How to Add Klarna Payments to Your Squarespace Site
TL;DR:
- You need a Squarespace Payments account to offer Klarna as a payment option
- UK businesses can sell across the EEA, UK, and Switzerland, but other countries can only sell domestically
- Enable Klarna through Settings > Accept Credit Cards and More > Payment Methods
- Klarna offers four payment types: installments, financing, pay later, and pay now
- Transaction fees are 5.49% + $0.30 per transaction (varies by country)
- Not available for subscriptions, donations, digital products, or member content
Klarna gives your customers flexible payment options that can boost conversion rates. Here's how to set it up and what you need to know about managing Klarna payments on your Squarespace site.
Who Can Use Klarna on Squarespace?
Klarna is only available if you have a Squarespace Payments account. You can't add it as a standalone payment processor.
The geographical restrictions are fairly strict. If your business operates outside the UK, you can only sell to customers in your own country using your local currency. UK-based businesses have more flexibility and can sell across the EEA, UK, and Switzerland, but the currency must match the customer's location.
Setting Up Klarna
Getting Klarna running is straightforward:
- Head to Settings in your Squarespace admin
- Click 'Accept Credit Cards and More'
- Select 'Manage Settings'
- Go to the 'Payment Methods' tab
- Toggle Klarna on under the 'Installments' section
Once enabled, customers will see Klarna as an option during checkout.
Payment Options Klarna Provides
Klarna offers four different payment methods:
Installments split the total into three or four interest-free payments. This is the most popular option.
Financing allows customers to pay over up to 36 months, though this may include interest charges.
Pay Later gives customers 30 days to complete their payment after purchase.
Pay Now works like a standard debit or credit card transaction but processes through Klarna.
Managing Payments and Disputes
When a customer pays through Klarna, the funds (minus fees) transfer to your Squarespace account as normal. If a Klarna transaction fails, it gets automatically cancelled within 24 hours and the customer receives a notification.
Klarna provides fraud protection for disputes, but only if you follow their shipping requirements. Make sure your shipping practices align with Klarna's policies to get this protection.
You can process full or partial refunds within 180 days of the transaction. Klarna automatically cancels any future scheduled payments when you issue a refund.
FAQs
What does Klarna cost?
The transaction fee is 5.49% + $0.30 per transaction, though this varies slightly by country. This is higher than standard card processing fees.
Can I use Klarna for all my products?
No. Klarna doesn't work with subscriptions, donations, digital products, or monetized content like member areas.
How do refunds work with Klarna?
You process refunds the same way as other payments through your Squarespace admin. Klarna handles cancelling any remaining installment payments automatically.
Do I need to do anything special for shipping?
Yes. Follow Klarna's shipping requirements to maintain fraud protection. This typically means using tracked shipping and meeting delivery timeframes.
Jargon Buster
Klarna Installments: Payment method that splits purchases into smaller, interest-free payments over time.
Presentment Currency: The currency customers get charged in, which should match their country's standard currency.
Dispute Management: The process for handling customer complaints or payment challenges.
Wrap-up
Adding Klarna to your Squarespace site can make purchasing easier for customers, especially for higher-value items. The setup is simple, but remember the higher transaction fees and geographical restrictions. Make sure you understand Klarna's shipping requirements to keep your fraud protection active.
Ready to offer more flexible payment options? Join Pixelhaze Academy for more Squarespace payment and ecommerce guides.