Klarna APM Service

Supplemental Terms – Klarna APM Service

These Supplemental Terms for Klarna APM Service supplement and are to be read together with Verifone’s Standard Terms and Conditions and the Supplemental Terms - Verifone’s APM Platform.

Additional Terms Relating to Use of Klarna’s Payment Services.

       (a)  General.  The Klarna Service is provided (i) with respect to transactions in Europe, by Klara Bank AB (publ), reg. no 556737-0431, a Swedish public limited company, and (ii) with respect to transactions in the United States, by Klarna Inc., a Delaware corporation (as applicable, “Klarna”).  Klarna is an independent third party not affiliated with Verifone.  Klarna’s service enable natural or legal persons (“Customers”) to make a purchase from Merchant using one or more payment models supported by Klarna from time to time (collectively, the “Klarna Services”).  The specific Klarna Services that Merchant may currently offer and the associated service fees (the “Service Fees”) are set forth on Annex 1.

      (b)  Scheme Rules.  Refer to Klarna’s website at www.klarna.com (as may be updated from time to time by Klarna) for information regarding Klarna and its policies and procedures regarding the Klarna Services, including Klarna’s shipping policies, which can be found at https://www.klarna.com/international/shipping-policies/ (for e-commerce transactions) and at https://x.klarnacdn.net/merchant-app/instore-shipping-policy-partner.pdf (for in-store transactions).  Merchant is responsible for using the Klarna services in accordance with the Klarna Scheme Rules, including these Supplemental Terms.

      (c)  Approval of Merchant.  Klarna reserves the right to perform financial and other monitoring activities on you, and unconditionally reserves the right not to provide the Klarna Services to you.  Klarna will not share information regarding you unless explicitly stated in these Supplemental Terms, required by law, or necessary for the provision of the Klarna Services.

      (d)    Initiation and Processing of Klarna Transactions.  Klarna transactions will be initiated and processed as follows:

(i)    Depending on your integration, either (A) the cashier will select Klarna as the desired payment method on the ECR, or (B) Customer will select Klarna as their desired payment method on the Supported Device Model.

(ii)    The Supported Device Model will either present the Customer with a QR or other scannable code, which the Customer will scan using the camera on their web-capable mobile device or, alternatively, allow the Customer to enter his or her mobile phone number which prompts an SMS send-out with a link.

(iii)    The code (or the link in the SMS) will instruct the Customer’s web-enabled mobile device to open Klarna’s hosted-payment page, where the Customer will be prompted to submit information to Klarna pertaining to the Customer’s identity and desired Klarna Service.

(iv)    Klarna will then determine whether to approve or decline the Customer’s transaction and will transmit either the approval or declination to the Supported Device Model via the Verifone APM Platform. Klarna, Verifone, and you may agree on an alternative method of initiating Klarna transactions from time to time, including for e-commerce transactions.

      (e)  Acquisition of Claims.  In connection with the approval of a transaction by Klarna, Verifone will acquire from you the receivable and/or right to receive payment (as applicable in the relevant country or territory) for the amount of the Transaction against the Customer resulting from the approved Transaction (the “Claim”).  The acquisition of the Claim by Verifone will be deemed to occur at the time you activate the Klarna API relating to the sale of goods or services to the Customer. Immediately following Verifone’s acquisition of the Claim, Klarna will acquire the Claim from Verifone and will assume the risk of non-payment by the Customer.  

       (f)  Credit Llimits.  KLARNA WILL, IN ITS SOLE DISCRETION, DECIDE ON APPLICABLE CREDIT LIMITS FOR CUSTOMERS.

       (g)   Module Support.  Klarna aims to support all modules and APIs that Merchants use to connect to the Klarna Services, including those used by Verifone’s APM Platform. However, as technology progresses, Klarna reserves the right to decide, in its sole discretion, which modules and APIs to support, and therefore reserves the right to change the Klarna Services from time to time.

       (h)  Right to Retransfer.  Klarna has the right to retransfer (re-sell) a Claim to Verifone, and Verifone has the right to retransfer the Claim to you in the circumstances described in Section 1(i) (a “Retransfer”, and any Claim(s) Retransferred, a “Retransferred Claim”). Klarna and Verifone do not refund Service Fees charged on Claims that are Retransferred.

       (i)  Claims Subject to Retransfer.

With regards to all Claims, regardless of sales channel:

           (i)  If there are obstacles restricting the pledge or transfer of the Claim (e.g., if a Claim is already pledged or transferred to a third party).

