Klarna is an open invoice payment method and offers shoppers the option to pay for orders 14 days after delivery. This is their standard "Buy Now, Pay Later" payment option. At the moment of shipment, Klarna pays Adyen (upfront), thereby bearing the full risk. Klarna then needs to wait for the funds to be transferred by the shopper to them within those 14 days.
Because Klarna takes full risk, they also have full control in the process of accepting or refusing transactions. Based on several factors, such as shopper's profile, amount and market, Klarna's risk engine refuses the transaction whenever this engine believes the profile is too risky.
Unfortunately Adyen does not have any visibility in those profiles. We therefore always advise our merchants to block the Klarna payment method whenever the same shopper gets refused on a regular basis.
For more information, please visit https://www.klarna.com.