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Needs verification2026-10-22

Klarna - Membership Agreement

US · 2026-10-22 · V2terms

What actually changed

Needs verification

Text differences are confirmed, but the available evidence does not establish their substantive effect. This can include extraction or presentation differences.

Change impact: not assessed. The risk score describes the assessed policy and does not measure the effect of this revision.

Before / after comparison (4/4)

Exact snapshot excerpts. Highlights show edited text; surrounding context can be unchanged. The full diff follows in the analysis.

Before · V1

…creen during Membership sign up, and may include a credit or debit card, Klarna balance account, or bank routing and account number (“Preferred Payment Method”) or one…

After · V2

…creen during Membership sign up, and may include a credit or debit card, Klarna personal account, or bank routing and account number (“Preferred Payment Method”) or one…

Before · V1

… receive a new physical card. For more information on card replacement fees see Balance Deposit Account Disclosures. 6.4. Changes to your Membership Rewards Benefits …

After · V2

… receive a new physical card. For more information on card replacement fees see Klarna Personal Account Disclosures. 6.4. Changes to your Membership Rewards Benefits…

Before · V1

… a new physical card. For more information on card replacement fees see Balance Deposit Account Disclosures. 6.4. Changes to your Membership Rewards Benefits We may …

After · V2

…e a new physical card. For more information on card replacement fees see Klarna Personal Account Disclosures. 6.4. Changes to your Membership Rewards Benefits We may …

Before · V1

…ising out of or relating to this Agreement, your Klarna Savings Account, Klarna Balance account and Klarna Debit Flex card, loans, purchases or payments you make, tran…

After · V2

…ising out of or relating to this Agreement, your Klarna Savings Account, Klarna Personal account and Klarna Debit Flex card, loans, purchases or payments you make, tran…
Method and snapshot references

Automatic classification v1.0. Excerpts are partial; history and original AI assessments are preserved.

SHA-256 V1: 9de1304ebf918855760cc500ec50bb9a096b61b4e2efc727bd7bfb2faaa8f2c0
SHA-256 V2: aeec33a3b4415e8855d4ac0fe3684f864e1485df4f7d7d94904c8afcf8b961ae

8/10
Policy risk (AI): High

Summary

Text differences are confirmed, but the available evidence does not establish their substantive effect. This can include extraction or presentation differences.

Original AI screening

Automated analysis retained with the record; it may not accurately describe this revision. Use the change verification and version comparison to determine what changed.

Klarna's Membership Agreement update is minor, changing "balance account" to "personal account" without affecting user rights or obligations.

  • The term "Klarna balance account" has been updated to "Klarna personal account" throughout the agreement.
  • No changes were made to membership fees, benefits, or the automatic payment authorization process.
  • The mandatory arbitration clause and class action waiver remain, limiting user legal recourse.
  • The broad consent for sharing personal information with Klarna and its partners is unchanged.
Why this score
Terminology updated from "balance account" to "personal account" in payment methods.
Mandatory arbitration and class action waiver remain, limiting user legal recourse.
Broad consent for sharing personal information with partners remains.

