Klarna Pay Later in 4 Instalments Terms

How it works

Use your own valid debit or credit card to pay (no prepaid cards).

You must be 18 years old and capable of entering into a legally binding contract.

The first payment is charged when the merchant confirms your order (usually the shipping date), the next 3 payments are automatically charged every 2 weeks after that.

There are no interest charges with Pay later in 4 instalments, and no fees when you follow your automatic payment schedule. If you do not make a payment when due, after any applicable slack period, we may charge late fees. Any missed instalments, including any added late fees, will be rolled over to the next scheduled Due Date. We may separately charge merchant services fees to merchants you make a purchase from.

If you cancel your purchase or return your goods we will automatically waive the amount you owe us (as soon as this has been confirmed by the merchant). If you already paid us for a refunded order, we will refund the amount you paid back to you.

If you have questions about the quality or shipping of your order, please contact the merchant where you made the purchase.

The issuer of your card may charge interest or fees under your agreement with them. If you have any questions about those charges contact your card issuer.

Complete terms

The following payment option terms (“Payment Option Terms”) apply between Klarna New Zealand Limited ("Klarna," we," or "us") and the user of this payment option ("you"). In addition to these Payment Option Terms, your use of the Klarna Services are governed by the Klarna Shopping Service and the Klarna Privacy Policy.

Please read these Payment Option Terms carefully. If you do not agree to these terms, you must not use the Klarna Services.

If you are offered to Pay later in 4 instalments, you have the option to pay for your purchase with a credit or debit card in four (4) payments. You will make your payments directly to Klarna using your card. There is no cost to use this service, however the issuer of your card may charge interest or other fees under the terms of your card agreement. It is at our discretion whether you can pay with this Payment Option.

Accepted Cards: We may limit the types of cards we accept at our discretion. If a type of card is not accepted you will be notified before the purchase is completed. Most valid credit and debit cards that are not scheduled to expire in the near future are accepted. We do not accept prepaid cards. If we accept a card we will authorize the card for 1/4 of the order total. This amount will not be charged until the merchant confirms the order, but your card issuer may restrict access to the authorized amount while pending.

Due Date: When using Pay later in 4 instalments, your first payment will be charged once your order is confirmed by the merchant. This typically occurs when the merchant ships the goods but could also happen at the time of order placement. Three (3) subsequent payments will be due every 14 days after the first payment is charged to your card. Future payments are automatically charged to your card on the Due Date.

In the event the merchant does not charge for your entire order at the same time, we will create a separate Pay later in 4 instalments order for each merchant charge. Each of these order parts will have its own Due Date depending on when the merchant confirms that part of your order. This situation may be common where a merchant does not ship all the items from your order at the same time, and makes a new charge for each shipment. This means that the times and amounts of payments you need to make can be different from the information you receive at the time you confirm your purchase. 

Effective date for disclosure purposes: For the purposes of disclosure under the Credit Contracts and Consumer Finance Act 2003, the effective date of the disclosure information that we provide to you is the date that you confirm your purchase and we accept your card.

Initial Unpaid Balance: The initial unpaid balance is the amount you’ll owe us at the effective date.  The initial unpaid balance will be either:

• the amount of the three (3) subsequent payments added together – if the first payment is charged to your card on the date that you confirm your purchase OR

• the total amount of your order – if the first payment is charged to your card after that date that you confirm your purchase.

You can see the total amount of your order and the amount of each payment in the app before you confirm your purchase.  This information is also sent to you in an email after you confirm your purchase.

Total advance: The total amount of the advance that we will make in relation to any part of your order is the amount of the three (3) subsequent payments added together.  This is the amount you owe us after the first payment (for any part of your order) is charged to your card.

Payments: You can see the amount of each payment you need to make and the date you need to pay it in the app before you confirm your purchase.  Information about the payments you need to make is also sent to you in an email after you confirm your purchase. 

