Consumer FX is a Klarna feature that lets customers from other Klarna markets pay with Klarna in your store, even if you only sell in one currency. Klarna converts the order amount to the customer’s local currency within the Klarna purchase flow. You receive your payout in the currency the order was placed in.

For example, a US-based store sells in USD. A customer in Germany checks out in USD, pays Klarna in EUR and the store receives its payout in USD. Without Consumer FX, German customers would need to check out in EUR, which requires a currency switcher and a Klarna agreement for EUR.

In the Klarna for WooCommerce changelog, this feature is referred to as the Klarna cross border add-on.

Key concepts

Transaction currency

The currency the order is created in. This is the currency shown in your WooCommerce checkout.

Billing currency

The currency the customer pays Klarna in, based on the billing country of their Klarna account.

Settlement currency

The currency Klarna pays out to you. This is the same as the transaction currency.

Requirements

• Klarna for WooCommerce version 4.13.0 or later
• Consumer FX enabled on your Klarna merchant account – contact Klarna merchant support to get started
• A bank account configured in the Klarna Merchant portal for each currency you sell in

How it works in Klarna for WooCommerce

Klarna for WooCommerce regularly asks Klarna which markets and settlement currencies each set of credentials is allowed to use. This happens automatically once a day and whenever you save the plugin settings. The plugin stores this information and uses it at checkout.

When a customer checks out, the plugin first tries the credentials for the customer’s own country. If those credentials can’t be used for the store currency, the plugin looks for another set of credentials that Klarna has approved for both the customer’s country and the currency. If more than one set qualifies, credentials in the same API region as the customer are preferred.

The credentials used for the purchase are saved on the order. Order management, subscription renewals and refunds then keep using the same Klarna account that authorized the purchase.

Set up Consumer FX

1. Make sure Consumer FX is enabled on your Klarna merchant account.
2. Navigate to WooCommerce → Settings → Payments → Klarna Payments and confirm that your credentials are entered correctly.
3. If you use the Enter the countries where Klarna will be available setting, add the customer countries you want to sell to. Klarna is only offered in the countries selected here.
4. The plugin fetches the latest markets and currencies from Klarna automatically once a day. If Consumer FX was just activated on your account, click Save changes to fetch them right away.
5. Place a test purchase with a billing country outside your home market and confirm that Klarna is available at checkout. You can use Klarna’s sample customer data for testing.

What the customer sees

Prices in your store and checkout stay in your store currency, so you don’t need to change anything on your site. In the Klarna purchase flow, the customer sees the amount in their billing currency, based on Klarna’s current exchange rate. Klarna informs the customer that the final rate is set at capture. Klarna then sends the final amount by email and shows it in the Klarna app.

Exchange rates, capture and refunds

Klarna sets the exchange rate separately at authorization, capture and refund, so the rate can differ between these steps. This means a refunded amount in the customer’s billing currency may not match the original charge exactly. In some cases, the customer may have a small remaining balance with Klarna after a full refund. Klarna handles this directly with the customer. You don’t need to adjust anything in WooCommerce.

Good to know

• You don’t need to add exchange rate disclaimers to your site. Klarna handles exchange rate information and customer consent in the purchase flow.
• Avoid naming a specific payment method, such as “Pay in 4,” in your payment method title or description. The payment options Klarna shows depend on the customer’s country, so use general wording such as “Pay with Klarna.”
• Consumer FX doesn’t show local prices in your store. If you want customers to see prices in their own currency, read Sell in multiple currencies.

Troubleshooting

Klarna is not available for customers in other countries

• Save the plugin settings to fetch the latest markets and currencies from Klarna right away.
• Check that the customer’s country is selected in Enter the countries where Klarna will be available.
• In live mode, if Klarna returns no markets or currencies for a set of credentials, the plugin logs the following message: No available_markets or allowed_settlement_currencies returned for [country]. Cross border purchases are not possible with these credentials.

Error 400 – Bad value: purchase_currency

Klarna checks the purchase currency against the bank accounts configured on your Klarna account. Add a bank account for the currency in the Klarna Merchant portal under Settings → Bank accounts. You need administrator access to do this.