What changed

Membership Fees Klarna “Core” - Membership Fee $ 4.99 per month Klarna “Plus” - Membership Fee $ 9.99 per month Klarna “Premium” - Membership Fee $ 19.99 per month Klarna “Max” - Membership Fee $ 44.99 per month UNLESS YOU ARE SUBJECT TO THE PROTECTIONS OF THE MILITARY LENDING ACT, 12 U.S.C. §§ 987, et seq, THIS AGREEMENT INCLUDES AN ARBITRATION PROVISION. PLEASE READ THE ARBITRATION PROVISION CAREFULLY AS IT WILL HAVE A SUBSTANTIAL EFFECT ON YOUR RIGHTS, INCLUDING YOUR RIGHT TO A JURY TRIAL AND TO BRING OR PARTICIPATE IN A CLASS ACTION. BY ACCEPTING THIS AGREEMENT, YOU AGREE TO THE TERMS OF THE ARBITRATION PROVISION. “Klarna Membership” is a credit plan program provided by WebBank (“we”, “us”, and “our”) under the terms of this Klarna Membership Agreement (“Agreement”) that provides certain benefits (“Membership Rewards”), as described below and the Membership Rewards Benefits Summary. There are four Klarna Membership types: (1) “Core”,(2) “Plus”, (3) “Premium, and (4) Max, each of which is entitled to distinct Membership Rewards Benefits as described in the Membership Rewards Benefits Summary (hereinafter collectively referred to collectively as a “Klarna Membership” or separately as “Klarna Core”, “Klarna Plus”, “Klarna Premium” or “Klarna Max”). Signing up to Klarna Membership provides certain credit and non-credit related benefits when you use Klarna to make purchases. By subscribing to Klarna Membership, you agree to the terms of this Agreement, including the Automatic Payment Authorization below. The words “you” and “your” mean the person electronically signing this Agreement and whom WebBank approves to use the membership under this Agreement (“Membership”). Please keep a copy of this Agreement for your records and read it carefully. ## 1. Acceptance, Creation and Use of Klarna Membership By clicking the “Confirm and Pay” button in the Klarna App to complete the sign up for Klarna Membership and/or by using your Membership, you agree to and accept to be bound by the terms of this Agreement. You may use the Membership only for personal, family, or household purposes, and not for any business, commercial or investment purpose, or for any illegal purpose. ## 2. Membership Requirements In order to obtain and use your Membership, you must apply for Membership and be approved by us. Our requirements include that you must (1) have an active Klarna User Account that is in good standing, (2) be physically located in and a resident of the United States, and (3) be approved for Membership at our sole discretion.Any Membership benefits and features provided for under this Agreement or that we may offer in the future are limited to the Klarna User Account associated with your Membership, which is determined based on the Klarna User ID that is logged in to the Klarna App at the time you sign up for Klarna Membership. If you use a Klarna User Account other than the one associated with your Membership, your Klarna Membership Rewards Benefits will not be applied to any partner benefits, extensions of credit, purchases, or other transactions and activity related to such other account. ## 3. Membership Fee; Membership Payment Due Date You agree to pay us the Membership Fee for your Klarna Core, Plus, Premium, or Max Membership (listed above) each month on the monthly anniversary of your Membership enrollment date (the “Membership Payment Due Date”). If the monthly anniversary of your Membership enrollment date in a given month falls on a date that does not occur in such month because it is shorter than the month of your enrollment, your Membership Payment Due Date for such month shall be the last day of that month. 3.1. If we or our servicer Klarna are unable to collect your Membership Fee on the scheduled Membership Payment Due Date, you will receive a seven (7)-day notice reminding you to make the payment. This notice will be sent using the contact details associated with your Klarna Membership Account (such as email or app notification). 3.2. If payment is not received within that seven (7)-day grace period, your payment will be considered late, and your account will be in arrears. While your account is in arrears: - You may temporarily lose access to certain Membership features, rewards, or services. - You may be unable to make new purchases or process new Membership-related transactions through Klarna until your outstanding balance is paid in full. - We may make additional attempts to collect the outstanding Membership Fee using your authorized payment method(s). 3.3. If payment remains outstanding by your next scheduled Membership Payment Due Date, your Klarna Membership Account may be suspended or cancelled. Cancellation means your access to all Membership benefits, including insurance benefits, will end, and your Membership will not renew unless you bring your account current and re-enroll. 3.4 Additional Rights and Remedies We reserve the right, at our discretion, to: - Suspend or limit access to your Membership or related Klarna services at any time after a missed payment. - Charge a reasonable late fee or service fee as permitted by applicable law, provided any such fee will be clearly disclosed to you at the time it is assessed. - Recover any unpaid amounts owed to Klarna under your Membership, including through permitted collection methods. - Terminate your Membership immediately if we believe your account is being used fraudulently or in violation of these Terms. Any suspension or cancellation of your Membership will not limit our rights to recover amounts owed or pursue other lawful remedies. 3.5. Reinstating Your Membership If your Membership is cancelled due to non-payment, you may re-activate it by paying all outstanding amounts due and, if applicable, re-enrolling under current Membership Terms. We are not obligated to reinstate your Membership under the same pricing or benefit structure. You may lose access to any insurance benefits that were obtained while your membership was active if your membership lapses and you reactivate it later. ## 4. Automatic Payment Authorization - You authorize our servicer, Klarna, to debit your Membership Fee, and any applicable taxes, on or after the Membership Payment Due Date from your existing Klarna preferred payment method associated with your Klarna account, which will be shown on the screen during Membership sign up, and may include a credit or debit card, Klarna balance account, or bank routing and account number (“Preferred Payment Method”) or one of your Back-up Payment Methods as shown in your Klarna profile. If you subsequently change your Preferred Payment Method in your Klarna account, your Preferred Payment Method for your Membership will also be changed for subsequent billing cycles. You also have the option to designate additional back-up Payment Methods in your Klarna profile to make payments in the event we are unable to complete a payment using your Preferred Payment Method (together, along with any substitute Payment Method you or your financial institution or card issuer may later provide to us for this purpose, the "Back-Up Payment Method"). If you designate one or more Back-Up Payment Methods in your Klarna profile, it must be a different account or card than the one designated as Preferred Payment Method. Your Preferred Payment Method, Back-Up Payment Method, and additional Payment Methods can be changed, modified or terminated in the Klarna App. + You authorize our servicer, Klarna, to debit your Membership Fee, and any