• Join Date: Jan 2019
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    Klarna cash transaction fee
    30-01-19 , 21:52

    I ordered some clothing online recently and I took the option to buy now pay later. When it came to paying for my goods I had to pay via Klarna. I did this using my Tesco Credit Card but on looking at my statement, I notice that I have been charged a cash transaction fee for this. I'm a bit confused as I only purchased clothing and I wondered if this was correct and whether anyone else had encountered this. Thank you.
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  • Join Date: Oct 2016
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    Best Answer Re: Klarna cash transaction fee
    31-01-19 , 09:56

    Hi , sorry to hear you’ve been charged unexpectedly. I’ve provided some examples of when we would charge a cash transaction fee below:



    Wire or international money transfers – For example via Western Union, Transferwise, Moneygram or Revolut

    Repaying borrowing (e.g. loans and mortgages) – This covers all borrowing such as car finance, store cards, hire purchase or payments made to buy now pay later schemes.

    Purchasing non-sterling currency outside of Tesco – This can be foreign currencies such as the Dollar or Euro or cryptocurrencies such as Bitcoin

    Payments to prepaid or virtual cards – Curve, BPay and Squidcard are examples of prepaid cards. BPay has a range of wearable/keyring devices which all operate as pre-paid cards

    Investments – For example a stocks and shares ISA

    Share trading and spread betting - eToro, Plus 500, IG and IQ option are examples of popular share trading/spread betting platforms.



    If you’ve not used your credit card in any of these ways, please give us a call on 0345 300 4278 (24/7) where one of the team will be able to look into the cash transaction fee further.
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    Re: Klarna cash transaction fee
    26-11-19 , 10:24

    I have noticed this as well after purchasing a holiday through expedia - in partnership with Klarna - I have been charged £24.78 as a cash transaction fee - am I going to be charged this each time in my remaining two installments?next time I will just pay the entire amount up front - love how Klarna try to suck you in with the promise of "no fees" and then your credit card company charges them anyway!
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    Re: Klarna cash transaction fee
    26-11-19 , 10:35

    Hi , I'm sorry to hear you've had an unexpected fee. As you're using your credit card to make payments to a buy now pay later scheme, you will be charged a cash transaction fee and interest each time you make a payment. I'm sorry for any disappointment this causes - Caroline
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    Re: Klarna cash transaction fee
    23-02-20 , 10:12

    I have also been charged by Tesco for using a buy now pay later option - this is hitting the news at the moment and Tesco seem to be one of the only ones charging. Lloyd’s bank have said they will not charge so switching to them is an option.
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    Re: Klarna cash transaction fee
    01-03-20 , 16:48

    I have just seen the same, cash fee twice due to Klarna charge even one was credited back to my account. Simply answer is to now get a different credit card!
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    Re: Klarna cash transaction fee
    07-03-20 , 09:37

    If you pay for a holiday this way, you won’t have the same insurance benefits as you would if you pay directly with your credit card. Always a good back up in case all or part of your holiday falls through ie., Flybe, Monarch, Thomas Cook.
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    02-03-21 , 18:39

    I'm trying to get a refund from Klarna and they have asked me to fill in an online form with my IBAN number. I've got it from customer service but they tell me I need to put the credit card number in too. There is no option for this and klarna say it's not needed. Please can someone confirm this
  • Join Date: Mar 2020
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    03-03-21 , 05:39

    Hi @DarrenJ

    I would suggest you send Tesco Bank a 'Private Message' so this can be checked out and an appropriate response can be provided.

    Click on this link Tesco-Bank then scroll down, on the left hand side click 'Send Private Message'.
    Complete it, click 'Submit Message' and this will send your message securely and privately.
    Please include your full name, date of birth and postcode.

    You will receive a reply to your private message, with the appropriate response.

    Warm wishes, Caz @25H
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