In order to maintain security, compliance, and operational continuity within the Klarna Network, Acquiring Partners must manage the lifecycle of Payment Products on Partner Accounts and keep their own systems in sync with Klarna.

Payment Products controls whether a Partner Account can place new Klarna transactions. When a Payment Product is disabled, the Partner Account cannot process new transactions with that Product, but may still manage previously completed payments (for example, refunds).

The Acquiring Partner have the authority to disable or re-enable Payment Products associated with Partner Accounts when necessary via the API using the following operations:

• disableAccountPaymentProductById : Disables a Payment Product
• enableAccountPaymentProductById : Enables a Payment Product

The lifecycle diagram and table below describe the allowed states and transitions for a Payment Product, including how it moves into and out of disabled states.

The Acquiring Partner can enable or disable a Payment Product based on operational or compliance needs using the corresponding API calls. When Klarna changes the lifecycle state of a Payment Product, Klarna triggers the corresponding webhook so the Acquiring Partner can keep its internal systems synchronized.

When a Payment Product on a Partner Accounts is disabled:

• The Partner cannot initiate new Klarna transactions with that product.
• The Partner can continue to manage existing payments created before the disablement, according to product rules.
• Klarna Support and Compliance teams maintain visibility into the current state for support and investigation purposes.

Acquiring Partners play a critical role in safeguarding the Klarna Network. When a Payment Product on a Partner Account is disabled, the Partner cannot process new transactions with that product, but can still handle completed payments as permitted by the product.

If the Partner is disabled in the Acquiring Partner’s own systems, the Acquiring Partner must immediately disable all associated Payment Product in Klarna to reflect the correct Partner status. This ensures Klarna maintains reliable visibility into account state and can respond correctly to customer inquiries.

Typical reasons to disable a Payment Product include:

• The Partner is considered fraudulent
• The Partner does not comply with regulations or Klarna’s policies
• The Partner has voluntarily offboarded from the Acquiring Partner
• The Partner account is compromised (for example, an account takeover)

To disable a Payment Product, use the disableAccountPaymentProductById operation. You must include a reason parameter:

You can also provide an optional reason_details field to add additional context about the disablement (for example, a short reference or case identifier).
Example payload:

{
  "reason": "FRAUD",
  "reason_details": "Fraudulent activity detected"
}

To restore a Payment Product that was previously disabled by an Acquiring Partner, use the enableAccountPaymentProductById operation. This reactivation process restores the Partner’s ability to place new Klarna transactions using that product.

Use this operation when:

• A Partner is reinstated in the Acquiring Partner’s systems
• An initial fraud concern is resolved or confirmed to be a false positive
• The Partner has changed their processes and is now compliant with relevant regulations and Klarna policies

In addition to actions taken by Acquiring Partners, Klarna may disable Payment Product based on its own fraud, risk, or compliance assessments.

When Klarna disables a Product or account:

• The state change is controlled by Klarna systems and internal processes.
• The Payment Product cannot be re-enabled via enableAccountPaymentProductById.
• Any reactivation requires coordination with Klarna, typically via Compliance or Support channels, as described in Compliance Decisions and Payments on restricted businesses.

Acquiring Partners should treat Klarna-driven disablement as authoritative and adjust their internal Partner status to match.