Monitor disputes performance

Maintaining a low dispute rate is critical for continued access to Klarna's payment solutions. This guide explains how Klarna measures disputes, the 1.5% threshold, and strategies to keep your rate low.

Klarna continuously measures dispute activity to maintain a fair, transparent, and trustworthy environment for both customers and Partners. Disputes serve as key indicators of potential issues in the purchase journey. Through ongoing analysis of dispute levels and patterns, Klarna seeks to identify risks, assist Partners in mitigating root causes, and, where necessary, take measures to protect Klarna's brand, reputation, and customer trust.

The dispute ratio represents the proportion of Klarna transactions that result in a customer-initiated dispute — indicated by disputes communicated to you as "Dispute initiated". You are expected to maintain a dispute ratio within acceptable levels. A consistently low ratio supports continued access to Klarna's payment solutions and promotes customer confidence in your operations.

Elevated dispute ratios may indicate underlying deficiencies in areas such as:

To ensure a consistent and fair customer experience, you are required to maintain a dispute ratio below 1.5% of captured transactions. For this purpose, Klarna defines acceptable dispute ratio as the percentage of transactions subject to a first customer dispute relating to high-impact categories. Subsequent disputes on the same transaction are excluded from this calculation. The threshold applies specifically to disputes classified under the following reasons:

Dispute performance is a key indicator of customer experience and operational quality. Elevated dispute levels can erode customer confidence and affect your eligibility for Klarna's services. By maintaining a low dispute ratio, you contribute to a positive customer journey, operational efficiency, and sustained access to Klarna's full suite of products and payment offerings.

Klarna continuously monitors the dispute performance of all Partners on an ongoing basis. Should your disputes ratio exceed 1.5% of captured transactions, Klarna reserves the right to take corrective measures necessary to protect customers, ensure service quality, and safeguard Klarna's reputation.

Such measures may include, without limitation:

By continuing to use Klarna's shopping and payment solutions, you acknowledge and agree to these terms and Klarna's right to enforce them as described above.

You are expected to actively monitor your dispute performance and take corrective measures when approaching or exceeding the 1.5% dispute ratio. Klarna recommends reviewing operational processes and implementing improvements to address the root causes of disputes promptly.

Typical focus areas include:

For practical, dispute-reason-specific best practices, see Dispute evidence guidelines.

You can track your dispute performance through:

Use this data to monitor operational risks and train your support team for better outcomes.