> ## Documentation Index
> Fetch the complete documentation index at: https://docs.xpaycheckout.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Klarna FAQs for Merchants

> Comprehensive guide to Klarna integration, payment options, and requirements for merchants using xPay

### In which geographies can Klarna be used?

> Currently, Klarna on xPay is supported only for **U.S.-based customers using USD**. Non-U.S. cards or billing addresses are not supported.

### What payment options does Klarna offer?

> Klarna provides multiple financing plans based on the consumer's credit profile:
>
> | Plan Type               | Typical Interest APR\* | Amount Eligibility |
> | ----------------------- | ---------------------- | ------------------ |
> | Pay in 4 (bi-weekly)    | 0%                     | 35 to 2,500 USD    |
> | Pay in 3 (monthly)      | 0% to 13.99%           | 149 to 10,000 USD  |
> | 6-Month Plan (monthly)  | 7.99% to 19.99%        | 149 to 10,000 USD  |
> | 12-Month Plan (monthly) | 8.99% to 23.99%        | 149 to 10,000 USD  |
>
> *Ranges are indicative, based on observed data. While Klarna's official APR range goes up to 35.99%, the highest rates we've seen across customers with lowest credit quality would be 25-28%.*

### How is Klarna's credit decisioning handled?

> Klarna underwrites each transaction individually using a **soft credit pull**. The following factors are considered:
>
> * Customer's credit score
> * Existing Klarna balances
> * Billing/shipping address match
> * Transaction amount
> * General risk signals based on account activity

<Note>
  **Important**: Merchants are not involved in approval decisions – Klarna independently assesses each transaction.
</Note>

### What are the consumer requirements to use Klarna?

> To be eligible, a user must have:
>
> * A valid **U.S.-issued debit card** (credit cards are not accepted for repayments)
> * A **U.S. billing address**
> * Be **18+ years old**
> * A valid **Social Security Number (SSN)**
> * A credit profile that meets Klarna's internal approval thresholds

### Why might a Klarna transaction be declined?

> Common reasons include:
>
> * Low or insufficient credit score
> * Existing unpaid Klarna balances
> * Mismatch in billing and shipping addresses
> * High-risk transaction patterns
> * Incorrect billing information
> * Attempt to pay in a non-supported currency or from a non-U.S. card

### Can users see their exact APR and plan before confirming?

> **Yes**. Klarna presents the exact APR, tenure, and payment schedule before the user confirms the transaction, ensuring full transparency.

### How are late or missed payments handled?

> Klarna charges a late fee equal to **25% of the missed installment amount**, capped at a maximum of **\$7**.

### Can consumers repay using a credit card?

> **No**. Klarna only accepts debit cards or linked bank accounts for repayments. This is to prevent users from paying off credit with more credit and to promote responsible borrowing.