Why am I being charged fees for using Instalments with my Credit Card?

18 February 2020 - 1 min read





We have been made aware that some customers are being charged fees by their banks when using our Instalments product with a Credit Card.

If you have spotted any additional charge on your purchase please contact your bank and raise a dispute. We would also advise changing the card associated with your Instalments account to avoid further fees. You can do this at any time in the Klarna app. Simply, download the app and once you are logged in, select your Instalments order and hit the ‘change card’ button.

Whilst it is made clear in Klarna’s terms and conditions that some issuers may levy a fee, we would like to be clear that Klarna is not charging this fee, it is the banks themselves. The root cause of the issue is thought to be that the card issuers are classifying Klarna’s Instalments product in a way that allows them to levy a cash advance fee according to their own terms and conditions. Klarna is working with providers to try and resolve this issue as soon as possible, but it will need to be a combined effort, as we are unable to solve it alone.

We would like to apologise for any inconvenience caused.

If you have any other questions, please get in-touch with our team in our app or via our

Note: Klarna has introduced late fees on orders made on or after 16 March, 2022.

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Copyright © 2005-2024 Klarna. Klarna Financial Services UK Ltd is authorised and regulated by the Financial Conduct Authority (“FCA”) for carrying out regulated consumer credit activities (firm reference number 987889), and for the provision of payment services under the Payment Services Regulations 2017 (firm reference number 987816). Klarna Financial Services UK Ltd offers both regulated and unregulated products. Klarna’s Pay in 3 instalments and Pay in 30 days agreements are not regulated by the FCA. Incorporated in England (company number 14290857), with its registered office at 10 York Road, London, SE1 7ND.