           (ii)  If there is a dispute or contest between you and the Customer regarding the Claim and such dispute or contest is not based on a mere unwillingness or inability to pay.  A dispute may be, e.g., when the goods or services are alleged to be faulty or not delivered in full.

           (iii)  Claims in connection to which you are in breach of the law applicable at the delivery address.

           (iv)  Claims where you have not complied with Klarna’s shipping policy with respect to each respective country, as may be in effect from time to time.  Klarna’s shipping policies for e-commerce transactions can be found at www.klarna.com/international/shipping-policies/ and for in-store Transactions can be found at https://x.klarnacdn.net/merchant-app/instore-shipping-policy-partner.pdf.  Copies of Klarna’s shipping policies are also available upon request.

           (v)  Claims where the Customer has used its lawful right to regret/cancel its purchase (and you have approved such regret/cancellation), or where you have extended the Customer a right to return the goods or services in excess of what is stipulated in applicable mandatory laws and the Customer has exercised such right.

           (vi)  Claims for which you are imposing terms with respect to the Klarna Services that are contrary to the terms provided by Klarna.

           (vii)  Claims in which a Customer acquires cash (e.g., a currency exchange), checks, vouchers, or other money orders.

           (viii)  Claims for Transactions that are made in violation of the Terms and Conditions, including the Klarna Scheme Rules (including these Supplemental Terms).

With regards to Claims for e-commerce Transactions:

          (i)  Claims where parcel ID is not promptly presented to Klarna upon request.

          (ii)  Claims where delivery of goods or services has not been carried out, has been unreasonably delayed, or has been carried out to an address other than one approved or provided by Klarna.

With regards to Claims for in-store Transactions (sale or hand-out in physical location):

           (i)  Claims where handout of goods or performance of the services has not been carried out, has been unreasonably delayed, or cannot be evidenced.

       (j)  Debt Collection Charges. Klarna reserves the right to charge you the following fees:

          (i)   $50 in the event that a Customer defaults on a Claim, Klarna sells or has sold all or a portion of a Claim to an external debt collector, and yet you cancel the Claim.

           (ii)  In the event of a Retransferred Claim, and in connection with the retransfer of the Claim Klarna is required to undertake unwarranted reminder or debt collection activities, Klarna reserves the right to charge:

- $1.50 for Claims in “reminder” status; and
- $10.00 for Claims in “debt collection” status.

       (k)  Marketing Activities.  You will coordinate with Klarna with respect to any marketing or similar activities that involve the Klarna Services, and Klarna must approve any such activities in advance (excluding any activities that are necessary for you to fulfil your obligations under these Supplemental Terms).  Klarna’s marketing department can be reached at marketing@klarna.com.  You will conduct all marketing of the Klarna Services in accordance with all Applicable Laws.

       (l)  Non-Discrimination.  You will not impose a higher price for goods or services on the basis that the purchase is made through Klarna or in any other way act discriminatorily towards Klarna, provided that you may, to the extent permitted by applicable law, impose fees on Customers equal to the Service Fee for a particular Transaction.

       (m)  Payment Outside of Klarna Services.  If a Customer pays for a Transaction directly other than through the Klarna Services, you must immediately register such payment with Klarna via the APM Platform or otherwise clearly communicate the payment to Klarna via such other methods as the parties may agree, with the proper indication of the purpose of the payment.

       (n)  Customer Terms and Conditions; Other Information.  To access the Klarna Services, Customers will be required to agree to Klarna’s customer terms and conditions. Klarna may obtain a Customer’s agreement via the Klarna hosted payment page (described in Section (d) of these Supplemental Terms).  Alternatively, Klarna may require you to provide the Customer with Klarna’s customer terms and conditions and other information pertaining to the Klarna Services before and during the purchase process, in which case Klarna shall provide you and Verifone with such terms and conditions and other information. If required by Klarna, you shall ensure that Customer agrees to be bound by such terms and conditions and provide Klarna with evidence of such acceptance.

       (o)  Processing of Complaints and Returns.  You shall process all complaints and returns promptly and, in the event that a Customer complaint or contestation has not been finally settled within one month, shall promptly notify Verifone and Klarna. In the event that you agree to accept the return of a purchase or price reduction (including a partial return), you shall immediately notify Klarna via the APM Platform or by such other means as may be agreed between the parties.

       (p)  Intellectual Property.  Klarna retains all ownership and intellectual property rights to anything developed by Klarna and provided to or accessed by you under these Supplemental Terms.  You specifically undertake never to use any sign, button, or trademark that could be considered confusingly similar to a Klarna trademark.

