Klarna Magento module

Klarna Magento module User guide Payment module version: 5.x.+ User guide 1.0 Revision: 1.1

Table of Contents User guide Welcome to Klarna How do you benefit? What is Klarna s offering? Prerequisites Before installation New integration Reintegration How to get started with the Klarna Magento Module Managing Orders Transaction history How to cancel an order How to resolve pending status (Not applicable for Klarna Checkout) How to make a full capture How to make a partial capture Invoice distribution Refunds Credit memo How to make a full refund How to make a partial refund How to refund an amount How to create an adjustment fee OneStepCheckout (optional) Klarna supports usage of OneStepCheckout in both Magento Community and Enterprise edition. Installation does not require any additional code changes. Setting Klarna as default payment method NOTE: If Klarna is set as the default payment method, the invoice fee will be shown in the Cart total before the customer has accessed the checkout, along with the default shipping method, as standard behaviour of OneStepCheckout in Magento. Enterprise Edition 1.10 specifics Troubleshooting Contact us Implementation Order management support Sales & other business inquiries

Welcome to Klarna Klarna is Europe s leading provider of invoice based payment solutions for e commerce. Klarna s safer and simpler buying process increases your sales by letting your customers shop using only top of mind information and pay after they ve received the goods. Klarna also assumes all potential risks, guaranteeing that you always get paid. Today, Klarna handles over 13 million consumers and is offered by over 18,000 e stores in 7 countries. How do you benefit? Increase your sales Klarna maximizes your conversion rate by making it safer and simpler for your customers to shop. Absolutely no risk Klarna assumes all potential risks, and guarantees you always get paid. Easy to integrate and use The module is available on Magento Connect. Once installed and configured with your Klarna credentials, you are ready to increase your sales. And our automated invoices mean less administration. What is Klarna s offering? We currently offer several services, all of which increase your sales, risk free: Klarna Checkout The ultimate Checkout Experience Klarna Checkout is proven to increase the conversion by 23%. Klarna Checkout is rendered through an iframe where all popular payment methods are included. Klarna Checkout has all of the popular payment methods included at time of launch! Klarna Invoice Consumers get their goods first and pay by after Invoice is the most preferred way to pay online. With Klarna Invoice, consumers shop only using top of mind information such as name, address and date of birth. A credit check is performed in a split second, so you can ship the goods directly. Klarna pays you no matter what and the customer pays after at least 14 days. Klarna Account Increases your customer s buying power through part payment This service conveniently gathers all purchases into one monthly invoice, which consumers can pay at once or in flexible installments. Allowing for more purchases with a higher average basket value. Just like Klarna Invoice, the credit check is performed in the checkout with no paperwork needed, and you get paid the full amount, regardless of how the consumer chooses to pay. Interested? Sign up online now!

Prerequisites Magento Platform Community Edition: 1.6.* 1.9* Enterprise 1.1* 1.13* PHP Version 5.3* 5.4* Before installation New integration Make sure that you fulfil the Prerequisites to be able to get full support. Reintegration If you are using Klarna Magento Module 4.* and earlier, please be aware that: Version 5.* is not backwards compatible We recommend you to finish your orders before start using 5.* We advise you to finish and close the Klarna orders up until Capture state (cancel or capture) if you are updating your integration from module 4.*. Refunds will not work for orders done with module 4.*.

How to get started with the Klarna Magento Module Installing the Klarna module is accomplished through a few steps: Configure the module You set up the settings for the payment methods by for each payment method that you want to enable in your checkout. You find the full description of the fields in the Configuration episode. Enter your Credentials To be able to communicate with Klarna, unique Klarna credentials are needed. If you have not received any credentials, please contact Klarna. You will need to enter your unique credentials separately for each operating country you have applied for. Test purchases After installing and enabling Klarna on your Magento platform, we recommend you to make a test purchase before going live, this to validate the settings. As a default setting when installing the module, the payment methods are set in Testdrive. To make test purchase, you need to use Klarna s test customers. http://developers.klarna.com/en/testing/invoice and account

