Terms and Conditions - Klarna balance

1. Introduction

The core service provided under this Agreement is Klarna balance as described in Section 2. We may also offer additional services and features connected to Klarna balance. Available services and features may be added, changed, or replaced over time, see Section 6.

The availability of the services and features under this Agreement may differ depending on Klarna’s offering available in your country of residence or your individual circumstances. Information about the services offered at any time is provided on the Klarna website https://www.klarna.com/be/.

2. Klarna balance

2.1 What is Klarna balance?

Klarna balance is a service which allows you to set up one account known as your Klarna balance main account - that will be created when you sign up. This account can be used to hold, receive, transfer and use funds within the Klarna ecosystem. You can sign up to Klarna balance through the Klarna App (mobile or web-app), where you can also see and access the funds in your account.

Klarna balance enables you to shop online with Klarna, settle existing debt owed to Klarna, receive cashback or refunds, and pay Klarna fees or similar. It shall be noted that all payments made from Klarna balance are payments made to Klarna and the account as such does not qualify as a payment account or payment instrument under laws such as PSD2.

You will not incur any fees for using Klarna balance, but you may be charged for related Klarna services which will be regulated under separate terms and conditions.

2.2 How to join Klarna balance

You can sign up to Klarna balance via the Klarna App (mobile or web) by selecting the option to create a new Klarna balance. You must have a user account with Klarna through the Klarna App and you must be 18 or older. We will check your identity when you set up Klarna balance, so the name you provide us must be your own legal name. During sign-up, we will ask you to provide details of a bank account that you hold with an institution other than Klarna.

Once you have logged in, we will ask you for a few details about yourself, in order to establish your identity, and after you have submitted these we will consider your application. If your application is successful, we will notify you as soon as possible and you will be bound by this Agreement from the time that we notify you that Klarna balance is live and available for use.

You can then add money to Klarna balance from within the Klarna App.

2.3 How Klarna balance works

After signing up for Klarna balance in accordance with Section 2.2, you will need to add money to your Klarna balance main account by making a payment from an existing funding source, which can be any combination of:

(a) A bank transfer from an existing bank account in your name

(b) A credit or debit card in your name (but not your Klarna Card)

We may in the future add more ways of depositing money into your Klarna balance main account.

Adding money takes effect immediately depending on your choice of top-up methods. If not instant, it should normally take 1-2 business days for money to appear in your account, although in some circumstances it may take longer.

Your account does not have an overdraft function, which means that the minimum sum available in your account is EUR 0. The maximum sum that you can add to your account is EUR 500,000.

Once you have added money to your Klarna balance main account, you can then:

(a) Keep it in your Klarna balance main account for as long as you like

(b) Withdraw it from your Klarna balance main account whenever you like

(c) Use it to pay off any existing sums that you owe to Klarna, directly from within the Klarna App

(d) Pay for purchases online using Klarna’s Pay Now option

If you choose to use your Klarna balance main account to pay off any existing sums that you owe to Klarna (c), or pay for purchases online using Klarna’s Pay Now option (d), Klarna will debit your Klarna balance main account accordingly.

In addition, your Klarna balance main account will become the first point of entry for incoming funds that you are owed. This means that if you are entitled to a refund or cashback, you will automatically receive these directly into your Klarna balance main account (see Section 2.4 below for more details).

2.4 Using Klarna balance

2.4.1 What you can do with Klarna balance

Once you have set up Klarna balance and added money to your Klarna balance main account, you can use the money in your Klarna balance main account to make purchases online wherever Klarna Pay Now is accepted.

If you wish to withdraw money from your Klarna balance main account, you can make a withdrawal to a bank account in your name. Please note that no cash withdrawals can be made from Klarna balance.

If you are entitled to a refund in connection with a purchase you made with Klarna, for example because you returned a purchase or because of an error, you will receive that refund directly into your Klarna balance main account.

If you are entitled to cashback from an online retailer when shopping with Klarna by virtue of a purchase you made using your Klarna balance main account, you will also receive that cashback directly into your Klarna balance main account. If you are accumulating cashback on eligible Cashback Offers under our Cashback Programme, these will also be credited directly to your Klarna balance main account.

Klarna balance enables you to use other related products and features in accordance with Section 2.3 above.

2.4.2. How do I get information about movements in my Klarna balance?

We will inform you in the Klarna App about any money movement on Klarna balance, using the different channels you have enabled with Klarna. Klarna will regularly provide you with information about your account (such as transactions completed and account balance). Any information we provide you regarding the current status of your account or any other information is based on the available knowledge at the time regarding withdrawals and deposits. You can find out everything you need to know about the money in your account by checking the Klarna App at any time.

