Klarna payment in the web shop

Klarna Payments as a payment option in the web shop. Lets the customer pay by invoice, pay now or split the amount via Klarna, directly in the web shop's own checkout.

TABLE OF CONTENTS

About Klarna payment
How it works
The customer experience at checkout
Internal handling
Setup
Troubleshooting and limitations
Frequently asked questions
Glossary

About Klarna payment

Klarna payment lets customers choose Klarna as the payment method at checkout, typically "Pay later", "Pay now" or "Split". The customer selects Klarna, fills in information in Klarna's widget, and the order is created automatically. The customer gets flexibility, and the business gets a payment guarantee from Klarna.

NOTE: Telaris uses Klarna Payments, which is integrated into the web shop's own checkout. This is not the same as Klarna Checkout (owned by Kustom), which replaces the entire checkout. Klarna Checkout / Kustom is not supported in Telaris.

Klarna payment solves typical challenges with card payment and your own invoicing:

The customer decides whether to pay now, later or split the amount
Higher conversion because the barrier to purchase is lower
Klarna takes the credit risk, and the business is paid regardless of when the customer pays
Guest ordering is supported, the customer does not need an account in the web shop

How it works

Klarna shows the available payment options directly at checkout. Which options are shown (pay later, pay now, split) is controlled by Klarna based on market, amount and customer profile, and cannot be overridden in Telaris.

Main features

Several payment options in a single integration
Klarna widget where the customer enters information in Klarna's own secure component
Guest ordering without login
Click and collect, provided the store has a complete address
Automatic order linking, the payment is registered as a prepayment
Capture on invoicing and refund via Telaris
Cancellation from Telaris

Interaction with other modules

Web shop: the payment is part of the checkout flow
Order processing: the order is created automatically with payment information
Finance and invoicing: the payment is captured on invoicing, and Klarna is notified of the amount
Accounting export: Klarna payments are included in the export to accounting systems

The customer experience at checkout

Step 1: Go to checkout.The customer adds items to the basket and goes to the checkout.

Step 2: Fill in delivery information.Name, email, phone, address and any delivery options. This information is shared with Klarna to assess the payment options.

Step 3: Choose Klarna.Under payment options the customer selects Klarna (shown with the Klarna logo).

Step 4: Choose a payment option.Klarna shows the available options as radio buttons:

Pay later: invoice from Klarna after delivery
Pay now: immediate payment via Klarna
Split: instalment payment over time

Step 5: Fill in the Klarna widget.The customer may enter additional information (for example date of birth). The widget is provided by Klarna, and the information does not touch Telaris' servers.

Step 6: Submit the order.The customer clicks "Send order", and Klarna approves or declines the payment.

Step 7: Confirmation.On an approved payment the customer is sent to a confirmation page. On a decline, "Not approved" is shown, and the customer can choose another payment method.

Internal handling

After ordering

The order is created automatically with status "web" (or the configured web shop status)
A prepayment is registered on the order with type "Klarna", amount and Klarna's order reference, visible in the prepayment section on the order page in PCS
The amount is authorised with Klarna, but not captured

On invoicing (capture)

The order is invoiced normally in Telaris. Capture towards Klarna happens automatically as part of invoicing, no extra action is needed
Klarna then sends payment instructions to the customer, or charges the customer, depending on the chosen option
The capture amount can be lower than the authorised amount, for example on a partial delivery

NOTE: Klarna's authorisation expires after 28 days. Invoicing (capture) must happen within the deadline, otherwise the payment can no longer be captured, and the order must be handled manually.

Refund

A refund is done from the invoice page in the finance module (Finance → Invoices → open the invoice) by registering a payment transaction with a negative amount
The refund is sent to Klarna, which handles the repayment to the customer

Cancellation

Unprocessed Klarna payments can be cancelled from the prepayment section on the order page in PCS (Orders → Open the order)
Klarna then releases the authorisation

Setup

To activate Klarna you need a username and password from Klarna. No separate licence is required beyond the web shop licence.

Step 1: Create a Klarna account

The business must have a Klarna Merchant account. Klarna provides an API username and password for the integration.

