Enquiry disputes
Enquiry disputes are an opportunity to resolve a customer’s issue before the dispute escalates to a chargeback and carries a fee. Contact your customer during the 35-day enquiry period. Listen to the customer’s reason for raising this dispute to find an amicable resolution within the 35-day period preceding automatic escalation.
For example, a customer you successfully reassure that their purchased goods are delayed rather than undelivered can withdraw their enquiry dispute directly with Klarna.
You can also perform one of the following actions:
Accept the dispute. Confirm the disputed amount with the customer and issue a refund. Refunding during the enquiry dispute period avoids a dispute fee.
Allow the dispute to escalate. If you’re unable to resolve the issue within the 35 days, you can submit evidence to challenge the dispute after it escalates to a chargeback.
For return-related disputes: If the requested refund aligns with documented returns, process the return and refund promptly. If inconsistencies exist, gather and submit evidence supporting your position, such as proof of incomplete returns or customer communication.
Refunds as enquiry disputes
Customers paying with Klarna use enquiry disputes as a means to request refunds from businesses. If you receive an enquiry dispute with the Return Klarna dispute code, consider this the customer’s request for a refund, rather than a greater dispute against the payment. As with other enquiry disputes, contact the customer, understand why they’ve requested the refund, and process it appropriately. When dealing with return-related disputes:
Verify whether the returned items match the requested refund.
Provide clear communication to customers if the return does not align with the refund request.
Submit appropriate documentation regarding the status of the returned items for dispute resolution.
Chargeback disputes
If an enquiry dispute remains unresolved after the 35-day timeframe, the dispute automatically escalates to a chargeback dispute. Kustom withholds the disputed funds and the associated dispute fee until the dispute is resolved.
During the chargeback dispute stage, you can counter disputes by submitting evidence to Klarna through the Kustom Portal. Starting from the chargeback dispute creation date, you have to submit evidence by the deadline displayed in the Portal. If you counter the dispute by submitting evidence, Klarna evaluates your response to decide the outcome. When submitting evidence for return-related disputes as chargebacks, include:
Itemized records of returned merchandise and the refund amount.
Proof of delivery or shipment for items claimed as returned.
Communication records with the customer regarding the return status.
If you win the dispute, Kustom releases the aforementioned withheld funds to your account, including the associated dispute fee.
General guidelines
For general guidelines, please see our full article on responding to disputes.
Dispute Categories and Suggested Evidence
See below for Klarna dispute categories and suggested evidence.
Product not received
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
Fraudulent
Share the shipping policy as an attachment or link to your shipping policy.
General
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.