3. Your use of Klarna balance

You may only have one Klarna balance, and it is exclusively for personal use (no business purposes).

It is not permitted to use Klarna balance (either directly or indirectly):

• to send money to or receive money from a credit card account for cash withdrawals or

• to purchase items that are directly convertible to cash, such as the acquisition of foreign or virtual (crypto) currencies and travelers cheques; and payments to platforms that offer sales and trading services for real and crypto currencies.

Klarna balance is made available to you alone. If a trustee or administrator is appointed for you, the right of disposition is determined by the decisions and rules that apply to them at any given time.

You must notify us immediately of any changes in your name and address as well as the termination of, or amendment to, any powers of representation granted towards us conferred to any person (in particular a power of attorney).

In addition, further statutory notification and cooperation obligations may apply to you, for example under effective Anti-Money Laundering laws. In particular, you are required to cooperate in case we have any questions, for example concerning your person or the deposits you hold with us.

If this section is violated, we reserve the right to suspend your access to Klarna balance or terminate the Agreement, see Section 8.

4. Deposit guarantee

Your deposits are covered by the Swedish Deposit Guarantee Scheme in accordance with a decision by the Swedish National Debt Office (Riksgälden). In case of Klarna’s insolvency, your eligible deposits would be compensated up to SEK 1,050,000 by the Swedish National Debt Office. You are entitled to compensation equal to the amount of the deposits plus interest accrued up to the date on which the right to compensation arose. The Swedish National Debt Office (Riksgälden) shall make the compensation available within seven (7) business days from the date on which Klarna was declared bankrupt or the Swedish Financial Supervisory Authority (Finansinspektionen) decided that the guarantee should be activated. In addition to this amount, you may be entitled to additional compensation of up to a total of SEK 5,000,000 under conditions specified by Swedish law. If you receive compensation under this paragraph, that compensation will be paid out to the secondary bank account that you gave details of in line with paragraph 2.2 above.

For further information on the Swedish Deposit Guarantee Scheme visit the Swedish National Debt Office’s website: https://www.riksgalden.se/en/.

5. Withdrawal right

You have the right to withdraw from this Agreement within 14 calendar days after conclusion of this Agreement either directly in the Klarna App by closing Klarna balance, or by contacting Klarna’s Customer Service using the contact details set forth in Section 13 without any obligation to provide a reason and without any compensation or penalty.

6. Changes to this Agreement

This Agreement can be amended by us. If we are amending the Agreement in order to introduce new services and such amendments do not affect the terms and conditions of your account, we will inform you of such amendments immediately thereafter and, in any case, we will inform you before you use any such new services.

As to any other amendments to the Agreement, we will give you at least thirty (30) calendar days prior notice through the Klarna App and/or email before any such amendment takes effect.

If you do not accept the change, you have the right to terminate the Agreement without giving any prior notice. Upon termination, you will be responsible for any outstanding balance, interest, and fees that have been incurred, which must be paid in relation to the closure of the respective account(s) (if any). If you do not notify Klarna before the effective date of the new terms that you wish to close the account(s), it will be considered that you have accepted the revised terms.

Klarna reserves the right to immediately change this Agreement if this is called for due to new legislation or authority decisions that affect the account.

7. Klarna’s use of your personal data

Klarna processes your personal data in order to carry out our obligations in this Agreement and for the additional purposes set out in our Privacy Notice (see in Dutch and French). We process your personal data for example to identify you and perform customer analysis, marketing, and business development. We may also transfer your data to selected partners (such as identity and verification bureaus), which may be established outside of the EU/EEA.

8. Termination of Agreement and closure of account(s)

8.1 General rights for you and Klarna

The Agreement becomes effective once you have successfully opened Klarna balance as outlined in Section 2.2 and continues in force until it is terminated by you or us.

You can ask us to close Klarna balance and terminate this Agreement at any time. The easiest way to do this is in the Klarna App or by contacting us on the contact details in Section 13. You will remain liable for all outstanding amounts that you owe to Klarna (including fees) even after this Agreement has been terminated (by you or Klarna). In that scenario, we will provide information to you on how to make payments to us.

Klarna may terminate the Agreement with effect no earlier than thirty (30) calendar days after you have been notified.

8.2 Termination and suspension for cause

Notwithstanding the above provisions, a party may terminate the Agreement with immediate effect if the counterparty has materially breached the Agreement. In this regard, every breach of contract, where correction has not been taken as soon as possible despite a reminder, shall be considered a material breach of contract, including but not limited to, actions in violation with Section 3.

Each party can also terminate the agreement with immediate effect if it is required by applicable laws, government regulations or decisions, or if the other party violates any applicable laws, regulations, agreements, or market practices.