Step 2: Configure Klarna in the web shop settings

Go to the web shop settings (Webshop Settings)
Find the payment transaction tab
Open the "Klarna" panel
Fill in the fields:
- Username: the API username from Klarna
- Password: the API password from Klarna
- Test Environment: tick to use Klarna's test environment

Once the username and password are saved, Klarna is shown automatically as a payment option at checkout.

Test and production mode

Ticked: payments are processed in Klarna's test environment (playground), no real transactions
Not ticked: real payments in production

Remove the test environment tick when the customer is ready to go live.

Prerequisites

Active Klarna Merchant account
Web shop created and configured in Telaris
Products with the correct VAT rate (sent to Klarna for each order line)
For click and collect: the warehouse or store must have a complete address (name, street address, postal code, city, country)

Limitation for click and collect

Klarna is hidden automatically for click and collect if the selected warehouse lacks a complete address. Make sure the warehouse address is filled in.

Troubleshooting and limitations

Common errors

Klarna is not shown as a payment option at checkout

Username or password is missing in the web shop settings
The web shop is not running over HTTPS (Klarna requires a secure connection)

"Klarna failed" when selecting Klarna

Session creation towards Klarna failed, check that the username and password are correct
The test environment is enabled, but the credentials are for production, or vice versa

"Not approved" when the customer tries to pay

Klarna has declined the customer based on its own credit assessment. This is outside Telaris' control. The customer can try another payment method.

Klarna disappears for click and collect

The selected warehouse lacks a complete address, check that name, street address, postal code, city and country are filled in

"We were unable to process your payment"

The Klarna order could not be created. The customer should contact the business or choose another payment method.

Known limitations

Norway only (NOK). Other markets and currencies are not supported without customisation
The payment options are controlled by Klarna and cannot be chosen by the business
28-day authorisation deadline. Capture must happen within the deadline
A complete address is required for click and collect
The session expires after about 59 minutes. A new session is created automatically if the customer takes a long time
Klarna Checkout (Kustom) is not supported. Telaris uses Klarna Payments only

What the module does not do

Does not replace the entire checkout flow
Gives no control over which Klarna options are shown
Does not support markets other than Norway without customisation
Does not handle subscriptions or recurring payments

Frequently asked questions

Does Telaris support Klarna Checkout?
No. Telaris uses Klarna Payments. Klarna Checkout (owned by Kustom) replaces the entire checkout and is not integrated in Telaris.

Who decides which Klarna options the customer sees?
Klarna itself, based on market, order amount and customer profile. Telaris has no setting for this.

What happens if Klarna declines the customer?
The customer gets "Not approved" and can choose another payment method. The decline is based on Klarna's credit assessment.

Is the money charged immediately?
With "Pay now" the amount is charged immediately. With "Pay later" Klarna sends an invoice after delivery. The business receives the money from Klarna after capture.

When is capture done?
On invoicing in Telaris. Klarna recommends that capture is done when the goods are shipped or delivered.

Can a Klarna payment be refunded?
Yes, from the invoice page in the finance module (Finance → Invoices → open the invoice) by registering a payment transaction with a negative amount.

Can a Klarna payment be cancelled?
Yes, unprocessed payments can be cancelled from the prepayment section on the order page in PCS (Orders → Open the order).

Is there a deadline for invoicing after ordering?
Yes, 28 days. Capture must happen within the deadline, otherwise the order must be handled manually.

Does Klarna work for guests?
Yes, guest ordering is supported. The customer does not need an account.

Does Klarna work with click and collect?
Yes, but only if the warehouse has a complete address. Otherwise Klarna is hidden automatically.

Can I test Klarna without real transactions?
Yes, tick "Test Environment". Payments are then processed in Klarna's test environment (playground).

Glossary

Klarna Payments: Klarna's payment option integrated into the web shop's own checkout (what Telaris uses)
Klarna Checkout: a complete checkout solution that replaces the entire checkout, owned by Kustom (not supported in Telaris)
Kustom: the company that owns and operates Klarna Checkout
Authorisation: Klarna approves the payment and reserves the amount
Capture: the business notifies Klarna that the goods are delivered or invoiced, and Klarna activates the payment
Widget: Klarna's embedded component at checkout
Prepayment: the payment registered on the order before final settlement
Playground: Klarna's test environment