applicable taxes, on or after the Membership Payment Due Date from your existing Klarna preferred payment method associated with your Klarna account, which will be shown on the screen during Membership sign up, and may include a credit or debit card, Klarna personal account, or bank routing and account number (“Preferred Payment Method”) or one of your Back-up Payment Methods as shown in your Klarna profile. If you subsequently change your Preferred Payment Method in your Klarna account, your Preferred Payment Method for your Membership will also be changed for subsequent billing cycles. You also have the option to designate additional back-up Payment Methods in your Klarna profile to make payments in the event we are unable to complete a payment using your Preferred Payment Method (together, along with any substitute Payment Method you or your financial institution or card issuer may later provide to us for this purpose, the "Back-Up Payment Method"). If you designate one or more Back-Up Payment Methods in your Klarna profile, it must be a different account or card than the one designated as Preferred Payment Method. Your Preferred Payment Method, Back-Up Payment Method, and additional Payment Methods can be changed, modified or terminated in the Klarna App. Temporary Hold: No more than seven (7) days in advance of your monthly Membership Payment Due Date, our servicer, Klarna, may place a temporary hold on your Preferred Payment Method in the amount of the monthly Membership Fee. If such initial temporary hold fails, we will try to place a temporary hold on one or more of your designated Back-Up Payment Methods. If such holds fail, we will attempt a temporary hold one more time in advance of your Membership Payment Due Date to ensure you have sufficient funds to pay your monthly Membership Fee by placing a temporary hold on your Preferred Payment Method or Back-Up Payment Methods. If this fails again, we will notify you that your payment due date is upcoming to ensure you have an appropriate payment method designated for your Klarna Membership payment. If the temporary hold is successful on your Preferred Payment Method, we will charge your Preferred Payment Method for that billing cycle on the due date. If the temporary hold fails on your Preferred Payment Method, but is successful on a Back-Up Payment Method, we will charge your Back-Up Payment Method for that billing cycle on the due date. We will revert to charging your Preferred Payment Method by default in subsequent billing cycles. Changes to Preferred Payment Method: Your Preferred Payment Method can be changed, modified or terminated in the Klarna App. Correction of Errors: You authorize our servicer, Klarna, to debit or credit your Preferred Payment Method as necessary to correct any error made in processing a payment on or after the date such error occurs; or if there is any missing or erroneous information with respect to your Payment Method or the associated financial institution, you authorize us and our servicer, Klarna, to verify and correct such information. Rejected and Reinitiated Payments: Unless otherwise limited by law, if any payment from your Preferred Payment Method is rejected or otherwise returned unpaid, you authorize our servicer, Klarna, to reinitiate it up to two additional times. However, you agree that there is no obligation to reinitiate any rejected charges or debits. You understand that your financial institution or card issuer may impose fees in connection with rejected charges or debits, and you agree that we and Klarna do not have any liability to you for such fees. Back-Up Payment Method: If you have designated a Back-Up Payment Method and our servicer, Klarna, is unable to process you Membership Fee payment using your Preferred Payment Method because your Preferred Payment Method has insufficient funds, has expired, or has been removed from Your Klarna account (a “Failed Payment”), you authorize Klarna to initiate up to two additional payments for each Failed Payment using the Back-Up Payment Method on or after the date of the Failed Payment in the amount of the Failed Payment instead of seeking such Membership Fee payment from the Preferred Payment Method. Future recurring Membership Fee payments will continue to be debited or charged from your Preferred Payment Method unless and until You change your Preferred Payment Method, subject to the terms of this section. ## 5. Renewal and Termination a. Renewal: Your Membership will continue and automatically renew until termination by you or us. You may terminate your Membership in the Klarna mobile application (“Klarna App”) in your Membership account settings or by any other method we make available. Termination of your Membership will not affect any repayment obligations you may have with respect to a loan or transaction. We may terminate your Membership or otherwise cancel or limit this Agreement at any time for any reason or no reason, and without notice to you, subject to applicable law. If you or we terminate your Membership, you agree that neither we nor our servicer, Klarna, will have any liability or responsibility to you, except as provided for under this Agreement. b. Termination: If you cancel, termination of your Membership will take effect on the last day of the billing cycle during which you cancel. For example, if your billing cycle ends on the 15th of a given month and you cancel on the 10th, you will continue to receive Membership benefits through the 15th of that month. c. No Membership Fee or Promotional Fee Period of Access to a Klarna Membership: Your Membership may start with a promotional period of access where no Membership Fee or a reduced promotional monthly fee is charged (“Promotional Period of Access”). Such Promotional Periods of Access are subject to availability and not every Membership may qualify. If you do qualify, the Promotional Period of Access only applies the first time your enroll in Klarna Membership (one per person), unless we tell you otherwise–We reserve the right to offer Promotional Periods of Access in our sole discretion. The specific duration of any Promotional Period of Access will be specified at the point of sign-up for Klarna Membership. If you have a Promotional Period of Access, you will be charged normal Membership Fees listed above after the end of your Promotional Period of Access, and you should cancel your Membership before the expiration of the Promotional Period of Access if you wish to avoid any normally charged Membership Fees. Please note that you may not be notified that your Promotional Period of Access is ending or has ended and that your period of paid Membership has started. ## 6. Changes 6.1. Changes to this Agreement: Subject to applicable law, we may from time to time make changes to this Agreement for any reason or no reason, and in any respect, by adding, deleting, or modifying any provision, including any Membership Rewards for your Klarna Membership, the Membership Fee, and/or any other terms. In certain circumstances, if we are required by law to notify you of changes to the terms of this Agreement, we will do so. If you wish to avoid an upcoming Membership Fee, you should cancel your Membership before the start of the next billing cycle in the Klarna App before the end of the calendar day preceding the start of your next billing cycle. 