Configuration Fields For Klarna Invoice, Account and Campaigns Step by step configuration Log in to the Magento Administration panel. Proceed to System Menu Configuration Sales Payment Methods. Enter your settings in the fields of Klarna Account, Klarna Invoice & Klarna Campaign. Field Enabled Merchant ID Shared secret Title Server New order status Cancel pending reservations Explanation Set this to Yes to be able to use the payment method. If you have multiple stores, we strongly suggest you set this to Yes in the default scope, then set to No in the stores that shouldn't have it. Enter the Merchant ID you have received from Klarna. If you have multiple stores, we strongly suggest you set your main merchant id in the default scope and if you have different merchant ids in other stores, change it in that specific stores scope. Enter the Shared secret you have received from Klarna. If you have multiple stores, we strongly suggest you set your main shared secret in the default scope and if you have different shared secrets in other stores, change it in that specific stores scope. The title will be added as the title of the payment method. If you leave the default text (Klarna Invoice for example) it will translate to your language automatically. Set this to Testdrive when you are testing the payment method in order to create test payments. Remember to use specific test customers only, when doing your tests. See Klarnas website for more details. When you are finished testing the payment method, set this to Live in order to be able to make real payments. Note: You need to have an agreement with Klarna in order to connect to Live. Choose the status you want new Klarna orders to have. Note that a new Klarna order has the state processing, so you can only choose a status that is available in that state. Klarna responds instantly to a reservation request (when the order is placed). Sometimes Klarna can not decide instantly if the reservation is acceptable and will then respond with Pending. The order is then placed in Pending state in Magento (see below for more details). You can automatically cancel all Klarna orders that returns with status Pending, by setting this to "Yes"

Send invoice via e mail Allow separate addresses Language Allowed countries Specific countries Sort order If set to Yes, Klarna will send out the invoices as soon as the reservation is activated. Magentos built in e mail functionality will not be affected by this setting. Klarna forces the billing and shipping address to be your official address. You can have a separate agreement with Klarna to allow different addresses, which means you can have another invoice address (shipping must still be your official address). If you have such an agreement, you must set this to Yes to allow it in Magento. If the customer doesn't select separate address in checkout, both addresses will still be updated to the official address. Only if the customer chooses separate address in checkout, will this function come into effect. If set to Default Klarna will automatically choose the stores default language from Magento's general setting. The main reason for this setting is if you wish to have your store in another language than your official language, for example English selected in the general setting. You must then choose your actual language here, as Klarna will not accept English as the language. If set to "All Allowed Countries" the payment method will only be available to the countries selected in the list General Countries Options Allow Countries. This setting has little effect, it is there for Magento compatibility. Klarna only allows orders according to this specific stores language and country setup anyway. If you don t want to allow this payment method to be visible for all countries & you have set Allowed countries to Specific countries, this list will determine which countries the payment method should be available for. This setting has little effect, it is there for Magento compatibility. Klarna only allows orders according to this specific stores language and country setup anyway. This determines in which order the payment method will be displayed in. Lowest number is displayed first. Negative numbers are also allowed. Specific Klarna Invoice settings Field Explanation Invoice fee Invoice fee label This determines the invoice fee amount. Set this in the websites currency. See section Other settings for more details. Set the Invoice fee label which can be seen in checkout, order confirmations, my account and in admin pages.

Minimum order amount You can set the minimal amount the order must be in, for the customers to be able to choose Klarna Invoice. If set to blank, it will always be visible. Klarna Account and Special Campaigns has the same feature, but they are built into each PClass. Specific Klarna Account settings Field Explanation Update PClasses URL to terms and conditions PClass stands for Payment Class and is a set of rules and prices for various part payment options. When you press this button, all active payment classes for your account will be fetched from Klarna. This is usually done when activating new payment options and campaigns. This fetches PClasses for both Klarna Account and Klarna Campaigns In Germany and Austria it is required to have a link to your terms and conditions, as well as a link to Klarna s. This specifies what URL the link should direct to. This can be written as a full URL, including http://, or a Magento URL key (everything after the last / of this sites URL name). Specific Klarna Campaign settings Field Explanation URL to special logotype URL to terms and conditions Special campaign methods have various logotypes depending on campaign, this is a way to choose a specific logotype for current campaign. Klarna has them on their CDN. For example: https://cdn.klarna.com/public/images/se/badges/v1/christmas/se_christmas _badge_std_blue.png?width=250 In Germany and Austria it is required to have a link to your terms and conditions, as well as a link to Klarnas. This specifies what URL the link should direct to. This can be written as a full URL, including http://, or a Magento URL key (everything after the last / of this sites URL name). Go through the following standard Magento settings (they can all be found in the System Menu Configuration)

Sales Tax Field Tax class for Klarna invoice fee Klarna invoice fee prices Display Klarna invoice fee (Shopping Cart Display Settings) Display Klarna invoice fee (Orders, Invoices, Credit memos Display Settings) Apply Customer Tax Explanation Choose how tax for Klarna Invoice Fee should be calculated (what rate etc). If prices entered in the payment method is including tax or excluding tax. If the invoice fee should be shown including or excluding VAT (or both) in cart and checkout. If the invoice fee should be shown including or excluding VAT (or both) in both Admin and My Account pages. The setting should be set to apply customer tax After Discount.

