Klarna Pay Later in 4 Agreement

Initial disclosure statement

This Initial Disclosure Statement is part of your Klarna Pay Later in 4 Agreement. All amounts referenced in this Statement are in Canadian currency. 

How it works

• Use your own valid debit or credit card, or other accepted payment method, to pay (no prepaid cards).

• The initial payment is charged when the merchant completes your order (this is usually the shipping date for online orders).

• The next 3 payments are automatically charged every 2 weeks after your first payment. A payment schedule containing the amount for each charge, as well as the date for when it will be charged, will be disclosed to you once the merchant completes your order. Once we receive your final installment payment, this Agreement will be completed.  

• There are no interest charges and no fees with Pay later in 4 installments.

• If your Installment Payment is retuned or refused due to insufficient funds or for any other reasons, we will charge you the NSF Fee set out in the Initial Disclosure Statement for the dishonoured payment.

• If you return your goods we will automatically reduce the amount you owe us. If you already paid us for a refunded order, we will refund the balance back to your original payment method.

• If you have questions about the quality or shipping of your order, please contact the merchant where you made the purchase.

• The issuer of your payment method may charge interest or fees under your agreement with them. If you have any questions about those charges contact your payment method provider.

Terms and Conditions

The following terms and conditions represent an agreement between the lender, Klarna Canada Limited, located at 1 University Ave, 3rd Floor Toronto, ON M5J 2P1, Canada ("Klarna," we," or "us") and the user of this payment option ("you" as the borrower, under the name and address provided when you agreed to use this payment option), entered into as of the date you agree to use this payment option for your purchase. In addition to these terms and conditions, your use of this payment option is governed by the Klarna Shopping Service and the Klarna Privacy Policy which are incorporated into and made part of these terms and conditions (collectively, the “Agreement”). In the event of a conflict between the terms in this Agreement and the Klarna Service Terms, Klarna’s Privacy Policy or any other document referenced and incorporated by reference herein, this Agreement shall govern but only with respect to the subject matter of such conflicting terms.

If you do not agree to the terms of the Agreement, you may not use this payment option.

This payment option is provided, and funds made available, by Klarna. When you elect to use this payment option, we will present you with the applicable payment terms, including:

• The amount of your Initial Payment. The Initial Payment is the first of four payments and is due immediately once the merchant confirms your order. 

• The amount of each subsequent Installment Payment. The Installment Payments represent the amount financed and repaid in three installments due every two weeks after the Initial Payment, for a loan term of six weeks from the Initial Payment. 

• The Total Purchase Amount. This equals the Initial Payment (which is due immediately) plus each subsequent Installment Payment, and represents the total amount you will have paid when you have made all scheduled payments.

By accepting to use this payment option, you acknowledge and agree to these payment terms as set out in the Initial Disclosure Statement which shall be incorporated by reference into this Agreement. Your final payment schedule will be emailed to you, and available through the Klarna App, once the merchant confirms your order.  

Promise to Pay: By using this payment option, you are instructing us to send the Total Purchase Amount to the designated merchant as payment for your purchase. You further promise to pay Klarna the Total Purchase Amount in accordance with the payment terms, including repayment of the Initial Payment and each Installment Payment on their Due Dates. 

No Interest or Other Finance Charges:  This is a 0% APR loan. There is no interest or other finance charges due on this payment option. 

Payment Methods: We may limit the types of payment methods we accept at our discretion. If a type of payment method, such as a particular credit or debit card, is not accepted, you will be notified before the purchase is completed. Most valid credit and debit cards that are not scheduled to expire in the near future are accepted. We do not accept prepaid cards. You may change your payment method at any time, and if you do, you authorize us to charge your new payment method in accordance with this Agreement.

Initial Payment: You authorize us to charge your payment method for a first Initial Payment, which amount will be disclosed to you at checkout. This amount will not be charged until the merchant confirms the order. This typically occurs when the Merchant ships the goods or provides them to you in the store, but could also happen at the time of order placement. Your card issuer may restrict access to any authorized amount while pending.

Installment Payment Authorization: You authorize us to automatically charge your payment method for each Installment Payment every 14 days (each a “Due Date”) after the Initial Payment is charged to your payment method. You agree these terms will serve as your copy of your authorization for Klarna to automatically charge your payment method, including to initiate preauthorized transfers. We will provide notice within 2 days after each payment confirming that you have paid the Installment Amount due. If any adjustment causes your final Installment Payment to be less than your scheduled Installment Payment amount, we will charge you the lesser amount.

Prepayment: You may prepay part or all of any outstanding Total Purchase Amount at any time. There is no penalty for prepaying any amount owed. Prepaying any portion of your outstanding Total Purchase Amount will not change the amount of any subsequent Installment Payment, unless the remaining Total Purchase Amount is less than your Installment Payment, in which case we will only charge you the remaining Total Purchase Amount on the next Due Date.

Split Orders: In the event the merchant does not confirm your purchase for the entire order amount at the same time (for example, if items from your order ship on different dates), we may create a separate installment schedule for each confirmed amount received from the merchant (each a “Schedule”). Each Schedule will have its own Initial Payment and Installment Payment amounts and Due Dates associated with the confirmed amount; however, the total Initial Payments and Installment Payments paid on all Schedules associated with your purchase will not exceed the Total Purchase Amount. You understand that when a Schedule is created, this Agreement will apply to such Schedule and you agree to the terms of this Agreement with respect to each Schedule.  