6.2. Changes by you to your Klarna Membership tier (Upgrades and Downgrades): You may request to upgrade, downgrade, or cancel your Klarna Membership through the Klarna App. Downgrades and cancellations will take effect at the end of your current billing cycle for your Klarna Membership, meaning you will continue to receive your current plan benefits until the end of the period you have already paid for. Upgrades take effect immediately when you pay the fee for your upgraded Membership. Changing plans will not retroactively refund fees paid under a previously active plan; if you downgrade or cancel, you will simply retain access to your current plan’s benefits until the end of the paid period, without any additional refund or credit for that period. If you upgrade, you are responsible for paying any increase in the Membership Fee associated with the new plan (we will inform you of all charges at the time of upgrade). 6.3. Downgrading or Cancelling your Klarna Membership: If at any time you determine that your current Klarna Membership does not meet your needs, you may change to a different plan with a lower subscription price, subject to approval and applicable terms (the “Downgrade”), or simply cancel your Membership. Metal Card Fee if you downgrade or cancel within 6 months: If you have ordered a physical metal Klarna Card, and downgrade to a Plus or Core tier membership or cancel before the times described below have elapsed, we may charge you a fee for the cost of the physical card (“Metal Card Fee”). Sometimes we may waive a Metal Card Fee. If we do, we may ask you to agree to certain conditions (for example, not cancelling your new selected plan tier within a certain period when you downgrade). Whether or not to waive a fee is our decision, and we will tell you if a waiver applies. The fees and rules for downgrading and cancelling are set out below. If you downgrade or cancel within 6 months of signing up: - Plastic Card (Core or Plus tiers): No fee. We may deactivate your card. - Metal Card (Premium or Max tiers): We will charge a $50 Metal Card Fee which will be reduced by $8 for each month of active Membership, but you may continue to use your Metal Card. For example, if you order a physical metal card and cancel your membership during your fourth month of membership, we will charge a $26 Metal Card Fee. If you downgrade or cancel after 6 months of signing up: - Plastic Card (Core or Plus tiers): No additional charges. You may continue to use your card. - Metal Card (Premium or Max tiers): No additional charges. You may continue to use your card. - If you have received a card over the past 12 months, downgrade or cancel and then re-enroll and request a new card as a Membership benefit, you may be charged a card replacement fee to receive a new physical card. For more information on card replacement fees see Balance Deposit Account Disclosures. + If you have received a card over the past 12 months, downgrade or cancel and then re-enroll and request a new card as a Membership benefit, you may be charged a card replacement fee to receive a new physical card. For more information on card replacement fees see Klarna Personal Account Disclosures. 6.4. Changes to your Membership Rewards Benefits We may change the available Membership Rewards and information in the Membership Rewards Benefits Summary. The following are included in the types of changes we may make (but we may make other changes not listed here): - change the Membership Rewards available to you; - change the partners who offer you Membership Rewards or the terms and conditions of such offers; We can make these changes for any reason or no reason subject to applicable law. These changes may be prompted by something one of our Rewards Partners has done. 6.5. Notice of Changes to your Membership Rewards We will usually give you at least 30 days' notice before making a change to your Membership Rewards if we believe the change is disadvantageous to you. An example of a disadvantageous change would be where we significantly reduce the range or types of Membership Rewards available so that your choice is much more limited than before. If the change is beneficial to you, we will still tell you about it but we may make the change before we do so. We will give you any such notice by sending an email to the email address associated with your Klarna account. If you are not happy with any changes that we make, you may cancel your Membership at any time in the Klarna App subject to any applicable Fees. ## 7. Credit Benefits and Certain Bank Account Benefits Subject to Approval 7.1. All Extensions of Credit Subject to Approval and Credit Agreement: Your Membership does not guarantee you will be approved for any extension of credit. Any extension of credit you obtain is subject to approval at the time you apply for such credit and will be underwritten separately. Your Membership does not entitle you to access a specific amount of credit or credit at any specific intervals. For an estimate of the amount of credit you can spend, use the Klarna App to view your Purchase Power. Any extension of credit you obtain is governed by the credit agreement that is provided to you separately from this Agreement, and that you sign electronically, at the time such credit is extended. 7.2. Klarna Savings Account APY Booster subject to approval for Klarna Savings Account. The term ”Klarna Savings Account” in these terms refers to the Klarna Savings Account issued by WebBank, member FDIC, for which you must separately apply for enrollment, and which is subject to the Klarna Savings Account Agreement. Your Membership does not guarantee you will be approved for a Klarna Savings Account, which is required to obtain the Klarna Savings APY booster as referenced below and in the Membership Rewards Benefits Summary. Your eligibility for a Klarna Savings Account will be assessed separately. You can apply for a Klarna Savings Account in the Klarna App. ## 8. Membership Rewards Benefits As part of your Klarna Membership, you will be entitled to receive Klarna Membership Rewards Benefits (“Membership Rewards”) as described in this Agreement and in detail in the separate Membership Rewards Benefits Summary which is incorporated herein by reference. The Membership Rewards Benefits Summary contains important information including additional terms and conditions regarding specific Membership Rewards. Please review them carefully as they contain important information about how to ensure you can use your Membership Rewards. Misuse, fraudulent use, or otherwise improper use of any Klarna Membership Reward may result in immediate termination of your Membership in our sole discretion. ## 9. Information Sharing You consent to WebBank and Klarna sharing your personal information with one another and with our partners in connection with your Membership and to use such information for any lawful purpose. ## 10. Military Lending Act The Military Lending Act provides protections for certain members of the Armed Forces and their dependents ("Covered Borrowers"). The provisions of this section apply only to Covered Borrowers. a) Statement of Military APR: Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit. In general, the cost of consumer credit to a member of the Armed Forces and his or her dependent may not exceed an annual percentage rate of 36 percent. This rate must include, as applicable to the credit transaction or account: The costs associated with credit insurance premiums; fees for ancillary products sold in connection with the credit transaction; any application fee charged (other than certain application fees for specific credit transactions