. At this point your best strategy is to communicate directly with the customer, they might choose to cancel the dispute.
For example, if an order is just delayed, you can let the customer know it's on the way.
You have three options for handling an enquiry dispute:
Accept the dispute – Agree to the refund and issue it to avoid any chargeback fees. This can also be done through refunding the order.
Let it escalate – If no action is taken within 35 days*, it automatically becomes a chargeback dispute. At that stage, you’ll be able to submit evidence.
Contact the customer- You can contact the shopper to find an amicable solution and have the shopper withdraw their dispute.
If you choose to initiate a refund the dispute will automatically close before escalation.
Full refunds (≥95% of the disputed amount) will close the enquiry within about 10 minutes.
Partial refunds (<95% of the disputed amount) trigger a 48-hour waiting period before Klarna closes the enquiry.
This delay allows Klarna to detect if additional refunds are issued and helps prevent shoppers from creating new disputes.
During these 48 hours, the enquiry is paused and will not be escalated by Klarna.
*This process may be different in some cases.
Refund requests as enquiry disputes
Customers using Klarna often initiate enquiry disputes as a way to request refunds. Disputes labelled with the reason code Network reason code: Return are often just refund requests. Contact the customer to confirm their request and process the refund if needed.
Chargeback disputes
If the enquiry isn’t resolved after 35 days, Klarna escalates it to a chargeback dispute. Kustom will then place a hold on the disputed amount and the potential dispute fee, which will be added to your settlements.
Your options:
Submit one structured response within 13 days.
Win the case – The funds and fee are returned.
Lose the case – Kustom deducts the amount and Klarna refunds the customer.
Key reminders
⚠️ You only get one chance to respond – no follow-ups allowed.
⚠️ Missed the deadline? The dispute is automatically lost.
⚠️ All outcomes are final
Important: Kustom does not handle disputes or make any decisions regarding their outcome. The decision is made by the financial institution or platform where the customer submitted the dispute (e.g., their bank, card issuer or Klarna).
Dispute Categories and Suggested Evidence
See below for Klarna dispute categories and suggested evidence.
Product not received
Attach all the shipping details, such as the tracking number, carrier, shipped date, and customer communication.
Credit not processed
If you receive the returned product, attach the date when the customer initiated the return and any other information related to the return.
If the customer confirms that the dispute is for a partial order, share the customer communication and the return order amount.
If the return hasn’t been received, share when the customer initiated the return and make a note that the return hasn’t yet been received.
If the customer didn’t communicate or failed to reply to your request, document in the evidence when your team attempted to contact the customer, the number of attempts made, and the lack of response received.
If you fully or partially refunded the payment before it becomes a chargeback dispute, attach the refund details.
Verifying Return Status
If the return has not been received: Respond to the dispute with evidence showing you haven’t received the return yet. Supporting documentation could include delivery or shipment proof and related customer communication.
If the return has been received: Verify whether the returned items match the refund requested. If they do not:
Submit evidence detailing what has been received and refunded.
Dispute any incorrect claims with appropriate documentation.
Managing Partial vs Full Returns
Partial disputes require careful handling to match the refund amount appropriately:
If the customer disputes the full order but only part was returned:
Request the customer to withdraw their dispute and refile it for the correct amount.
Alternatively, dispute the claim by providing clear evidence of the items returned and those kept.
If only one item out of a multi-item order was returned:
Clearly document which item was returned and refunded, and submit this evidence as part of the dispute. This strategy ensures transparency and shows compliance with the refund policy.
Fraudulent
Share the shipping policy as an attachment or link to your shipping policy.
General
If the customer confirms that the price is incorrect, attach all the supporting documents against the claim, such as order details.
If you fully or partially refunded the payment prior to it becoming a chargeback dispute, attach the refund details.
Klarna dispute fees
If a dispute is lost, a non-refundable fee will be charged based on the customer’s country. Kustom is charged this fee by Klarna when a chargeback dispute is lost, and this cost is passed on to the merchant.
All fees below are excluding VAT:
Buyer country | Currency | Klarna Dispute fee (in local currency) |
EEA | EUR | 15 |
UK | GBP | 10 |
Switzerland | CHF | 15 |
Norway | NOK | 150 |
Denmark | DKK | 150 |
Sweden | SEK | 150 |
Poland | PLN | 15 |
Czech Republic | CZK | 250 |
US | USD | 15 |
Canada | CAD | 20 |
Australia | AUD | 25 |
New Zealand | NZD | 25 |
Romania | RON | 70 |