Merchant Guide: Transitioning to Klarna’s new Disputes Flow

August 31, 2026 16:13

Klarna is updating its dispute infrastructure from November 1st 2026. These changes will align Klarna's process more with global card network standards, while reducing unnecessary noise and giving you more time to respond to actionable dispute states.

To make this transition as seamless as possible, a tiered migration model has been designed. You will retain the familiar Request for Information (RFI) defense workflow, but key operational changes, specifically around the Dispute Notification, Chargeback timing, and evidence file formats require your attention.

What Is Changing from November 1st 2026?

Focus Area	Current Dispute Process	New Dispute Process
Dispute Notification Phase	Dispute Notification is sent prior to the Request For Information (RFI).	This notification will be removed. You go straight to the RFI defense stage.
RFI Defense Period	You need to respond to a RFI within 14 days*.	You will have 21 days* to respond to a RFI.
Evidence Files	PDFs and Images accepted (No file size limit).	PDF files only (Strict 7 MB maximum limit).

* Defense periods can vary according to the Reason Code.

What Is Changing from March 1st 2027?

Focus Area	Current Dispute Process	New Dispute Process
Chargeback + Fees Settlement Timing	A Chargeback + Fees are debited only after you lose the dispute.	A Chargeback + Fees are debited immediately when the dispute starts.
Merchant Wins	No financial adjustment needed (funds never left).	Funds are returned via a Chargeback Reversal.
Dispute Fee	Dispute fee charged at time of Chargeback. If the merchant wins the chargeback, no fee is charged.	Dispute fee charged during the RFI stage. The fee will not be reimbursed.

Detailed Financial Impact & Money Flow

The most significant change to the dispute flow is when the disputed funds are debited from your account.

Money Flow Stage-by-Stage:

Dispute Started: The disputed amount plus the standard Klarna dispute fee is charged back immediately. Unlike the previous Klarna dispute process, you will no longer hold the funds while the dispute is under review.
Outcome — Merchant Loses: The chargeback that was applied at the start remains in place. No second debit occurs.
Outcome — Merchant Wins: Klarna issues a Chargeback Reversal, crediting the disputed amount back to your account. The Fee will not be returned.

File Submission & Evidence Requirements

When defending a dispute, your team or automated integration must comply with stricter upload requirements:

Accepted File Formats: PDF only. Image files (.png, .jpg, etc.) will no longer be accepted.
Maximum File Size: 7 MB limit. File uploads exceeding 7 MB will be rejected.

Defense Period by Reason Code

Dispute reason codes displayed to merchants will remain unchanged. However, defense periods will be updated, most notably extending from 14 to 21 days for the majority of disputes. The table below provides a complete overview of reason codes effective November 1, 2026, along with their applicable defense periods and any exceptions.

Reason Code Mapping Table

Current Reason Codes	Defense Period
good_not_received	21 days
faulty_goods	21 days
return	21 days
already_paid	21 days
incorrect_invoice	21 days
unauthorized_purchase	7 days
high_risk_order	96 hours
pandemic_impact	No longer exists

What Is NOT Changing (and What Isn't Included)

Single-Stage Defense: You continue to defend cases using the familiar RFI workflow. You do not need to manage complex multi-stage disputes.
No Pre-Arbitration or Arbitration: Multi-stage appeals (and the associated risk of fees exceeding €600) are not exposed.
Reason Codes: Dispute reason codes displayed to merchants will remain unchanged.

Action Plan for Merchants

Adjust Notification & Workflow Logic: Update your internal tools to account for the removal of the pre-dispute Notification of Dispute stage and prepare to handle RFIs immediately upon receipt.
Correct Evidence Formatting: Ensure only single PDF files under 7 MB are uploaded as defense documents.
Update Accounting & Reconciliation Rules: Modify your financial reporting tools to expect immediate fund debits at dispute creation, followed by Chargeback Reversals for won cases.