Handling Refunds: Klarna vs. Card Payments
Refund processes can sometimes appear complex, especially when different payment methods such as Klarna or direct card payments are involved. Below, we outline the steps and responsibilities to help clarify who to contact and what to check depending on the refund scenario.
Overview of Refund Responsibilities
Refund responsibilities depend on the payment method used:
Refunds processed through Klarna: Klarna manages transactions and payouts to customers.
Refunds for payments made by card (e.g., Visa/Mastercard): Refunds are handled by the card's issuing bank.
Kustom's role: Kustom cannot intervene directly in the refund
Refunds for payments made through Klarna
If an order was paid using Klarna and the order has status refunded in Kustom Portal, Klarna is solely responsible for processing and sending the refund to the customer. Kustom and merchants do not have visibility or control over this process. Action for Customers: If the refund is marked as completed but not received, contact Klarna customer support directly to trace the transaction.
Situations where the refund was completed require coordination between the customer and Klarna. Klarna will work to trace any disbursement issues to the customer's account.
Refunds for payments made by card
Role of the Bank for Card Transactions
When a payment is made directly via a bank card (e.g., Mastercard, Visa) and the customer requests a refund:
Refunds are processed and managed by the issuing bank.
If the customer doesn’t see a separate refund entry in their account, they should check if a hold or authorization tied to the original purchase has been released. Sometimes, banks adjust reservations without generating separate refund lines.
Action for Customers: Customers should contact the card issuer to:
Confirm whether a refund or adjustment was processed.
Inquire about releasing any pending holds or authorizations.
When Kustom can help
If the customer hasn’t received their refund after 10 working days, you as the merchant can contact Kustom support on their behalf. Kustom support will be able to provide a trace ID if the refund was for a purchase made by card outside of Klarna.
Please note that Kustom support will only provide a trace ID after the full 10 working days have passed without the customer receiving the funds.
End Customer Guidelines
Here’s a quick reference for customers experiencing refund issues:
Klarna Payments: If the order is refunded but not received, contact Klarna for a detailed trace.
Card Payments: Check for adjustments in your account and contact your bank for further support if issues persist.
By following these steps based on your payment method, you can ensure your refund query is escalated to the appropriate party for a resolution.