Risk Program
Review Risk Program entry reasons, Minor and Major Breach criteria, response deadlines, monthly fees, and exit conditions
The Risk Program for Partners addresses fraudulent Partners and Partners that fail to comply with Partner Rules under Klarna Network Rules.
Calculation
Fraudulent partners
Fraudulent Partners are Partners that attempt to misrepresent themselves or the goods that they are selling. This includes but is not limited to reasons such as:
| Reason | Description |
|---|---|
| Unfulfilled orders | Partner is not sending goods or is sending incorrect or faulty goods. |
| Counterfeit goods | Partner is selling counterfeit goods. |
| Collusion fraud | Partner is placing orders in its own sales channels using stolen credentials or hijacked accounts. |
| Self-lending | Partner or close associates with a shared financial interest are placing orders in their own sales channels. |
| Identity theft | Partner has used stolen or synthetic information when creating an account with the Acquiring Partner. |
Non-compliance reasons
Partners that fail to comply with requirements as defined in the Partner Rules may enter the Partner Risk Program. Such non-compliance includes but is not limited to:
| Reason | Description |
|---|---|
| Non-adherence to Prohibited and Restricted Segments | Segment and business restrictions, including prohibited jurisdictions, illegal practices (for example, misleading practices, pyramid schemes, counterfeit goods), sanctioned goods or services, gambling, adult content, and other high-risk business types (for example, crypto, financial services, weapons). Also includes failure to comply with applicable laws or share required Supplementary Purchase Data. |
| Non-adherence to Website Requirements | Information and general requirements surrounding Partner websites, such as maintaining a working, non-redirecting website with a live URL, displaying contact details for customer service, clearly publishing terms and conditions (return policy, shipping policy, delivery time), and making the return address and return process visible. |
| Fake customer reviews and ratings | Restrictions covering presentation of Customer reviews, ratings, and product descriptions, prohibiting fabricated reviews, manipulated feedback, or misleading claims about product or service quality. |
| Non-adherence to dispute obligations | Partner obligations with respect to disputes handling, including promptly resolving Disputes, processing refunds, providing valid evidence when contesting a Dispute, proper order capture timing for goods or services, keeping proof-of-delivery records, not negotiating discounts during a Dispute, and complying with Klarna’s instructions in cases of suspected fraud. |
| Non-adherence to partner responsibilities | Other Partner responsibilities, such as marketing and branding compliance, VAT or tax obligations, not imposing fees or discriminating against Klarna Payment Services, not misusing Klarna data, and providing accurate purchase, shipping, and customer information. |
Criteria
Minor breaches of non-compliance categories represent non-material deviations from Partner obligations under the Partner Rules. Examples include:
- Unintentional actions such as failing to present clear and transparent terms and conditions to Customers.
- Marketing of Klarna with non-approved materials or heavily modified pre-approved materials.
- Non-intentional misuse of Klarna's services, such as incorrect usage of the authorization capability.
Major breaches of non-compliance categories represent material deviations from Partner obligations under the Partner Rules that result from a Partner’s illegal activity or fraudulent behavior as reasonably determined by Klarna. Examples include:
- Engaging in illegal activities, such as selling prohibited items or violating applicable laws and regulations.
- Systematically breaching Klarna Network Rules, such as consistently failing to respond to Klarna's inquiries or not processing orders and returns as required.
- Not providing any terms and conditions to Customers, disabling the Partner website, or redirecting the website to an unauthorized third party.
Implications
- The Partner’s dispute response deadline is reduced to 7 days across all applicable Dispute categories.
- Solidgate reserves the right to charge the Partner a monthly fee.
- The Partner’s dispute response deadline is reduced to 7 days across all applicable Dispute categories.
- An additional type of Disputes, Non-compliance (Risk Program) Disputes, may be issued. This type of dispute is assigned when the Customer has not successfully disputed the transaction under another Dispute Type and where Klarna has identified that the Partner has entered the Risk Program and is in Major Breach.
- Solidgate reserves the right to charge the Partner a monthly fee.
Exit
The Partner exits the Risk Program when all identified breaches are remediated.
Solidgate can challenge a Major Breach decision once, no later than seven (7) calendar days after Klarna’s notification.
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