Applicable merchants: Oceanpayment merchants that have enabled Klarna as a payment method.

Key change: From November 1, 2026, all new Klarna disputes will be processed under the V4 flow—chargeback first, followed by representment, in the same way as credit card disputes. The order amount will be deducted as soon as a dispute is initiated, and a Dispute Fee will apply to every dispute.

Transition arrangement: October 2026 is the transition period. Some merchants will move to V4 before others. During this period, V2 and V4 disputes must be handled in two separate sections of the system.

1. Key Changes

The overall Klarna Dispute V4 process is aligned with the credit card dispute model: chargeback first, followed by representment. The main differences from V2 are shown below:

Comparison	Klarna Dispute V2	Klarna Dispute V4
Process	Consumer initiates a dispute → merchant communicates with the consumer during the grace period → Klarna reviews the case → a chargeback is issued if the representment fails	Chargeback first, followed by representment: the order amount is deducted as soon as the dispute is initiated, after which the merchant submits evidence
Order funds	The order amount is frozen for 120 days during the grace period; it is deducted if the merchant's representment fails after Klarna becomes involved	The order amount is deducted immediately when the dispute is initiated
Dispute Fee	Charged only for disputes in which Klarna becomes involved and the merchant loses, including dispute-refund and dispute-chargeback orders	Charged immediately for every dispute
Excess fees	An Excess Dispute Fee applies when the dispute rate exceeds the threshold	Once the dispute rate exceeds the threshold, an additional penalty applies on top of the Excess Dispute Fee. Klarna has not yet published the penalty scheme
Performance monitoring	Current monitoring criteria	Monitoring criteria remain unchanged

2. Migration Timeline

• October 1–31, 2026 (transition period): Klarna disputes will gradually move from V2 to V4 in stages covering 25%, 50%, 75%, and then 100% of dispute volume. Starting October 1, 2026, some merchants—and some merchants' Klarna MIDs—will enter the V4 flow.

• From November 1, 2026: All new Klarna disputes will be processed under the V4 flow.

• Existing disputes: Open disputes created under Klarna Dispute V2 will continue to follow the V2 flow until they are closed.

• From April 2027 (expected): Klarna Dispute V2 disputes are expected to have been phased out.

3. Changes to Dispute Reasons

V4 updates the dispute reason codes. Some V2 reasons have been consolidated, while others have been added or removed:

Dispute reason	Klarna Dispute V2	Klarna Dispute V4
Refund/return	Return	refund not processed
Products or services not received	Good not received	products or services not received
Defective goods or goods not as described	Faulty Goods	products defective or not as described
Cancelled products or services	Incorrect Invoice	incorrect amount
Duplicate transaction	Already Paid	incorrect amount
High-risk order	High risk order	purchase high risk
Pandemic impact	Pandemic impact	Removed in V4
Unauthorized transaction	Unauthorized purchases	purchase unauthorized
New in V4	—	non compliance
New in V4	—	non guaranteed payment program

4. Changes to the Dispute Process

4.1 Klarna Dispute V2 Flow (Current)

The V2 flow consists of three stages: grace period, dispute, and chargeback.

Stage	Order funds	Fee	Processing time
Grace period	The order amount is frozen for 120 days	None	The merchant communicates with the consumer and has 21 days to resolve the case
Dispute	—	A dispute refund incurs a Dispute Fee	The merchant submits evidence to Klarna and has 14 days to respond
Chargeback	The order amount is deducted	A chargeback incurs a Dispute Fee	Klarna reviews the evidence; the review may take up to 60 days

4.2 Klarna Dispute V4 Flow (New)

V4 removes the merchant-consumer communication stage. Klarna becomes involved in every dispute:

1. Dispute initiated (INITIATED): The order amount is deducted and a Dispute Fee is charged as soon as the dispute is initiated.

2. Evidence submission (Evidence Requested): The merchant submits representment evidence to Klarna within 21 days.

3. Klarna review (Evidence Under Review): The review may take up to 60 days.

4. Outcome (CLOSED): If the representment succeeds, the merchant receives a successful representment notification.

4.3 Key Differences Between V2 and V4

• Merchant response time: The merchant-consumer communication stage is removed. V2 provides a 21-day communication window plus a 14-day representment window, while V4 provides a single 21-day representment window.