Failed Payment: If we are unable to charge your selected payment method for any Installment Payment in full on your Due Date, it will be considered a Failed Payment. If your Failed Payment is refused, returned or otherwise fails as a result of insufficient funds or for any other reason, you will be charged a one-time NSF Fee in the amount set out in the Initial Disclosure Statement. You agree to pay the NSF Fee set out in the Initial Disclosure Statement up to a maximum of one-time for each Installment Payment that is returned unpaid for any reason and acknowledge that any such amount will be added to the next Installment Payment. We will notify you if a payment fails and we will not re-submit the payment for processing to collect the Failed Payment for at least 2 days to ensure your payment method is up to date. You authorize us to attempt to collect the Failed Payment at any point after 2 days, using any payment method we have on file for you. Due Dates for subsequent Installment Payments will remain unchanged. We may continue to attempt to collect overdue and currently due payments on subsequent Due Dates, or we may invoice you separately for any unpaid amount.  

Returns, refunds and cancellations: You acknowledge and agree that Klarna is not responsible for processing refunds or merchandise exchanges for any goods or services you purchase from a merchant. We will not be responsible for resolving any issues you may have with a merchant or liable if a merchant does not give you a credit, imposes any additional charges or takes any other action. Any returns or refunds credited to your purchase will reduce your outstanding balance, but do not count as payments. You will need to continue to make your previously disclosed payments at scheduled Due Dates until your balance is paid in full. If you have a credit balance you authorize us to credit the balance back to (a) the payment method used for this payment option; (b) any other card we have on file for you; (c) by check to your mailing address on file; or (d) by direct deposit to any of your bank accounts on file or stated on any check you presented to us for payment.

If your order is cancelled we will refund any amounts you have paid and we will cancel any future payments related to that order. The merchant providing the ordered goods/services will not be obliged to deliver the goods or provide the service in such case. 

Default: Except where prohibited by law, you will be in default if you: (a) fail to make any payment by a Due Date; (b) become the subject of insolvency or bankruptcy proceedings; (c) supply false, misleading, or incorrect information to us; (d) a payment is returned to us by your bank; or (e) violate or are unwilling to comply with any provision in this Agreement (each a “Default”).

If you are in Default Klarna may: (i) charge the outstanding balance (or any lesser amount we deem appropriate) on your Pay later in 4 purchase immediately, using any card we have on file for you or by a separate invoice, except where such default is due to insolvency, bankruptcy, or the provision of false, misleading or incorrect information; and (ii) employ a debt collection agency to collect payment. If you are in Default Klarna may prevent you from future use of any Klarna service. 

Storing Payment Method Details: You authorize us to store your payment method details in our systems. We will use this information to authorize future charges as described in this Agreement. Unless you opt out, we may also use this information to prefill your payment method details for future purchases. You may manage your payment method details online or through the Klarna app. In the event Klarna obtains updated payment method information from your bank, you agree that we may update and use this information in our system.

Transfer/Assignments 

We may transfer, assign or sell this Agreement, and any right under it, to a third party without your prior consent. You agree that we may appoint third party collection agencies to collect any amounts owing to us under this Agreement without your consent. 

Complaints

For complaints, the information provided on https://www.klarna.com/ca/ applies. If you have a complaint towards Klarna, you can submit your complaint through the contact form on Klarna’s website (klarna.com) or via postal mail with the keyword "Complaint” to Klarna’s address.

If you have a complaint arising out of the delivery or quality of the goods or services you have purchased from the merchant, you should contact the merchant for such complaints. Klarna is not responsible for solving such disputes/complaints. 

Applicable law 

This Agreement shall be governed by, and will be construed under and in accordance with, the laws of the province where the Borrower resides (as listed for the Borrower above) and the federal laws of Canada applicable therein, without regard to choice of law principles. 

Severability

If any provision in this Agreement (or any portion thereof) is determined by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect and shall be binding upon the parties and enforceable as though said invalid or unenforceable provision (or portion thereof) was not contained in this Agreement.

Electronic communications

You agree to receive, in electronic form, a copy of this Agreement and any other required disclosures including, but not limited to, the Initial Disclosure Statement and any other notices or information we may be required to send to you from time to time under applicable law. You agree to keep a copy of any electronic communications for your records and future reference. Any notices or other communications will be deemed to be delivered when emailed to your designated email address, as such address may be updated from time to time. You agree to notify us immediately of any changes to your contact information, including your email address which we will use to provide you with notices and other required information. 

Electronic signature 

The parties agree that electronic signatures will have the same legal effect as original (i.e. ink) signatures and that an electronic copy of any signature will be deemed an original and may be used as evidence of execution.

THIS AGREEMENT IS FULLY SUBJECT TO YOUR CONSENT TO ELECTRONIC TRANSACTIONS AND DISCLOSURES PREVIOUSLY PROVIDED.

By accepting this Agreement, you acknowledge having received, read, understood and agree to be bound by this Agreement, including the Initial Disclosure Statement, Payment Schedule and Installment Payment Authorisation.

Agreed; [include consumer name]