Klarna reserves the right to block your use of an account(s) for objectively justified legal and regulatory reasons relating to security, the suspicion of unauthorized or fraudulent use, a significantly increased risk that you may be unable to fulfill your liability to pay, or if the account(s) is used in breach of this Agreement, or applicable law.

If Klarna suspends your access or terminates the Agreement as described above, will inform you of this as soon as possible.

8.3 Refunds in connection with termination of Agreement and closure of account(s)

In order to close Klarna balance and end this Agreement, any funds must first be transferred to another bank or payment account in your name. You will need to provide Klarna with the necessary information for this transfer. If we do not have a valid source to refund your money to, we will make reasonable efforts to contact you and obtain the required information.

Upon termination of the account, both parties will promptly fulfill all their obligations under this Agreement. However, the relevant parts of the Agreement will continue to apply until both parties have fulfilled all their obligations to each other.

9. Assignment

This Agreement is personal and you cannot transfer any rights or obligations under it to anyone else.

You agree and permit us to merge, reorganize, spin-off, transform or execute any other form of reorganization or restructuring of our company or business and/or transfer or assign all of our rights and obligations under these terms and conditions to any third party.

We may transfer any of our rights or obligations under the Agreement only if such transfer will not have a significant negative effect on your rights under these terms and conditions or we need to do so to ensure compliance with any legal or regulatory requirement, or such transfer results out of the implementation of a reorganization (or a similar process).

In any event, you will be able to withdraw from this Agreement and close Klarna balance upon notification about the assignment, merger, reorganization or any other similar notification

10. Limitation of liability

Klarna shall not be held responsible if you directly or indirectly are unable to utilize your rights and the services provided under this Agreement due to law requirements or regulations, force majeure or other reasons which are outside of Klarna control. Klarna is not liable for indirect damages or losses.

11. Fees and Netting

11.1 Fees

When adding funds to your Klarna balance main account using a credit or debit card, you can make two deposits free of charge. After that, we will charge a fee for each deposit.

As a Klarna customer, you may have been charged fees associated with other Klarna services which are governed by separate terms and conditions.

11.2 Netting

In the event that you owe an outstanding debt or outstanding fees to Klarna under a separately signed agreement with Klarna, and that sum is overdue and we have not been able to recover it under that separate agreement, Klarna has the right, without giving you prior notice, to debit any of your accounts to cover such sums that you owe us at any given moment in time (“Netting”).

Netting will never be made in a manner that would be likely to prejudice your livelihood.

12. Errors

You may only invoke errors relating to an order executed by Klarna or a service under this Agreement if you notify us of the error without undue delay after you have noticed or should have noticed the error.

13. Customer service and complaints

If you have any questions or want to come in contact with us, please contact us using the communication channels at: https://www.klarna.com/be/klantenservice/.

If you have a complaint or towards Klarna, you can submit your complaint through Klarna’s website (www.klarna.com/be) or via postal mail with the keyword "Complaint” to Klarna’s address. If we are unable to resolve your complaint, you may refer your complaint to the Swedish National Board for Consumer Disputes (ARN). Klarna will participate in such proceedings and is obliged to do so under applicable law. More information can be found on ARN’s website: http://www.arn.se. You can submit your complaint in any official language of the European Union through the ODR-platform provided by the European Commission: https://ec.europa.eu/consumers/odr/. The complaint will then be forwarded to ARN. You may also contact ARN by postal mail or personally: Allmänna reklamationsnämnden, Postbox 174, 101 23 Stockholm, Sweden, Visitor Address: Kungsholmstorg 5, Stockholm.

14. Communication

We will communicate with you in Dutch, French or in English, at your choice.

You agree that we will primarily communicate with you via the Klarna App but we may also send communications under or in relation to the Agreement (other than communications that are required by law to be sent in paper form) via email to your e-mail address or via text message to your mobile phone number. You must promptly inform us of any changes to your name, address, email or telephone number and provide any evidence of such changes that we may reasonably require.

To meet our legal and regulatory requirements we might sometimes need to ask for more information about you. You are required to provide this information quickly to avoid disruption to Klarna balance or our services.

15. About Klarna

Klarna Bank AB (publ), with registered office in Sveavägen 46, 111 34 Stockholm, Sweden and registered in the Swedish companies register under number 556737-0431, is a bank and provider of financial services, mainly providing online payment solutions, and as such authorized by the Finansinspektionen (Swedish Financial Supervisory Authority), Box 7821, 10397 Stockholm, under the registration number 41538. Klarna is registered as a cross-border provider of financial services at local supervisory authorities throughout the European Union as well as in Norway, Iceland and Liechtenstein.

16. Governing law and jurisdiction

This Agreement is governed by the laws of Belgium and is subject to the exclusive jurisdiction of the courts of Brussels (Belgium).