Klana - no discount alllowed

Anis28

Two different retailers have told me the instore or online discounts can’t be applied if paying for goods via klana. Why is this? It doesn’t feel right that people needing to spread the cost over longer are penalised and need to pay more than someone who can pay that day. As if that’s the case it’s not really interest free as you’re paying 10/15 or whatever % more as you’re not getting the discount. Any views or ideas on this. Just felt wrong so wanted to post especially as expect a lot of people may use klana over Christmas Thanks for reading 

JCS1

I'm guessing Klarna will take a cut, so the retailer would effectively give a discount twice as a result.

[Deleted User]

Klarna operate on a model which is fairly similar to you buying a £100 part, they get £3 and vendor gets £97 hence vendor is already giving a discount (of sorts) and giving you a further discount cuts into their model. 

Ebe_Scrooge

I suspect that the above answer is correct.  Remember, there's no such thing as interest-free credit - someone has to pay for it somewhere along the line, however you dress it up.

I suppose the counter-argument might be to save up beforehand and buy the item outright - even assuming the item is something you "need" rather than "want".

Dave_5150

It must be vendor specific as I have bought discounted goods from a few websites that still offer Klana as payment

MalMonroe

Anis28 said:

Two different retailers have told me the instore or online discounts can’t be applied if paying for goods via klana. Why is this? It doesn’t feel right that people needing to spread the cost over longer are penalised and need to pay more than someone who can pay that day. As if that’s the case it’s not really interest free as you’re paying 10/15 or whatever % more as you’re not getting the discount. Any views or ideas on this. Just felt wrong so wanted to post especially as expect a lot of people may use klana over Christmas Thanks for reading 

Hi, Klarna's website says "Please note that terms and conditions can differ between e-stores. For complete and updated terms and conditions, please contact respective e-stores" so it may be that some retailers don't allow discounts but some do. If possible, as Klarna suggest, you could contact the retailers for their T&Cs. It seems to be the retailers who're being difficult, not Klarna.

You could always contact them just to clarify things -  here's their website - https://www.klarna.com/uk/customer-service/

They do say that they are always there for, and want to help, all of their customers.

phillw

Anis28 said:

It doesn’t feel right that people needing to spread the cost over longer are penalised and need to pay more than someone who can pay that day.

None of us are entitled to buy anything. We live in a society where you need money to buy things. 

Unless you need to buy something necessary to you or your families survival or clothes for work etc, then you should avoid klarna as much as you can.

[Deleted User]

Anis28 said:

Two different retailers have told me the instore or online discounts can’t be applied if paying for goods via klana. Why is this? It doesn’t feel right that people needing to spread the cost over longer are penalised and need to pay more than someone who can pay that day. As if that’s the case it’s not really interest free as you’re paying 10/15 or whatever % more as you’re not getting the discount. Any views or ideas on this. Just felt wrong so wanted to post especially as expect a lot of people may use klana over Christmas Thanks for reading 

Life isn't fair, if I was a rich person I could buy a house for cash and rent it to a poor person to make money from them. Someone paying cash or upfront can negotiate a discount yes, perhaps someone who cannot afford to buy it without using a service like Klarna needs to look for something cheaper or do without?

MrFrugalFever

Now that Klarna reports to CRA’s, I’d be dubious at the impact this would have and how lenders may perceive this.

Ebe_Scrooge

MrFrugalFever said:

Now that Klarna reports to CRA’s, I’d be dubious at the impact this would have and how lenders may perceive this.

The original question was about retailers giving/not giving discounts for those who use Klarna.

However, as far as your credit history goes, it would most likely be viewed as a positive - you've been given a loan on which you've repaid all instalments correctly (assuming you do, indeed, make the correct payments when required!).  A lender will not have any idea (or care) whether you paid a fair price for the goods - what they will be interested in is that someone was prepared to give you a loan, and that you made all agreed repayments on time.  Which will actually go some way to building up a positive credit history.

mjm3346

MrFrugalFever said:

Now that Klarna reports to CRA’s, I’d be dubious at the impact this would have and how lenders may perceive this.

As in a bit like having a payday loan so generally if some one had a proper choice they would go elsewhere and probably not a high value customer a retailer would worry about