or accounts); and any participation fee charged (other than certain participation fees for a credit card account). b) Oral Disclosures: Covered Borrowers may receive important disclosures and payment obligation information about this Agreement verbally by calling us toll free at 866-483-6518. ## 11. Governing Law This Agreement and your Membership will be governed by federal law applicable to a FDIC-insured institution and, to the extent not preempted by federal law, the law of Utah, without regard to its choice of law provisions, including any applicable statutes of limitations. You agree that this Agreement is entered into between you and us, and received by us, in Utah and we extend credit to you from Utah, whether or not you live in Utah. We will make the decision whether to extend a Membership to you based on criteria established in Utah. ## 12. Waiver We may delay or waive enforcing their respective rights under applicable law or this Agreement without losing them. A waiver of rights by us shall not be deemed to be a waiver of other rights or of the same rights at any other time. ## 13. Transfer of Membership Prohibited; Assignment You cannot transfer or assign your Membership or your rights under this Agreement to any other person, and any attempt to do so is automatically void and of no legal effect. Subject to applicable law, we may assign any rights or obligations we have under this Agreement, in whole or in part, to any third party. ## 14. Change of Contact Information You agree to notify us promptly if you change your name, address, telephone number or any other contact information. For purposes of determining your state of residency or physical location, you agree that we may rely on any information about you that we obtain from the Klarna platform or otherwise, including other applications for credit, purchase and order history, and information obtained from a consumer reporting agency. You also agree that if the U.S. Postal Service or one of its agents notifies us of a change in address for you, we may change your address based on this information. We will have no liability to you for changing your address based on such information, even if the information provided by the U.S. Postal Service or one of its agents is in error. ## 15. Enforceability Subject to and except as otherwise provided in the Arbitration Provision, if any term of this Agreement is finally determined to be void or unenforceable by a court or government agency of competent jurisdiction, that term will be enforceable to the extent allowed by such court of agency, and the remainder will no longer be a part of this Agreement. All other provisions of this Agreement will remain in effect. ## 16. Survival This following terms of this Agreement will survive the termination of this Agreement or any agreement you have with the WebBank/Klarna Parties: Sections, 11 (Information Sharing), 14 (Governing Law), 15 (Transfer of Membership Prohibited, Assignment), 17 (Enforceability), and 20 (Arbitration Agreement). ## 17. Agreement in Writing This Agreement is the final expression of the agreement between you and us, and it may not be contradicted by evidence of an alleged oral agreement. ## 18. Arbitration PLEASE READ THIS ARBITRATION PROVISION CAREFULLY. UNLESS YOU (1) ARE SUBJECT TO THE PROTECTIONS OF THE MILITARY LENDING ACT OR (2) OPT OUT IN ACCORDANCE WITH THE PROCEDURES DESCRIBED BELOW, IT WILL HAVE A SUBSTANTIAL EFFECT ON YOUR RIGHTS, INCLUDING YOUR RIGHT TO BRING OR PARTICIPATE IN A JURY TRIAL OR A CLASS ACTION. - 18.1. Scope of Provision. Except as set forth in Section 18.2, you agree that any and all past, present, or future disputes or claims, including without limitation (a) federal and state regulatory and statutory claims, (b) common law claims, (c) claims under local ordinances, (d) data breach or privacy claims and (e) claims based in contract, tort, intentional tort, fraud, misrepresentation or any other legal theory, arising out of or relating to this Agreement, your Klarna Savings Account, Klarna Balance account and Klarna Debit Flex card, loans, purchases or payments you make, transactions you engage in, collection of amounts due, or the corresponding relationship between you, on the one hand, and WebBank and/or Klarna Inc., and their agents, employees, officers, directors, predecessors in interest, and successors and assigns (for purposes of this section, collectively the “WebBank/Klarna Parties”), on the other hand (collectively, (“Dispute(s)”)) – at the election of either you or us – be resolved exclusively through final and binding arbitration, as set forth in this section (“Arbitration Provision”), rather than in court, before a judge or a jury. This Arbitration Provision is also binding upon and may be enforced by any third party who is named as a co-defendant with us in a claim asserted by you. + 18.1. Scope of Provision. Except as set forth in Section 18.2, you agree that any and all past, present, or future disputes or claims, including without limitation (a) federal and state regulatory and statutory claims, (b) common law claims, (c) claims under local ordinances, (d) data breach or privacy claims and (e) claims based in contract, tort, intentional tort, fraud, misrepresentation or any other legal theory, arising out of or relating to this Agreement, your Klarna Savings Account, Klarna Personal account and Klarna Debit Flex card, loans, purchases or payments you make, transactions you engage in, collection of amounts due, or the corresponding relationship between you, on the one hand, and WebBank and/or Klarna Inc., and their agents, employees, officers, directors, predecessors in interest, and successors and assigns (for purposes of this section, collectively the “WebBank/Klarna Parties”), on the other hand (collectively, (“Dispute(s)”)) – at the election of either you or us – be resolved exclusively through final and binding arbitration, as set forth in this section (“Arbitration Provision”), rather than in court, before a judge or a jury. This Arbitration Provision is also binding upon and may be enforced by any third party who is named as a co-defendant with us in a claim asserted by you. 18.2. Exceptions to Arbitration. a. If any party contends that the amount of a claim in a Dispute is within the jurisdiction of the small claims court (or an equivalent court), it may instruct the administrator to administratively close the arbitration case, prior to payment of fees, and direct that the claim be filed, if at all, in small claims court. Upon such a request by a party, the arbitration provider shall administratively close the arbitration proceeding. Any dispute about whether a claim qualifies for small claims court shall be resolved by that court, not by an arbitrator. In the event of any such dispute, the arbitration proceeding shall remain closed unless and until a decision by the small claims court that the small claims court lacks jurisdiction over the action. Only in the event that the small claims court determines that it lacks jurisdiction over the Dispute may the arbitration provider reopen the arbitration case. You and we acknowledge that failure to comply with the provisions of this Section 18.2 would irreparably harm the party requesting administrative closure of the arbitration proceeding, and you and the WebBank/Klarna Parties agree that a court may issue an order staying the arbitrations (and any obligation to pay arbitration fees) until any disagreements over the provisions of this Section 18.2 are resolved by the court. You and we do not have to arbitrate a small claim that is filed in small claims court, but if that claim is transferred, removed, or appealed to a different court, you or we may elect to compel arbitration. Moreover, if you or we bring any counterclaim or cross-claim that is for more than the small claims court’s jurisdiction, you or we can elect to have the entire claim (including the counterclaim or cross-claim) resolved by arbitration. b. This Arbitration Provision shall not apply to transactions subject to the Military Lending Act involving covered borrowers, as defined in the Act. Thus, if your claim involves a covered transaction under the Military Lending Act, this Arbitration Provision will be inapplicable to such claim. 