Configuration Fields For Klarna Checkout Step by step configuration Log in to the Magento Administration panel. Proceed to System Menu Configuration Sales Payment Methods. Enter your settings in the fields of Klarna Checkout Field Enabled API Version Merchant ID Shared secret Server Auto prefill known Klarna details New order status Explanation Set this to Yes to be able to use the payment method. If you have multiple stores, we strongly suggest you set this to Yes in the default scope, then set to No in the stores that shouldn't have it. When set to Yes Klarna Checkout will be the default payment method. Klarna Checkout have two different API depending on which country KCO should be used in. Currently the API KCO V.3 (UK) should only be used for merchants using the UK Checkout, KCO V.3.1 should be used if suggested by your Klarna contact. API Version KCO V.2 should be used for all other markets. Enter the Merchant ID you have received from Klarna. If you have multiple stores, we strongly suggest you set your main merchant id in the default scope and if you have different merchant ids in other stores, change it in that specific stores scope. Enter the Shared secret you have received from Klarna. If you have multiple stores, we strongly suggest you set your main shared secret in the default scope and if you have different shared secrets in other stores, change it in that specific stores scope. Set this to Testdrive when you are testing the payment method in order to create test payments. Remember to use specific test customers only, when doing your tests. See Klarna s website for more details. When you are finished testing the payment method, set this to Live in order to be able to make real payments. Note: You need to have an agreement with Klarna in order to connect to Live. For registered customers it is possible to pre fill the checkout with the credentials entered at the customers page. When the setting is set to Yes the module will pre fill the information, enabling a true one click experience. Choose the status you want new Klarna orders to have. Note that a new Klarna order has the state processing, so you can only choose a

status that is available in that state. Disable Klarna Backend Disable payment widget on product page URL to terms and Conditions Layout Show login form Extra Order ID Attribute Allow separate addresses Force entry of phonenumber Enable DHL Packstation Enable cart in checkout page Set to Yes if the built in Ordermanagement calls should be enabled. If set to NO Klarna will include part payment information on the specific product. The Part payment widget gives the customer part payment information related to a product. In Klarna Checkout, Klarna s terms and conditions are included and also the stores own terms and conditions. This field specifies what URL the link should direct to. This can be written as a full URL, including http://, or a Magento URL key (everything after the last / of this sites URL name). The plugin offers two different layouts, a default layout that should be used if personal styling is done and 2 column layout if no alteration to the checkout should be conducted. If 2 column layout is used, a login field can be added on the checkout page. If the user is already logged in, it will not appear. Klarna have two dedicated fields for the merchant to submit an identification number. How this can be used, is up to you, the sky is the limit In KCO the different shipment address is only a click away for the user. This setting controls whether the user can select a separate shipping address in the dropdown menu in the Iframe. This setting varies depending on what country, therefore Country Default should be used if nothing else has been said. There is also a possibility to set it to Yes or No. In some countries were phone numbers are optional to submit when finalizing a purchase can be changed to force it instead. When set to Yes, the iframe will control that a phone number has been entered, even if it was optional at first. When set to No, countries were phone is optional will remain optional. Please note that Klarna might overwrite the field if it is not allowed to use that setting. This setting only applied for KCO Germany. When set to Yes, the user will have the possibility to select DHL packstation as delivery address. When set to Yes the option will be added in the dropdown of shipping methods. On the page where KCO is loaded, there is a cart that is loaded by default. If you do not wish to have this mini cart and summary on the

