Overview
In this article, we'll cover Frequently asked questions about Klarna.
Q - What is Klarna?
Klarna is a Buy Now, Pay Later payment option that allows your customers to split their invoice into 3 or 4 interest-free payments (depending on your region).
When a customer chooses Klarna:
You receive the full invoice amount upfront
The customer pays Klarna in installments
Installments are interest-free (subject to Klarna's terms
Customers will see the option to pay in installments directly in the payment portal:
Q - How does Klarna work?
If Klarna is enabled on your account:
The customer selects Klarna when paying an invoice
Klarna performs a credit assessment to confirm the customers eligibility
If approved, the customer can split the payment into 3 or 4 installments depending on your region.
You are paid immediately through Fergus Pay
Q - Who can use Klarna?
Customers must meet Klarna's credit eligibility criteria to use this payment method.
Approval is determined solely by Klarna. Fergus has no control over:
Credit checks
Approval decisions
Customer eligibility
If a customer is declined, they will need to use another available payment method.
Q - What are the Klarna Processing Fees and Transaction Limits?
Klarna has a different fee structure from standard card payments.
Region | Processing Fee | Maximum Invoice Amount | Number of Installments |
Australia | 5% + $0.40 | $2000 | 4 interest-free payments |
New Zealand | 5% + $0.40 | $2000 | 4 interest-free payments |
United Kingdom | 5% + £0.25 | £2000 | 3 interest-free payments |
Q - Can I pass the Klarna fee on to my customer?
Klarna can only be offered if you choose to cover the payment fee.
You cannot directly pass the Klarna processing fee on to your customer.
Q - How do I enable or disable Klarna?
Klarna can be managed at two levels:
Account Level: You can turn Klarna on or off in your Fergus Pay settings. This controls whether Klarna is available across your account.
Invoice Level: You can also enable or disable Klarna on individual invoices. This gives you flexibility to decide when Klarna is available to your customers.
Q - When do I receive funds from a Klarna payment?
You receive the full invoice amount upfront once the Klarna payment is successfully processed. Your payout timing follows your standard Fergus Pay payout schedule.
Q - Does enabling Klarna affect existing invoices?
No. Enabling or disabling Klarna applies to future invoices. It does not change payment options on invoices that have already been issued.