18.3. This Arbitration Provision shall be broadly construed and any dispute or arbitration hereunder will be governed by the Federal Arbitration Act (“FAA”), federal law, and the laws of the State of Utah as provided in the “Governing law, venue” section of the Agreement, without regard to principles of conflict of law, including any applicable statutes of limitations. The arbitrator’s award shall be final and binding, except for any appeal rights under the FAA, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Any arbitration shall be confidential, and neither you nor we may disclose the existence, content or results of any arbitration, except as may be required by law or for purposes of enforcement of the arbitration award. 18.4. Waiver of Jury Trial. IF A DISPUTE IS ARBITRATED, THE PARTIES WAIVE THEIR RIGHT TO RESOLVE THE DISPUTE IN COURT BEFORE A JUDGE OR A JURY. IF FOR ANY REASON A DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER AGREEMENT YOU HAVE WITH THE WEBBANK/KLARNA PARTIES OR THE RELATIONSHIP BETWEEN YOU AND THE WEBBANK/KLARNA PARTIES PROCEEDS IN COURT RATHER THAN IN ARBITRATION, YOU AND THE WEBBANK/KLARNA PARTIES EACH WAIVE ANY RIGHT TO A JURY TRIAL TO THE FULL EXTENT PERMITTED BY APPLICABLE LAW. There is no judge or jury in arbitration, and court review of an arbitration award is subject to very limited review. 18.5. NO CLASS OR MASS ACTION (“Class and Mass Action Waiver”) YOU AND THE WEBBANK/KLARNA PARTIES AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY ON AN INDIVIDUAL BASIS AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS, CONSOLIDATED OR REPRESENTATIVE ACTION OR PROCEEDING. UNLESS BOTH YOU AND THE WEBBANK/KLARNA PARTIES AGREE OTHERWISE IN WRITING, AND EXCEPT AS PROVIDED IN SECTION 18.8(F), THIS ARBITRATION WILL PRECLUDE YOU FROM BRINGING ANY CLASS, COLLECTIVE, COORDINATED, CONSOLIDATED, MASS AND/OR REPRESENTATIVE ACTION AGAINST THE WEBBANK/KLARNA PARTIES, AND WILL ALSO PRECLUDE YOU FROM PARTICIPATING IN OR RECOVERING RELIEF IN ANY CURRENT OR FUTURE CLASS, COLLECTIVE, COORDINATED, CONSOLIDATED, MASS AND/OR REPRESENTATIVE ACTION BROUGHT AGAINST THE WEBBANK/KLARNA PARTIES BY SOMEONE ELSE. EXCEPT AS SET FORTH IN SECTION 18.8(F), THE ARBITRATOR MAY NOT CONSOLIDATE OR JOIN MORE THAN ONE PERSON’S OR PARTY’S CLAIMS AND MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF A CONSOLIDATED, REPRESENTATIVE, OR CLASS PROCEEDING. THE ARBITRATOR MAY AWARD RELIEF (INCLUDING MONETARY, INJUNCTIVE, AND DECLARATORY RELIEF) AVAILABLE IN AN INDIVIDUAL LAWSUIT ONLY EXCEPT AS SET FORTH IN SECTION 18.8.F BELOW. 18.6. Initial Dispute Resolution. Before submitting a claim for arbitration in accordance with this Arbitration Provision, you and we agree to try, for 60 days, to resolve any Dispute informally. Any party wishing to bring a claim agrees to provide a notice of the Dispute (“Notice of Claim”) to the other parties, which shall include the sender’s name, address and contact information, the facts giving rise to the Dispute, and the relief requested. The Notice of Claim shall be an individualized claim specific to the individual bringing the claim. Any Notice of Claim to the WebBank/Klarna Parties shall be sent to: noticeofclaim.us@klarna.com from the primary email address associated with your account. The WebBank/Klarna Parties will not respond to any emails sent to this email address that do not relate to a Notice of Claim. Any Notice of Claim sent to you will be sent to the most recent email address the WebBank/Klarna Parties have recorded for you. To minimize the cost and inconvenience to all parties, and to promote prompt resolution of Disputes, you and we agree that engaging in this initial dispute resolution process is a material term of this Agreement and a requirement that must be fulfilled before commencing any arbitration. You and we agree to act in good faith to resolve the Dispute before commencing arbitration in accordance with this Section 18.6. 18.7. Compliance with Section 18.6. You and we agree that arbitration (as well as any obligation to pay arbitration fees) shall be stayed until the initial dispute resolution process in Section 18.6 is complete. You and we acknowledge that any party’s failure to comply with the provisions of this Section 18.7 would irreparably harm the other, and you and we agree that a court may issue an order staying arbitration (and any obligation to pay arbitration fees) until the initial dispute resolution process in Section 18.6 is complete. 18.8. Arbitration Procedure. (a) If you or we elect to arbitrate a claim, it will be resolved by mandatory binding arbitration. Arbitration is more informal than a lawsuit in court. Arbitration uses a neutral arbitrator instead of a judge or jury, discovery is more limited, and court review of an arbitration award is very limited. However, an arbitrator will follow applicable substantive law consistent with the FAA and give effect to applicable statute of limitations, defenses and privileges. The arbitrator can award the same damages and relief on an individual basis that a court can award to an individual, including monetary damages, punitive damages (subject to constitutional limits that would apply in court), attorneys’ fees and costs and individual injunctive or declaratory relief. An arbitrator also must follow this Agreement or any other agreement you have with the WebBank/Klarna Parties as a court would. (b) A claim may be submitted to binding arbitration at any time, regardless of whether you or we have previously initiated any lawsuit or other proceeding. If a party files a lawsuit in court asserting initial claims, counterclaims, cross-claims or third-party claims that are subject to arbitration and the other party files a motion to compel arbitration with the court which is granted, it will be the responsibility of the party asserting the claim(s) to start the arbitration proceeding in accordance with the administrator’s rules and procedures. Even if all parties have opted to litigate a claim in court, you or we may elect arbitration with respect to any claim made by a new party or any claim later asserted by a party in that or any related or unrelated lawsuit (including a claim initially asserted on an individual basis but modified to be asserted on a class, representative or multi-party basis). Nothing in that litigation shall constitute a waiver of any rights under this Arbitration Provision. (c) Except as set forth Section 18.8(F), the arbitration will be conducted by FedArb under its rules and procedures. FedArb’s rules are available at https://www.fedarb.com. A form for initiating arbitration proceedings is available on FedArb’s website at https://www.fedarb.com/arbitration-submission-forms/. The arbitrator must be a