KLARNA shoppers who use their credit card to pay for goods using its “buy now pay later” schemes may be charged for the “free” service.
Hundreds of retailers let customers use Klarna to pay for their shopping so they can spread their payments over three instalments and promise that it’s “interest-free”.
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But a quirk in the way that credit card payments are processed means some banks are charging customers a fee of up to 3.99 per cent.
For example, a £60 purchase would incur a fee of £2.40.
The Sun has found that Tesco Bank customers have been charged fees, while there are reports of it happening with another major banking group.
It is because of the way that some banks classify Klarna as a “cash-like transaction” much like a gambling transaction or cash withdrawal.
How to complain to your bank
IF you’ve noticed something on your credit card statement that you don’t think should be there then you should let your bank know straight away.
You can contact them in person, on the phone or by writing a letter or email.
Here’s how you should complain to your bank according to Citizens Advice:
- Keep a record of the time and date that you contacted the bank about the issue,
- Collect all of the relevant information that you might need for the complaint, such as bank statements and receipts,
- Explain your problem calmy but firmly, including all of the facts, important dates and the names of anyone from the compnay that you spoke to about this,
- Tell the company what you want them to do to put it right,
- Always keep a copy of your letters incase you need them later on.
The fee is hidden in Klarna’s terms and conditions, where it says: “…the issuer of your card may charge interest or other fees under the terms of your card agreement.”
Martyn James from complaints group Resolver said: “This is completely unfair and I would encourage people to take it further.
“Ask your card provider to refund the money and if they refuse, take it to the ombudsman who will give a judgement on it.”
Klarna told The Sun that it is aware of the issue and that anyone who is charged a fee should take it up with their card provider.
Luke Griffiths, general manager at Klarna, said: “We would like to make it clear that Klarna is not charging this fee, it is the banks themselves.”
He added: “Klarna is working with providers to try and resolve this issue as soon as possible, but it will need to be a combined effort, as we are unable to solve it alone.”
Tesco Bank did not wish to add comment.
Over two million shoppers have damaged their credit scores using buy now pay later schemes, research revealed last month.
Love Island stars such as Anna Vakili and India Reynolds have also been branded “irresponsible” for promoting these types of firms that have been accused of pushing shoppers into debt.
Borrowers who damage their credit scores using one of these short-term finance schemes could face being rejected for a mortgage, loan or even mobile phone contract as a result.