Cancellation: You can cancel your agreement at any time by paying the full amount of all remaining payments to us. We will not charge you for doing this.  

You can always pay any remaining payments at any time before the Due Date of that payment and we will not charge you for doing so.

If you cancel your purchase: If you cancel your purchase, and the merchant confirms this to us, we will cancel any remaining payments and pay back to your card any amounts we have already charged to your card.

Late Payment: If we are unable to charge your selected payment method for the amount due on your Due Date we will send you a notification and provide you a courtesy two to seven business day slack period so that you can update your payment method or ensure enough funds are available on your selected card. If you update your card, we will attempt to collect the late payment immediately. Otherwise we will attempt to charge your original card again after the two to seven-day period. It is important that you ensure enough funds are available to complete your payment on the Due Date.

You authorize us to attempt to collect a failed payment at any point after 2 days, using any payment method we have on file for you.

Late Fee: If you fail to make a payment by the end of the courtesy slack period you will be in default, and in addition to other right we have (see “Default” section below), we may charge you a late fee amounting to the following; i) zero (0) NZD per late instalment if the total order value is up to 24.99 NZD; ii) two (2) NZD per late instalment if the total order value is between 25 and 59.99 NZD, iii) two and sixty six cents (2.66) NZD per late instalment if the total order value equals 60 NZD or above. If you fail to make your payments you may be unable to use the service in the future. We may continue to attempt to collect overdue and currently due payments on subsequent Due Dates, or invoice you separately for the unpaid total.

Late instalment fee table in NZD

Returns: Any returns or refunds credited to your purchase will reduce your outstanding balance. You will need to continue to make your previously disclosed payments at scheduled Due Dates until your balance is paid in full. If you have a credit balance you authorize us to credit the balance back to your card, or any other card we have on file for you.

Default: You will be in default if you: (a) fail to make any payment by Due Date after any applicable slack period(s); (b) become the subject of insolvency or bankruptcy proceedings; (c) supply materially false, misleading, or incorrect information to us; or (d) violate or are unwilling to comply with any material provision in the Payment Option Terms.

If you are in default Klarna may: (a) charge the outstanding balance, including late fees, on your Pay later in 4 instalments purchase after notification, using any card we have on file for you or by a separate invoice; (b) employ a debt collection agency to receive payment and you will have to pay all reasonable costs (including attorney’s fees) incurred by Klarna and/or the debt collection agency; and (c) report default information to credit reporting agencies.

Hardship: If you experience illness, injury, loss of employment, the end of a relationship, or other circumstance that means you are unable reasonably to meet your repayment obligations to us you may be able to apply to us to make changes to your repayment obligations.  We may be able to extend the due dates for your payment obligations.

Please contact us at customerservice@klarna.co.nz for information about how you can make this application and the other details that we’ll need from you. There is also more information on our website.

In all other situations where you are unable to pay us on time and you find yourself in financial hardship, please contact us at customerservice@klarna.co.nz 

Dealing with our rights and obligations: We may assign or novate to any person or entity or otherwise deal in any manner with any of our rights, remedies, powers, duties, obligations or interests under this agreement and you consent to us assigning or novating this agreement, in particular, where we novate this agreement you consent to the assumption of liabilities under this agreement by the relevant new party and the release of obligations under this agreement of Klarna.

Credit Report Access, Identity check and Reporting: Klarna will verify your identity when you apply to utilize this Payment Option. Identity verification is done in order to comply with anti-money laundering and counter-terrorist financing requirements and to prevent fraud. You agree to provide Klarna with necessary information and documentation requested to verify your identity and discharge our obligations. We will also verify information you have provided against a third party database. When you apply for this Payment Option, we may order a credit report from a credit reporting agency or third party database who will supply us with credit information about you. From time to time we may also request updates about your credit history from a credit reporting agency or third party database for the purpose of assessing whether to continue to provide you with this Payment Option. We may also validate your card and request authorization from your card issuer. In this case there will be no entry shown on your credit file for these payments.

