Consumer complaint received 2021-04-14
Company: Klarna AB
State: IL
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Trouble using your card
Sub-issue: Can't use card to make purchases

Complaint:
I used a point of sale purchase arrangement with Klarna, a payment processing company. They have a feature where, with credit approval, you may use a virtual credit card for use when shopping with merchants on their network and have the purchase broken down into 4 installments. 

Klarna has XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX as one of their merchants. I got pre-qualified for a spending amount with Klarna for XXXX XXXX XXXX, I had an approval to spend at least {$80.00} for a particular item. Klarna provided me a virtual card to use for said purchase at XXXX XXXX XXXX. 

I then proceeded to use that card at XXXX XXXX XXXX the same day of issuance. XXXX XXXX XXXX accepted the payment and I got an order confirmation from them. A few days later, XXXX XXXX  XXXX stated that the payment did not process with the virtual card that Klarna provided. I called XXXX XXXX  XXXX and they had no idea who Klarna was, I spoke to payment and merchant processing supervisors and they, in turn, had no idea that Klarna a company, let alone a partner to XXXX XXXX  XXXX. They advised I speak to the originator of the XXXX. 

I spoke with Klarna. They stated they would look into it. They first asked me to call back XXXX XXXX  XXXX and provide them with 6 digits of the virtual card number and an alphanumeric code to confirm that the card was valid for use. I called XXXX XXXX  XXXX and they confirmed a number, but they asked for the expiration. I did not have that and Klarna did not provide me one. 

I returned to Klarna, spoke with an agent on the phone and asked for further investigation. Klarna reported to me today that the virtual card they issued had expired and XXXX XXXX XXXX did not process the payment correctly. 

I used the information Klarna provided, it was an electronic card ; I submitted it for payment at XXXX XXXX XXXX and XXXX XXXX XXXX accepted it and provided me a receipt and an order number. Then all of a sudden my purchase is declined and neither Klarna nor XXXX XXXX  XXXX will accept any responsibility. 

I am the one left holding ( no ) bag. Klarna confirmed that I was not charged, but that is almost beside the point. Why am I using a service that ( a ) issues virtual cards that are accepted under dubious circumstances ( used card same day, Klarna said it expired, XXXX XXXX  XXXX processed it, issued me a receipt and confirmation ; Klarna provides me coded proof without an expiration number, XXXX XXXX  XXXX demands that information ) and I am the aggrieved consumer. 

Further, XXXX XXXX  XXXX today still has no idea who Klarna is internally via communications to their payment representatives and yet, if you look at Klarna 's site, it lists XXXX XXXX  XXXX and they have an application that allows you to pay conveniently with Klarna at any merchant, which is what I attempted and tentatively succeeded at doing. 

Klarna and XXXX XXXX  XXXX are pointing fingers at each other ( well Klarna toward XXXX XXXX  XXXX ; XXXX XXXX XXXX has no idea who Klarna is ) and I am left holding the bag. 

Klarna ran a credit check on me, they provided me a credit line and then conveniently tells me the credit expired >> I used their credit within the same day >>. 

This is a CFPB violation and Klarna has thousands of merchants. How many other merchants like XXXX XXXX XXXX have any clue how this relationship works, one wonders?

Well one thing is for sure, they duped me and nobody is taking responsibility for the harm I suffered.

Company response to consumer: Closed with explanation