Klarna allows your customers to pay now or pay later, while ensuring you receive your payment when fulfilling an order.

This article discusses managing payments using the Klarna app. 

Setting up the Klarna app

Download the Klarna Payments (KP EU) plugin in the Lightspeed back office:

1. Sign in to Lightspeed eCom (C-Series)
2. Navigate to Apps > App store and select Klarna Payments (KP EU)
3. Confirm the download by clicking Grant access.

Create your Klarna API credentials

If testing is required, we recommend creating your API credentials in the playground merchant portal and using them to generate several test transactions before creating production API credentials.

To create production API credentials:

1. From the Klarna merchant portal, navigate to Settings > Klarna API Credentials.
   
2. Select Generate new Klarna API credentials.
   
3. Copy the Username (UID) and Password generated.
   

Enter your Klarna API credentials in Lightspeed eCom:

1. In Lightspeed eCom, navigate to Apps > Purchased apps and select Klarna App Settings.
   
2. Enter the Username (UID) and Password you generated in the relevant fields.
   
3. Select the Environment (Product or Playground) from the drop-down menu
   
4. Select Submit to finish.

Processing a return with Klarna

When a return is received, a credit invoice needs to be created. 

1. In Lightspeed eCom, navigate to Orders and locate the order that is being returned.
   
2. Under Payments, select Add a credit invoice.
   
3. Enter the quantity and value information, and select Add.
   

Once created, the credit invoice will be visible under Payments for the order. A refund will be created automatically in Klarna for the amount entered for the credit invoice. When the refund has been processed, the credit invoice status will be updated to paid.

Canceling an order with Klarna

Canceling an order is permanent and cannot be reverted. This option should not be used unless certain that an order is no longer required.

To cancel an order:

1. In Lightspeed eCom, navigate to Orders and locate the order to be cancelled.
   
2. Select Cancel order.
   
3. Confirm the cancellation by selecting Cancel this order.
   

When the order is canceled, the full order amount including shipping fees will be refunded to the customer.