       (q)  Data Protection.

          (i)  Data Controller.  You, Verifone, and Klarna will each be independently acting as data controllers in respect of personal data processed by them respectively in connection with these Supplemental Terms.  The parties agree to comply with applicable privacy laws in respect of personal data processed in connection with these Supplemental Terms.  If, and to the extent that, a party processes personal data on behalf of the other, the parties shall in good faith discuss and agree upon a separate data processing agreement.

           (ii)  Processing of Personal Data.  Klarna will electronically process personal data such as contact information to provide you with the Klarna Services (via Verifone), administer the Customer relationship and for commercial and marketing purposes on behalf of Klarna or trusted partners.  The data may also be used for statistical analysis and business reporting purposes, during fraud investigations and to comply with Applicable Laws.  Klarna may disclose the information to other companies within the Klarna group, which may also use the information for the purposes described herein.  The data may be transferred outside the EU/EEA area to states that do not have the same level of protection of personal data.  Klarna is committed to protecting personal data and will put in place adequate safeguards to protect the data.  Registered persons have upon written request once a year the right of access to the data related to them.  They also have the right to rectify such data and to opt out from receiving further marketing communication.  Further information may be obtained by contacting the controller of the data at dataprotectionofficer@klarna.com or at the registered address stated above. BY PROVIDING PERSONAL DATA ABOUT OTHER PERSONS, YOU CONFIRM THAT YOU HAVE CONSENT TO DISCLOSE SUCH DATA AND FOR THE DATA TO BE USED FOR THE PURPOSES AND IN THE WAYS DESCRIBED HEREIN.

      (r)  Merchant Login.  You are responsible for all actions that are taken with your unique login to Klarna’s order handling system (either directly or through the APM Platform).

      (s) Suspension of Klarna Services.  Klarna shall have the right to cease the provision of the Services with immediate effect if: (i) you apply for bankruptcy (or a third party applies for your bankruptcy), suspend your payments, take up composition proceedings, are granted or apply for company reconstruction, prepare a balance sheet for liquidation purposes or otherwise may be considered insolvent; (ii) you are in breach of these terms and conditions or Klarna has reason to assume that you will be in breach of these terms and conditions; (iii) you provide incorrect or misleading information or conceal relevant circumstances; (iv) Klarna receives information that indicates that you do not meet Klarna’s requirements in terms of creditworthiness; (v) you offer goods or services that conflict with Klarna’s from time to time applicable ethical instruction, currently available through the following link: cdn.klarna.com/1.0/shared/content/policy/ethic/en_gb/merchant.pdf, or (vi) the percentage of Claims determined by Klarna as being fraudulent during any 30-day period exceeds 0.5% of the total processing volume of your Claims. In case Klarna ceases the provision of the Klarna Services in accordance with this Section, Klarna has the right to terminate your access to Klarna’s order handling system and ability to transfer Claims via the APM Platform. Further, Klarna shall have the right to Retransfer all outstanding Claims to Verifone, and Verifone shall have the right to Retransfer such Claims to you.

       (t)  Force Majeure.  Klarna shall not be responsible for failure or delay of performance if caused by lightning, fire, sabotage, government restrictions, electrical, Internet or telecommunication outage or another event outside its reasonable control, for such period as such force majeure event continues.  Klarna will use reasonable efforts to mitigate the effect of the force majeure event.  If such event continues for more than sixty days, Klarna may terminate the provisioning of the Klarna Services.

       (u)  DISCLAIMER OF WARRANTIES.  ACCESS TO KLARNA’S SYSTEMS OR DATABASES AND PARTICIPATION IN AND USE OF THE SERVICES VIA VERIFONE, INCLUDING BUT NOT LIMITED TO USE OF THE KLARNA APIs (AND DATA ACCESSED FROM THE APIs), ARE PROVIDED ON AN “AS IS” BASIS WITHOUT WARRANTY OF ANY KIND.  KLARNA DISCLAIMS ALL REPRESENTATIONS, WARRANTIES AND CONDITIONS, EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF QUALITY, SUITABILITY, MERCHANTABILITY, TITLE, NON-INFRINGEMENT, AND FITNESS FOR A PARTICULAR PURPOSE.  KLARNA THEREBY ASSUMES NO LIABILITY FOR DAMAGES AND SHALL IN NO CASE BE LIABLE FOR ANY INDIRECT OR CONSEQUENTIAL DAMAGES.