Klarna FAQ - Canada

How does Pay in 4 work?
Pay in 4 splits your purchase into 4 equal payments—25% up front and the rest over 6 weeks, with no fees if you pay ontime.
Payment Schedule:
First payment: Due at purchase (25% of total)
Second payment:2 weeks after first payment
Third payment:4 weeks after first payment
Final payment:6 weeks after first payment

You'll receive automatic reminders before each payment, and payments are automatically charged to your chosenpayment method. There are no interest charges and no fees when you pay on time.
Note: A higher initial payment may be required for some consumers. See Canadian payment terms atklarna.com/ca/paylaterin4.

What is Pay Later in 30 Days?
Pay Later in 30 Days allows you to try your order before you buy it. No upfront payment is due and your order will beshipped as normal. Once your order has shipped, you'll receive an email with instructions to pay within 30 days.
Benefits:
Try before you commit to paying
No upfront payment required
30 days to pay in full
No interest charges
Easy returns if items don't fit or meet expectations

This option is perfect for trying clothes, shoes, or other items where fit and quality matter most to you.

How does Monthly Financing work?
Monthly financing is available when you choose to open an account with Klarna at the time of checkout. This affordable and highly flexible open-end line of credit is issued by WebBank in partnership with Klarna.

Key Features:
Extended payment terms for larger purchases
Flexible monthly payments
Can be used anywhere in the Klarna merchant network
Competitive interest rates
Credit limit based on your financial profile
Interest is charged on monthly financing options. The specific terms, interest rate, and monthly payment amount will be clearly disclosed before you accept the financing offer.

Important: Monthly financing applications will take credit score and credit history into consideration when determining approval.

Are there fees for Pay in 4 and Pay Later in 30 Days?
Great news! No fees when you pay on time.

There are no upfront fees, no interest charges, and no hidden costs when you use Pay in 4 or Pay Later in 30 Days and make your payments on time.

Late Payment Fees:
If a payment is returned or refused due to insufficient funds:
NSF Fee: CAD $5 (one-time fee per failed payment)
This fee compensates us for costs incurred due to the dishonoured payment
The fee is added to your next scheduled payment
We'll notify you if a payment fails and won't resubmit for at least 2 days

What are the costs for Monthly Financing?
Monthly financing options do involve interest charges, as this is an extended credit facility. The specific terms depend
on your creditworthiness and the financing option you choose.

What You'll See Before Agreeing:
Total amount financed
Annual Percentage Rate (APR)
Monthly payment amount
Total cost of credit
Payment schedule
Any applicable fees

All costs and terms are clearly disclosed before you accept any financing agreement. You'll never be surprised by hidden fees or unexpected charges.

No Prepayment Penalty: You can pay off your balance early at any time without additional fees.

Does my payment method provider charge additional fees?
While Klarna doesn't charge fees for most payment options, your bank or credit card provider may charge fees under your agreement with them.

Potential Provider Fees:
Credit card interest if you carry a balance
Cash advance fees (if your provider treats Klarna payments as advances)
Foreign transaction fees (rare, as Klarna operates in Canada)
Over-limit fees if the payment exceeds your credit limit

If you have questions about potential charges from your payment method provider, contact them directly. These fees are separate from any Klarna charges and are governed by your agreement with your bank or card issuer.