Dispute Flow
Klarna disputes may go through two stages and have multiple different statuses. The process will generally follow the flow below.
Shopper raises dispute
When a shopper opens a dispute with Klarna, Klarna will first advise the shopper to:
- return the items in case of Returns as the selected dispute reason.
- reach out to you in case of other dispute reasons.
Airwallex will be notified if the shopper proceeds to raise the dispute.
Stage 1 - RFI
Airwallex will create an RFI (Request For Information) dispute case in your dispute management workflow, visible on the Airwallex web app or through the API.
After the shopper reports a dispute/return to Klarna, you have 21 days to resolve the case (“Resolution Time”). Unauthorized purchases move directly to the Chargeback stage due to the urgency.
You are strongly advised to reach out to the shopper directly to resolve the issue. No dispute fee will be charged if the dispute is resolved in the RFI stage. Klarna disputes resolved in the RFI stage will also not count toward your chargeback ratio.
Stage 2 - Chargeback
If you and the shopper can't reach a solution on your own within the given Resolution Time, Klarna will step in to investigate. First, Klarna will evaluate the information provided by the shopper. This will help Klarna determine if a dispute is still valid or if it should be rejected.
If the dispute is valid, Klarna will notify Airwallex and escalate the dispute to the Chargeback stage, visible on the Airwallex web app or through the API. You will be able to submit the requested information to defend your case. See more details below.
Klarna may request information from you up to 5 times, if Klarna deems your submitted materials as inadequate. This process will also allow more time for the delivery of physical goods.
After receiving the necessary information from you, a Klarna agent will make a decision and resolve the dispute:
If the dispute is resolved in favor of the shopper, you will lose the dispute. The shopper will be refunded.
If the dispute is resolved in your favor, the shopper’s invoice will be re-activated.
RFI Stage
RFI is intended to resolve disputes without dispute fees before they enter the Chargeback stage. Upon receiving a dispute, Klarna will open a dispute case and notify Airwallex. In turn, Airwallex will create an RFI dispute case in your dispute management workflow.
During the RFI stage, a dispute can have one of the following statuses:
- Requires response
- Accepted
- Reversed
Requires response
In this status, you can either reach out to the customer to resolve the issue, or accept the dispute directly by refunding the Klarna payment. Available actions:
- Accept the dispute - We will let Klarna know that you will refund the transaction. Please note that the transaction is not automatically refunded and that you will need to initiate the refund yourself. If the refund is not completed or only a partial amount is refunded, Klarna may still escalate the dispute. You will be charged a refund fee when initiating the refund, but no dispute-related fees.
Airwallex does not automatically trigger refund if you accept the dispute, in case you want to only issue a partial refund.
- Resolve the dispute with the shopper - Please reach out to the shopper directly to resolve the issue. If the shopper is willing to cancel the dispute, the shopper can close the dispute case by reporting the dispute as solved. You can direct the shopper to the Klarna guide on how to resolve the dispute once an agreement has been made. No dispute fees will be charged if the shopper resolves the dispute case during the RFI stage.
Timeframe You usually have 21 days calendar days ("Resolution Time") after receiving the dispute to complete one of the actions above. Otherwise, the dispute will be escalated to the Chargeback stage and you’ll be charged an Airwallex dispute fee. For "Unauthorized Purchases", the dispute case has 0 Resolution Time, meaning the dispute case will be escalated immediately upon its creation.
Accepted
In this status, the dispute has been accepted and the payment will be refunded to the shopper. You may find a dispute in this status if:
- You accepted the dispute via web app or API. Note, you still need to refund the corresponding Klarna payment.
- The dispute expired. (i.e., you did not make a decision within the given timeframe).
Please note that this status is final and you won’t be able to overturn the dispute.
Reversed
In this status, the dispute has been canceled by the shopper or Klarna. No further action is required.
Chargeback Stage
When a Klarna dispute case is not resolved during the Resolution Time, Klarna will assign an agent to step in and investigate. Klarna will first evaluate the information provided by the shopper. This will help Klarna determine if a dispute is still valid or should be rejected.
If the dispute is valid, the dispute will be escalated to the Chargeback stage. You will be charged an Airwallex chargeback fee at this time. Regardless of the subsequent case outcome, you will not be charged again for the same case.
Klarna’s support team will request materials from you to better assess the case. You can submit the requested material via web app or the dispute management API API. When necessary, Klarna may request additional information from you, up to 5 times in total. A Klarna agent will adjudicate the result of the dispute based on the information provided.
During the chargeback stage, a dispute can have one of the following statuses:
- Requires response
- Accepted
- Challenged
- Won
- Lost
- Reversed
Requires response
In this status, you can decide whether to accept or challenge the dispute. Available actions:
- Accept the dispute - The disputed amount will be refunded to the shopper.
- Respond to the dispute with supporting evidence - We will submit the supporting evidence to Klarna for their review. A Klarna agent will adjudicate the case after your responses have been submitted. Please note, Klarna may request additional materials if it is not convinced of the legitimacy of the payment based on your evidence. For each dispute reason, the materials requested by Klarna are different:
| Dispute reason | Materials requested at chargeback * indicates mandatory |
|---|---|
| Returns | - Have you received the return (Y/N) * - Message Reply (TXT) - Additional support documentation (max 7.3 MB) |
| Goods not received | - Tracking number (TXT) * Shipping carrier (TXT) * - Shipping date (TXT) * - Proof of delivery Document (pdf, png, jpg etc, max 7.3 MB) - Message Reply (TXT) - Additional support documentation (max 7.3 MB) |
| Incorrect Invoice | - Message Reply (TXT) - Additional support documentation (max 7.3 MB) |
| Faulty Goods | - Message Reply (TXT) - Additional support documentation (max 7.3 MB) |
| Already paid | - Message Reply (TXT) - Additional support documentation (max 7.3 MB) |
| Unauthorized purchases | - Order Type Single choice (services/physical goods/travel or tickets) * - Has the order shipped? Single choice (Yes, full order shipped/ Yes, patrial shipped/No) * - Shipping Carrier (TXT) * - Delivery address (TXT) * - Was the order delivered with proof of delivery (Y/N) * - Tracking ID (all) (TXT) * - Last 3 digits of customer phone number to receive notification. (Number) * - Have any goods been returned? (Y/N) * - Have you had contact with customer (Y/N) * - Additional support documentation (max 7.3 MB) |
Timeframe You have 11 days (4 days for Unauthorized Purchase disputes) after the dispute was escalated to the chargeback stage to take one of the actions above. If no action has been taken, the dispute will automatically be accepted. When Klarna requests additional materials, you have 4 days to take one of the actions above.
Accepted
In this status, the dispute has been accepted and the payment will be refunded to the shopper. You may find a dispute in this status if:
You accepted the dispute via web app or API. In this case, a refund will be triggered automatically. You will not need to initiate the refund on the Klarna payment.
The dispute expired. (i.e. you did not make a decision within the given timeframe)
Please note that this status is final and you won’t be able to overturn the dispute.
Challenged
In this status, we will respond to Klarna with evidence provided by you. Klarna will review your submitted evidence and decide whether to request additional materials or adjudicate the case.
Won
In this status, Klarna has accepted your response by not further escalating the dispute. No further action is needed, as this status is final for all participants.
Please note that the dispute fee remains non-refundable in such cases.
Lost
In this status, Klarna has not accepted the evidence provided by you. The payment will be refunded to the shopper.
Please note that this status is final and you won’t be able to overturn the dispute.
Reversed
In this status, the dispute has been canceled by the shopper or Klarna. No further action is required.