We may report information about your order and payment history to credit reporting agencies and debt collection agencies. Late payments, missed payments, or other defaults on your purchase may be reflected in your credit report and could impact your credit score. Credit reporting agencies will store this information in their database and may share it with their other customers as part of their credit reporting services.

Storing Card Details: You authorize Klarna to store your card details in our systems. We will use this information to authorize future charges under these Payment Option Terms. Unless you opt out, we may also use this information to conveniently prefill your card details for future purchases. You may manage your cards and details online. If your card details change between your initial purchase and final payment, you agree to notify Klarna of your updated card information. You authorize Klarna to collect updated card information directly from the card issuer, and you agree that we may use this updated information in our system.

Card Transactions: You authorize Klarna to initiate preauthorized withdrawals from your card. The amount of each withdrawal is disclosed during the creation of your order. You agree we may initiate withdrawals in the amounts listed, or less, in the event that part of your order is returned or not fully captured. Your final payment schedule will be emailed to you, and available through the Klarna App, when the merchant confirms your order. If you would like to cancel preauthorized withdrawals you may change your payment card or contact your financial institution. You agree these terms will serve as your copy of your authorization for Klarna to initiate preauthorized withdrawals. We will provide notice within two (2) days after each payment confirming that you have paid the amount listed in your payment schedule (or less, in the event part of the order is returned or not fully captured).

Our use of your personal information

Klarna collects, handles, uses, stores and discloses your personal information in order to carry out our obligations under these Payment Option Terms and for the additional purposes set out in our Privacy Policy. Klarna handles personal information it collects and holds about you in accordance with its Privacy Policy, which is available here and on our website and forms part of these Payment Option Terms. For example, we may use your personal information to identify you and perform customer analysis, credit assessments, marketing and business development. We may also disclose your personal information to selected partners (such as credit reporting agencies), which may be established outside of New Zealand. In the Privacy Policy there is more information about our handling of your personal information, including which countries we may transfer your personal information to, your rights in regards to your personal information, how you may contact us with questions about privacy or make a complaint about privacy and what to do if you are not satisfied with the outcome.

Notices and communication

These Payment Option Terms, notices or other communication from Klarna will be provided to you electronically. You can send any notices or other communications to us electronically to customerservice@klarna.co.nz. 

Please contact customerservice@klarna.co.nz for any questions regarding notices and communication.

You agree any information we need to provide to you as disclosure under the Credit Contracts and Consumer Finance Act 2003 can be provided to you electronically using any email address you have given us.  This information can also be provided in any other way that is permitted under the Credit Contracts and Consumer Finance Act 2003. 

Klarna

Klarna New Zealand Limited, NZBN 9429048441094, PO Box 2219, Auckland 1140.

Registered office address: Tomkins Wake, Level 17, 88 Shortland Street, Auckland 1010. 

Klarna New Zealand Limited (trading as ‘Klarna’) is registered on the register of financial service providers – number FSP778798. 

New Zealand. Klarna Customer Service can be contacted through the website provided here.

Complaints

For complaints regarding the Klarna Services, the information provided on

https://www.klarna.com/nz/ applies. If you have a complaint towards Klarna, you can submit your complaint through the Klarna website (klarna.com/nz), or via email to service@klarna.co.nz. We will try to solve your complaint as soon as possible.

Klarna is a member of the Financial Services Complaints Limited (FSCL) dispute resolution service. If you are not satisfied with how Klarna handled your complaint, you can always contact FSCL using the contact details below;

http://www.fscl.org.nz
Email; info@fscl.org.nz 

Phone; 0800 347 257

Postal address; PO Box 5697, Wellington 6140 

General

If a provision of these Payment Option Terms is invalid or unenforceable, it may be severed from these Payment Option Terms and the remaining provisions of these Payment Option Terms continue in force.

You must not assign or transfer your rights under these Payment Options Terms without our prior written consent (which may be given or withheld at our [absolute discretion).