Klarna and paying by credit card

DeadTall

Just a warning - don't pay your Klarna account off with a credit card - you'll probably incur a 'cash transaction' fee & interest on your credit card each time you do :-(

I just happened to look at my credit card account today & noticed a 'front end' fee which my credit card company confirmed was for a 'cash transaction', and that this was because I paid my Klarna account by credit card.

In addition to the fee, they then charge interest on the amount of the Klarna transaction, from the date of the transaction (which was 23.11) until the statement date (for me this is 18.12), and then again from the statement date until you pay the statement off in full (which for me is 20 days after the statement date).

While I accept that my credit card T&Cs would have said that cash transactions incur charges & interest, I also pointed out to them that this is an unusual / new way of paying for things, that lots of people are going to get caught out on. So I had a good old moan at them and they agreed to take a debit card payment from me today, to "pay off" the Klarna transaction, thus limiting the interest I will be charged to the period between the Klarna transaction and today.

The amounts aren't very significant - it was a £45 purchase, I was charged £1.80 fee, & so I'll have to pay this plus interest on £45 for 8 days (all figures approximate).

Off to delete my Klarna account!

System

Sounds like your quarrel is with the way Klarna report transactions as opposed to your credit card company who effectively just receive the information.

Craig1981

i would take complaint up with Klarna - hey openly advertise paying with debit or credit card - cant see anything regarding how transactions with CC work though, but havent read fully their T&Cs

nowadays, a lot of CC companies will charge you for payments being made to other financial products/services

stevenhp1987

Had to Google what Klarna was...

They offer finance on products, e.g. buy now pay later.

If you pay finance off with a credit card, it will be treated as a cash transaction (it is, you're paying off finance) and thus the fee would be correct.

If you want to avoid the fee, but still use your credit card, just buy direct with the shop and cut out the middle-man finance company?

step1974

Hi. I had to go and check my account as I paid with Credit Card for a Klarna BNPL at Burton Menswear. This was with a John Lewis Mastercard. I was not charged anything for this. I think it must depend on the card you use.