same page as KCO, set this No. If you would like to have all of these features, set this to Yes. Enable autofocus for Klarna Checkout When this is set to Yes the iframe will be selected when loaded and the user can start typing their credentials. Support of other payment methods Field Explanation Enabled Label for other payment methods button Label for back to Klarna Checkout button Automatically reactivate Klarna Checkout If set to Yes a button will appear with the name Other payment methods as default. When the user clicks on this button, they will be redirected to the checkout installed other than Klarna Checkout. If set to No no other payment methods outside Klarna s Checkout will be allowed. The button mentioned in the above field can be customized. In this field either a text or a picture linked with an URI can be used. The URI does not support https, so it should be http. When the support of other payment methods are enabled, a button to redirect them back to Klarna Checkout will be included in the redirected Checkout process. This button can also be edited with an own description or an image from a URI as the option above. To always have Klarna Checkout surpass the traditional checkout, this should be set to Yes. If enabled, it will go to Klarna Checkout next time checkout is requested, if user exits checkout by going to another page. Attention! If there are many customizations in standard checkout, it might cause this reactivation as well! Newsletter Field Enabled Checked by default Explanation On the checkout page a checkbox will appear for the customer to select if they would like to subscribe on Newsletters If the checkbox for the Newsletter should be checked by default.

A/B Testing Settings Field Explanation Enable for IP range (last digit) Enabled for Logged in customers Enabled for Specific customer groups User Defined Variables Enable A/B testing only for a specifc range of customers. If the customers IP is within the range, the KCO iframe will be loaded for them, if not, they will be redirected to standard flow. If A/B testing should be enabled or not for logged in customers. Specify what type of customer groups A/B testing should apply upon. Klarna Checkout offers many customisations. Instead of altering and challenging the code, this field validates the input and adds it to the code. Please note that the formation should be JSON, and that each section is added as an independent JSON. Example: To add color to the checkout, add the following code: { "options": { "color_button": "#539932", "color_button_text": "#FFFFFF", "color_checkbox": "#539932", "color_checkbox_checkmark": "#539932", "color_header": "#FFFFFF" } } Shipping Countries This list is only supported by API V.3.1. Please consult Klarna prior to usage. General General Field Default country Locale Explanation Orders placed with addresses in this country will be possible to pay with Klarna. If you want to support more than your country, you must make another store front or website. The language here must correspond with the country in the line above. If it does not, please use the setting in payment method called Language (see

above). General Currency Setup Field Explanation Base Currency Locale The base currency must match country mentioned above. As this is a per website setting, having two separate countries with different currencies as store fronts is not supported, they must then be different websites. In other words, you can have countries with same currency as different store fronts, but as soon as you have a country that has another currency, you need to make that a separate website. The language must correspond with the country in the line above. If it does not, please use the setting in payment method called Language (see above). Disable Klarna payment methods Select No in the settings Enabled for each payment method you want to disable.

Managing Orders Transaction history To get an overview of the transactions been made through your Magento Platform simply navigate over to Sales > Transactions. Here you can see and follow the events of orders when capturing, refunding etc. How to cancel an order An order can be cancelled before it has been captured. This will trigger a cancellation call to Klarna, to cancel the reservation in Klarna s server. How to resolve pending status (Not applicable for Klarna Checkout) An order is in pending status when the status of the order is Payment Review or similar order status. To resolve the pending status, you need to open the order and fetch for an update. This is done on the very top right were a button displays Get Payment Update. This will trigger a call to Klarna to update the order status.

If the order is accepted, it will change into normal order status. If it got denied, it is automatically canceled. How to make a full capture An order is not completed until it has been activated towards Klarna. To activate an order, simply open the order and click on Invoice. Trigger the order activation to Klarna by Capture Online > Submit Invoice. NOTE: Using Capture offline, the changes will only apply changes to the order in the Magento platform and no calls will be sent to activate the order in Klarna s server. How to make a partial capture Partial capture is possible. Update the quantities to the amount that you want to capture.

Invoice distribution If you have set Send invoice via e mail to Yes, the invoice will be sent out to the customer upon capturing the order. The invoice can also be downloaded if you want to send it with the goods. Within the Payment information you will see a link to the invoice. This invoice link is available for 30 days after the order has been captured.

Refunds Credit memo Making returns and amount refunds on orders paid with Klarna is possible. Note that refunds for these orders are not done on the order, but on the actual invoice in Magento. Select the desired order in the list. Go to the Credit memo view to submit changes to your order. How to make a full refund You create a full refund of the order by leaving the Refund items section and Refund totals untouched. Trigger the full refund to Klarna by Refund.