• Funds: Under V2, the order amount is frozen during the dispute and is deducted only if the representment fails. Under V4, it is deducted as soon as the dispute is initiated.

• Fees: Under V2, a Dispute Fee is charged only when the merchant loses. Under V4, every dispute incurs a Dispute Fee.

5. Changes to the Klarna Dispute Fee

5.1 Changes to Charging Rules

Comparison	Klarna Dispute V2	Klarna Dispute V4
Standard charging rule	A Klarna Dispute Fee is charged only for orders where the dispute fails, including dispute-refund and dispute-chargeback orders	A Dispute Fee is charged immediately for every dispute
Excess Dispute Fee eligibility (dispute rate exceeds 1.5% for three consecutive months and more than 100 orders were processed during that period)	1.5%; denominator: 100 orders per month; EU and US calculated separately	1.5% = disputes in the current month / successful transactions in the current month; denominator: 100 successful orders accumulated over three months; EU and US calculated separately

While V2 and V4 coexist, Klarna Dispute Fees are charged separately according to the rules of each version. Once a merchant's Klarna MID migrates to V4, the V4 charging method applies. Some merchants' MIDs will begin migrating in October 2026.

5.2 Entry and Exit Rules for the Excess Dispute Fee

• Dispute-rate calculation: Disputes in the current month / successful transactions in the current month, including all disputes. EU and US are calculated separately, by website.

• Entry criteria: If the dispute rate is at least 1.5% for three consecutive months and there are at least 100 successful orders in total during those three months, an Excess Klarna Dispute Fee applies to every Klarna dispute.

• Exit criteria: If the dispute rate remains below 1.5% for three consecutive months, the standard Klarna Dispute Fee resumes in the following month.

6. Klarna Dispute Performance Monitoring

Klarna Dispute performance-monitoring criteria remain unchanged and are the same for V2 and V4. Under V4:

• Monitored dispute rate: Disputes in the current month / successful transactions in the current month. A rate of 1.5% or higher exceeds the threshold.

• Dispute reasons included in monitoring (four categories): Goods or services not received, Not as described or defective goods, Incorrect amount, and Purchase Unauthorized.

• Calculation level: By website and contracting entity.

• Consequence of exceeding the threshold: A Compliance penalty will apply. Klarna has not yet published the penalty rules.

7. Merchant Instructions During the Transition Period

While Klarna Dispute V2 and V4 coexist, merchants must handle Klarna disputes in two separate sections. V2 disputes are handled in the Klarna Disputes section, while V4 disputes are handled in the Credit Card Chargebacks section.

7.1 V2 Dispute Entry

Handle V2 disputes in the merchant dashboard under Payment → Dispute and Chargeback Management. Open the All Disputes tab to view the dispute list, respond to disputes, and track outcomes.

7.2 V4 Dispute Entry

Handle V4 disputes in the merchant dashboard under Dispute Management → Credit Card Chargebacks. When a merchant handles a Klarna Dispute V4 representment in the Credit Card Chargebacks section, the default search filters do not display Klarna Dispute V2 cases that do not require representment.

7.3 Comparison of Refund and Representment Rules

Once a V4 dispute is initiated, the order amount has already been deducted as a chargeback and cannot be refunded. The merchant must recover the funds through representment. A V2 dispute can still be refunded in the Klarna Disputes section. The changes to refund and representment handling are shown below:

Klarna Dispute	Refund	Representment submission	Representment outcome
Klarna Dispute V2	A refund is allowed and can be requested in the Klarna Disputes section	Submit the representment in the Klarna Disputes section	If the representment fails, a chargeback notification is issued; the outcome appears in the Credit Card Chargebacks section
Klarna Dispute V4	A refund is not allowed	Submit the representment in the Credit Card Chargebacks section	If the representment succeeds, a successful representment notification is issued; the successful outcome appears in the Credit Card Chargebacks section