retired judge or attorney with more than 10 years of experience. If FedArb cannot serve, the parties may agree on another administrator or arbitrator in writing. Absent such written agreement, a court with jurisdiction will select the administrator or arbitrator. Any administrator or arbitrator selected by the parties or a court will be bound by the terms of this Arbitration Provision. (d) The arbitration shall be held in a location reasonably convenient to where you reside or at another mutually agreed upon location. Attendance at an in-person hearing may be made by telephone by you and/or the other party, unless the arbitrator requires otherwise. No arbitration award involving the parties will have any preclusive effect on any issues or claims in any dispute involving anyone who is not a party to the arbitration, nor will an arbitration award in prior disputes involving other parties be preclusive of any issues or claims in an arbitration between the parties to this Arbitration Provision. (e) Expedited Arbitration. If the value of the relief sought is $10,000 or less, either you or we may elect to resolve the dispute under FedArb Rule 16 (Expedited Disposition), with administration by FedArb, provided, however, that such rules shall be modified as follows: (i) Tribunal. The tribunal shall consist of a single arbitrator selected from FedArb’s list of panelists, unless the parties agree on three arbitrators, selected in accordance with the FedArb Rules. (ii) Deadlines. No party may ask the tribunal, and no arbitrator may ask the parties, for an adjournment of any deadline; adjournments may only be implemented as agreed by all parties, or for good cause as determined by the FedArb administrator. (iii) Place of Arbitration. Arbitrations shall be held at a venue that minimizes costs; telephonic or video hearings will be utilized whenever possible (iv) Procedural Order and Timetable. As soon as practicable, and no later than 30 days after Respondent’s Answer is filed, the tribunal shall confer with the parties and issue a procedural order and timetable that reserves agreed dates for the hearing on the merits and such preliminary deadlines as may be appropriate. There are to be no motions to enforce discovery requests, to dismiss, for summary judgment, or for any other form of relief except (1) by agreement of all parties, or (2) upon a determination by the tribunal that the motion is necessary and likely to enhance efficiency. (v) Documentary Discovery. All parties shall provide discovery of nonprivileged documents relevant to any party’s claim or defense and proportional to the needs of the case (as measured by the standards set forth in Federal Rule of Civil Procedure 26(b)) within 45 days of the final pleading; only documents produced in discovery shall be permitted to be introduced into evidence absent a showing that the document was unavailable for earlier production. (vi) Requests for Admissions Prohibited. The parties shall submit an Agreed Statement of Facts at least thirty days before the hearing. (vii) Depositions. No depositions shall be held except by agreement of the parties, or upon a showing that the interests of justice require the pre-hearing testimony of a particular witness. (viii) Expert Discovery. Experts shall be used only on issues requiring expert testimony, and only upon agreement; expert testimony shall be provided in writing, at least 30 days in advance of the hearing, and an expert’s oral testimony shall be limited to the scope of the expert’s written testimony. (ix) Pre-hearing Briefs. The parties shall file pre-hearing briefs only if they agree such briefs are necessary, and with the tribunal’s approval on such conditions as to scope and length as the tribunal considers appropriate. (x) Exhibits. The parties shall file a single set of all the exhibits they agree should be admitted into evidence. All other exhibits shall be party-designated. Paper copies shall be filed only as required by the tribunal, which shall be provided with digital versions of all papers and exhibits in a convenient format. (xi) Hearing. The hearing shall be recorded in an economical manner, and transcripts will be ordered only as required by the parties or tribunal. Hearing time shall be divided equitably among the parties, unless otherwise agreed. (xii) Post-hearing Briefs & Oral Argument. Post-hearing briefs shall be filed only on agreement by the parties and with the tribunal’s consent; they shall generally be considered unnecessary where the parties have filed pre-hearing briefs. Oral argument shall be held whenever possible as a substitute for briefing and as promptly after the close of the hearing as possible. (xiii) Award. The parties shall agree on the form of award no later than the completion of the hearing. An Award may be formal (including findings of fact and conclusions of law), reasoned (setting out the tribunal’s reasoning in a logical but informal manner, or conclusory (setting out the tribunal’s conclusions without reasoning). In the absence of agreement, the Award shall be reasoned. The tribunal may issue partial final awards where necessary. (xiv) Finality. The parties agree that the Award (or awards) shall be final, except as provided in the Federal Arbitration Act and other governing authorities, and that they waive any right to a trial by jury. The parties may agree at any time during the arbitration process on a right to appeal to a panel of FedArb arbitrators as provided in FedArb Rule 12. (f) Initiation of Mass Arbitration. If 20 or more demands for arbitration are filed relating to the same or similar subject matter, and counsel for the parties submitting the demands are the same or coordinated, you and we agree that this will constitute a “Mass Arbitration.” (i) If a Mass Arbitration is commenced, you and we agree that it shall be governed by FedArb’s Rules, including FedArb’s Framework for Mass Arbitration Proceedings ADR-MDL, available at https://www.fedarb.com/, but excluding any rules that permit arbitration on a class-wide basis (the “FedArb Rules”), and under the rules set forth in this Agreement. The FedArb Rules are available at https://www.fedarb.com/ or by calling 1-650-328-9500. (ii) Before any Mass Arbitration is filed with FedArb, you and we agree to contact FedArb jointly to advise that the parties intend to use FedArb’s Framework for Mass Arbitration Proceedings ADR-MDL. The individual demands comprising the Mass Arbitration shall be submitted on FedArb’s claim form(s) and as directed by FedArb. (iii) Consistent with Section 18.7 above, you and the WebBank/Klarna Parties agree that if either party fails or refuses to commence the Mass Arbitration before FedArb, you or the WebBank/Klarna Parties may seek an order from a court of competent jurisdiction compelling compliance with this Section 18.8.(F) and compelling administration of the Mass Arbitration before FedArb. Pending resolution of any such requests to a court, you and we agree that all arbitrations comprising the Mass Arbitration (and any obligation to pay arbitration fees) shall be stayed. You and the WebBank/Klarna Parties acknowledge that either party’s failure to comply with the provisions of this Section 18.8(F) would irreparably harm the other, and you and the WebBank/Klarna Parties agree that a court may issue an order staying the arbitrations (and any obligation to pay arbitration fees) until any disagreements over the provisions of this Section 18.8(F) are resolved by the court. 