A customer returns a product. Klarna refunds them.
You refund the customer — but Klarna keeps its fee.
For merchants with 10−20% return rates, this becomes a major margin sink.
Why Use Klarna at All?
Despite high fees, Klarna still offers value
Attracts younger shoppers who prefer flexible payments
Improves conversion rates through brand trust and familiarity
Klarna app exposure gives you extra traffic and visibility
Use it as a conversion tool — not your default.
Why Use Klarna at All?
Despite high fees, Klarna still offers value
Attracts younger shoppers who prefer flexible payments
Improves conversion rates through brand trust and familiarity
Klarna app exposure gives you extra traffic and visibility
Use it as a conversion tool — not your default.
Klarna Strategy Tips for UK Merchants
1.
Limit Klarna to orders over £100 to reduce fee impact
2.
Negotiate lower Klarna rates if you’re high volume
3.
Clearly label Klarna as a premium method
4.
Audit your Klarna fees monthly in the Klarna Merchant Portal
5.
Add Shopify Payments or Pay by Bank as your default checkout options
Where to Check Klarna Fees for Your Store
Shopify Admin → Settings → Payments → Klarna
Klarna Merchant Portal → Reporting section
Contact Klarna UK directly for contract-specific rates
Final Thoughts
Klarna gives UK customers flexibility — but at a real cost to merchants. With stacked fees, payout delays, and refund penalties, Klarna should be treated as a conversion tool, not your default checkout method.
To protect profit in 2025
Use Klarna strategically
Offer low-cost alternatives like Pay by Bank
Build checkout flows that serve both conversion and cost-efficiency
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Most of my customers are UK-based, and WallidPay supports all major banks. It’s made the checkout process faster and improved my conversion rate. Plus, I’m paying way less in fees compared to Stripe.
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I set up WallidPay with my store in under an hour. It syncs perfectly with Shopify, and payments hit my account immediately. Their support team is responsive and super helpful. Couldn’t ask for more.
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WallidPay is one of those apps that you don’t realize you need until you try it. It protects our store, gives customers peace of mind, and doesn’t interrupt the buying experience. It checks all the boxes—and then some.
Before WallidPay, our checkout felt incomplete. This app made a huge difference by adding structure and verification. It just feels more legitimate and polished now. And because it's automated, I don’t have to babysit orders anymore.
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The addition of WallidPay instantly made our store feel more professional. The clean design and seamless integration make it look like a native feature rather than a third-party app. Our checkout page feels more secure and modern now. It’s a small touch, but it makes a big difference when you’re trying to build customer trust.
WallidPay was set up in under 10 minutes and has been running perfectly ever since. I really appreciate how easy it was to get started—no tutorials, no long documents, just straight to the point. It's helped build trust with our customers, and we’ve seen fewer chargebacks since. It’s clear that this app was made by people who understand the needs of eCommerce stores.
FAQ Klarna vs Pay-by-Bank on Shopify
Klarna charges 4.99% + £0.20 per transaction for “Pay Over Time” and 2.9% + £0.20 for “Pay Later.” Shopify surcharges (0.5%–2%), non-refundable fees, and delayed payouts add up. Total fees on a £100 order can exceed £6.32.
Yes. Pay-by-Bank averages ~0.7% per transaction, includes full refunds, and has no chargebacks.
No. Klarna is best used as a conversion tool for high-ticket orders, not your default option.
Wallid’s Pay-by-Bank app integrates directly with Shopify checkout, enabling instant bank payments, significantly lower transaction fees, and zero chargebacks.
Wallid’s Pay-by-Bank Express Checkout delivers a fast, frictionless experience by connecting directly to customers’ bank accounts — increasing conversion rates while lowering fees