NOTE: Using Refund Offline, the changes will only apply changes to the order in the Magento platform and no calls will be sent to modify the order in Klarna s server. Make sure to always use Refund when adjusting the order in Credit Memo. Klarna invoice fee If and order has been paid with Klarna invoice and you have applied an invoice fee, this is shown in a new row in the Refund totals. NOTE: We strongly recommend you to always refund the whole invoice amount. How to make a partial refund Refunding parts of the order is also possible. Within the Refund items section, you can change the quantity of the items to refund. You should then update the quantity of each item that you want to refund. How to refund an amount

Adjustment refund is used as a goodwill discount or similar, and will refund an amount of the order in Klarna, i.e. deduct a negative amount from the order. How to create an adjustment fee Adjustment fee will deduct the positive amount that you enter in the field from the rest of the refund that you are making, in other words giving cash back. (Above we are refunding 277.14 from the Refund Items + Klarna Invoice fee + Shipping fee, and setting and Adjustment fee of 100). NOTE: Magento can by default not process adjustment fees that is increasing the original amount.

OneStepCheckout (optional) Klarna supports usage of OneStepCheckout in both Magento Community and Enterprise edition. Installation does not require any additional code changes. Setting Klarna as default payment method Klarna can be set as the default payment method, being pre selected when the customer enters the checkout page. This is done by setting the Default payment method to desired Klarna payment method. NOTE: If Klarna is set as the default payment method, the invoice fee will be shown in the Cart total before the customer has accessed the checkout, along with the default shipping method, as standard behaviour of OneStepCheckout in Magento.

Enterprise Edition 1.10 specifics The current setup of the module does not set up VAT correctly in the module. A snippet needs to be changed in the following file: app/code/community/vaimo/klarna/etc/config.xml Original code: <quote> <totals> <vaimo_klarna_fee> <class>klarna/quote_total</class> <after>subtotal</after> <before>tax,tax_subtotal</before> <renderer>klarna/checkout_fee</renderer> </vaimo_klarna_fee> <vaimo_klarna_fee_tax> <class>klarna/quote_tax</class> <after>tax_subtotal</after> <before>tax,grand_total</before> </vaimo_klarna_fee_tax> </totals> </quote> This is how it must look in 1.10: <quote> <totals> <vaimo_klarna_fee> <class>klarna/quote_total</class> <after>subtotal,discount,shipping</after> <before>tax,grand_total</before> <renderer>klarna/checkout_fee</renderer> </vaimo_klarna_fee> <vaimo_klarna_fee_tax> <class>klarna/quote_tax</class> <after>subtotal,discount,shipping,tax</after> <before>grand_total</before> </vaimo_klarna_fee_tax> </totals> </quote>

Troubleshooting If Klarna is not available in the checkout, please make sure you have the correct Default country, locale and currency setup. See above for details. Make sure that logging has been enabled. There are three different logs related to Klarna s module. These can be found in var/logs and has Klarna in the title. Klarna s module does not have any rewrites, it using all of magento s standard processes. Most common use case of conflicts is that another extension is not built accordingly to the magento processes. Check that the tax settings has been set correctly. Please see the section Sales >Tax Update your PClasses if Klarna Account or Klarna Special Campaign is not appearing. Also, when you choose to update the, you are shown part of the details, where you can see minimum amount for example. Make sure you have passed that amount in your cart if making a test purchase, otherwise this option will not be shown. If you get this error while fetching PClasses: Fetching PClasses failed for store. Something is not properly setup for that store, or that country is not allowed by Klarna or by your Klarna account. The error also informs you what store the error is in, so make sure you check the settings of that store (if different from default scope) Norway has a separate issue where they have two official versions of their language. NB and NN. Klarna only supports NB, so if you have your website set to NN, you must choose Norwegian in the Klarna Language settings. If you are using OneStepCheckout with several countries and cannot find Klarna in the checkout, make sure that you have turned off Enabled GeoIP when testing. Netherlands has a cap on Klarna Account offer of 250, where the Account service will not be offered if the order total is above 250.

Contact us Implementation Klarna s Integration department offers support during your integration process, reintegration and other technical questions that arise during your installation. Contact options Order management support If you have questions regarding the order management and features in our web interface Klarna Online, or questions about specific orders, our Merchant Support department is available. Contact details Sales & other business inquiries If you are interested in signing up for our services to increase your sales, get in touch with our Sales department. Contact options