18.9. Attorneys’ Fees and Costs. The parties shall bear their own attorneys’ fees and fees and costs in arbitration in accordance with the applicable arbitration rules unless the arbitrator finds that either the substance of the Dispute or the relief sought in the claim was frivolous or was brought for an improper purpose (as measured by the standards set forth in Federal Rule of Civil Procedure 11(b)). If you or the WebBank/Klarna Parties need to invoke the authority of a court of competent jurisdiction to compel arbitration, then the party that obtains an order compelling arbitration in such action shall have the right to collect from the other party its reasonable costs, necessary disbursements, and reasonable attorneys' fees incurred in securing an order compelling arbitration. The prevailing party in any court action relating to whether either party has satisfied any condition precedent to arbitration, including the initial dispute resolution process in Section 18.6 and the mass arbitration process in Section 18.8(F), is entitled to recover their reasonable costs, necessary disbursements, and reasonable attorneys’ fees and costs. 18.10. Thirty (30) Day Opt-out Right. NOTWITHSTANDING THE FOREGOING, YOU MAY CHOOSE TO PURSUE YOUR CLAIM IN COURT AND NOT IN ARBITRATION IF YOU OPT OUT OF THIS ARBITRATION PROVISION WITHIN 30 DAYS FROM THE DATE YOU FIRST APPLY FOR THE ACCOUNT OR OTHERWISE ACCEPT THIS AGREEMENT (THE “OPT OUT DEADLINE”). YOU MAY OPT OUT OF THIS ARBITRATION PROVISION BY FULLY COMPLETING, SIGNING AND DATING THE ARBITRATION OPT-OUT NOTICE FORM LOCATED AT http://cdn.klarna.com/1.0/shared/content/legal/en_us/arbitration/opt_out_notice_credit.pdf AND MAILING IT VIA FIRST-CLASS MAIL AT THE FOLLOWING ADDRESS: Klarna Inc., Attn: Arbitration Opt-Out 800 N. High St., Ste 400 Columbus, Ohio 43215 f. ANY ARBITRATION OPT-OUT NOTICE RECEIVED AFTER THE OPT-OUT DEADLINE WILL NOT BE VALID AND YOU MUST PURSUE YOUR CLAIM IN ARBITRATION OR SMALL CLAIMS COURT. g. IF YOU DO NOT OPT OUT BEFORE THE OPT OUT DEADLINE, THIS ARBITRATION PROVISION WILL BE PART OF ALL OTHER AGREEMENTS YOU HAVE WITH US NOW OR IN THE FUTURE. IF YOU DO OPT OUT BEFORE THE OPT OUT DEADLINE, ALL OTHER AGREEMENTS YOU HAVE WITH US NOW OR IN THE FUTURE WILL NOT BE SUBJECT TO THIS ARBITRATION PROVISION. 18.11. Prior Arbitration Provision. If there is an Arbitration Provision in place (a “Prior Arbitration Provision”) governing a prior agreement between you and the WebBank/Klarna Parties (a “Prior Agreement”) and you do not reject this Arbitration Provision, claims arising out of the Prior Agreement will be governed by this Arbitration Provision instead, unless you (i) previously opted out of arbitration or (ii) served notice of your claims on the WebBank/Klarna Parties or initiated a lawsuit or arbitration against the WebBank/Klarna Parties asserting your claims prior to the effective date of this agreement in which case such claims will be governed by the Prior Agreement. 18.12. Survival, Conflict, Severance. This Arbitration Provision will survive the termination of any agreement you have with the WebBank/Klarna Parties and any bankruptcy. In the event of any conflict or inconsistency between this Arbitration Provision, on the one hand, and the administrator’s rules or the Agreement or other agreement you have with the WebBank/Klarna Parties, on the other hand, this Arbitration Provision will govern. If any part of this Arbitration Provision is found to be invalid or unenforceable, then that specific part shall be severed, and the rest of this Arbitration Provision will continue in full force and effect, except that either you or we may elect to have the entire Arbitration Provision (other than this sentence) be null and void with respect to any claim asserted on a class, representative or multiple-party basis that does not seek public injunctive relief if the Class and Mass Action Waiver is held to be invalid with respect to such claim and that determination becomes final after all appeals have been exhausted. If a court decides by means of a final decision, not subject to any further appeal or recourse, that the Class and Mass Action Waiver is invalid or unenforceable as to a particular claim or request for relief (such as a request for public injunctive relief), that particular claim or request for relief (and only that particular claim or request for relief) shall be severed from the arbitration and may be litigated in the state or federal courts. All other disputes shall be arbitrated or litigated in small claims court. 18.13. Future Changes to this Arbitration Provision. Notwithstanding any provision in this Agreement or any other agreement you enter into with the WebBank/Klarna Parties to the contrary, you and the WebBank/Klarna Parties agree that if we make any change to this Arbitration Provision (other than a change to any notice address or website link provided herein) in the future, that change shall not apply to any claim that was filed in a legal proceeding against the WebBank/Klarna Parties prior to the effective date of the change. 19. Customer Support: If you have questions or concerns about your Membership, Membership Benefits or anything else relating to this Agreement, contact our servicer Klarna at (888) 518-2771 or use the Customer Service chat feature in the Klarna App. ## 20. Additional Disclosures: CA/NY/RI/UT/VT Residents: You give WebBank and its agents, successors, and assigns permission to obtain one or more consumer credit reports from one or more credit reporting agencies in connection with any transaction, or extension of credit, and on an ongoing basis, for the purpose of reviewing the account created by this Agreement, taking collection action on this Agreement, or for any other legitimate purposes associated with this Agreement. Upon your request, you will be informed of whether or not a consumer credit report was ordered, and if it was, you will be given the name and address of the consumer reporting agency that furnished the report. As required by law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations. CA Residents: A married applicant may apply for a separate account. MA Residents: Massachusetts law prohibits discrimination based upon marital status, sexual orientation, and gender identity. NJ Residents: The section headings of the Agreement are a table of contents and not contract terms. Portions of this Agreement with references to actions taken to the extent of applicable law apply to acts or practices that New Jersey law permits or requires. OH Residents: The Ohio laws against discrimination require that all creditors make credit equally available to all creditworthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil Rights Commission administers compliance with this law. UT Residents: NO CLASS ACTIONS. YOU AGREE AND ACKNOWLEDGE THAT PURSUANT TO UTAH CODE ANN. § 70C-4-105 YOU ARE WAIVING YOUR RIGHT TO INITIATE OR PARTICIPATE IN A CLASS ACTION RELATED TO THIS AGREEMENT.

Regional impact

EUHigh

The policy's broad data sharing and mandatory arbitration clauses could conflict with GDPR principles, especially regarding explicit consent and consumer rights.

USHigh

The mandatory arbitration and class action waiver significantly limit individual legal recourse, though a 30-day opt-out is provided.

GlobalHigh

Users globally face limitations on legal recourse due to mandatory arbitration and broad data sharing, which may conflict with local consumer protection laws.

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