> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vortexiq.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Refund Rate, Klarna

> Refund Rate for Klarna stores. Tracked live in Vortex IQ Nerve Centre. How to read it, why it matters, and how to act on it.

**Metrics type:** [Supporting Metrics](/nerve-centre/overview#metrics-types-explained)  •  **Category:** [Payment Gateway](/nerve-centre/connectors#connectors-by-type)

## At a glance

> Percentage of Klarna revenue refunded. Klarna refunds work differently from cards: Klarna handles consumer-side accounting (cancels remaining instalments, refunds paid). Merchant initiates via Klarna API.

|                           |                                                                                                                                              |
| ------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------- |
| **What it counts**        | `SUM(refund.amount) / SUM(captured.amount)` per period, per currency.                                                                        |
| **Healthy**               | Fashion 8-15%, beauty 1-4%, electronics 4-8%.                                                                                                |
| **Klarna refund process** | Merchant API: `POST /ordermanagement/v1/orders/{id}/refunds`. Klarna refunds the customer (paid instalments) and cancels future instalments. |
| **Time window**           | `30D vsP`.                                                                                                                                   |
| **Alert trigger**         | `>10%`.                                                                                                                                      |
| **Sentiment key**         | `gauge_inverse: good<=3, warn>8`                                                                                                             |
| **Roles**                 | owner, finance, operations                                                                                                                   |

## Calculation

Calculated automatically from your Klarna data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.

## Worked example

"Helle Mode" 30 days ending 02 May 26.

| Klarna product    | Volume            | Refunds         | Refund rate |
| ----------------- | ----------------- | --------------- | ----------- |
| Pay in 30 days    | EUR 612,400       | EUR 64,300      | 10.5%       |
| Pay in 4          | EUR 248,300       | EUR 32,200      | 13.0%       |
| Slice it          | EUR 184,200       | EUR 11,000      | 6.0%        |
| **Blended (EUR)** | **EUR 1,044,900** | **EUR 107,500** | **10.3%**   |

What the merchant should notice:

1. **Pay in 4 has higher refund rate (13%).** Customers more likely to "try and return" knowing they can spread payments; classic BNPL return-rate pattern.
2. **Slice it lower (6%).** Long-instalment commitments select for more deliberate purchasers.
3. **Helle Mode's 10.3% is fashion-typical.** Above 15% suggests product quality or sizing issue.
4. **Klarna BNPL refund rates are 2-4pp higher than card-paid for the same merchant.** The "Klarna lift" comes with a return-rate trade-off.

## Sibling cards merchants should reference together

| Card                                                                      | Why pair it                            |
| ------------------------------------------------------------------------- | -------------------------------------- |
| [`kla_refund_volume`](/nerve-centre/kpi-cards/klarna-api/refund-volume)   | Absolute amount.                       |
| [`kla_total_volume`](/nerve-centre/kpi-cards/klarna-api/total-volume)     | Denominator.                           |
| Stripe [`stripe_refund_rate`](/nerve-centre/kpi-cards/stripe/refund-rate) | Card refund rate; usually 2-4pp lower. |

## Reconciling against the vendor's own dashboard

**Where to look:**

[portal.klarna.com](https://portal.klarna.com) → **Refunds** with date filter.

**Why our number may differ:**

| Reason                      | Direction         | Why                                                          |
| --------------------------- | ----------------- | ------------------------------------------------------------ |
| **Time zone**               | Boundary days off | CEST vs UTC.                                                 |
| **Refund attribution date** | Either            | We use issue-date; some Portal views use original-sale-date. |

**Cross-connector reconciliation:**

| Comparison                                                                                    | Expected            | Why                            |
| --------------------------------------------------------------------------------------------- | ------------------- | ------------------------------ |
| `kla_refund_rate` ↔ [`stripe.stripe_refund_rate`](/nerve-centre/kpi-cards/stripe/refund-rate) | Klarna 2-4pp higher | BNPL "try and return" pattern. |

## Known limitations / merchant FAQs

**Why does Klarna refund rate exceed card refund rate?**
BNPL psychology: customers feel less committed, return more freely. The 2-4pp gap is consistent across merchants.

**Customer paid 1 of 4 instalments and returns, what happens?**
Klarna refunds the paid instalment to the customer and cancels remaining ones. Merchant initiates the refund; Klarna handles consumer-side accounting. Merchant gets debited the full original amount (or returned-good amount if partial refund).

**Partial refund supported?**
Yes via API; supports any amount up to original.

**Refund window?**
Up to 28 days post-capture for some products; longer for others. Klarna documents per-product limits.

**Klarna fee on refund, refunded?**
Mostly no. The merchant fee on the original sale is typically not returned (small Klarna refund processing fee added).

**Recurring Klarna subscription, refund single rebill?**
Yes; targets the specific captured rebill.

***

### Tracked live in Vortex IQ Nerve Centre

*Refund Rate* is one of hundreds of KPI pulses Vortex IQ tracks across Klarna and 70+ other ecommerce connectors. Nerve Centre runs the detection layer; Vortex Mind investigates the cause when something moves; Ask Viq lets you interrogate any number in plain English.

[Start for free](https://app.vortexiq.ai/login) or [book a demo](https://www.vortexiq.ai/contact-us) to see this metric running on your own data.