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 bank with Tesco Bank, Halifax or Bank of Scotland and 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 website.