#emre-karabacak_api

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dense isleBOT
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heavy summit
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hi there ๐Ÿ‘‹ happy to help

for your questions about subscription management, I just want to confirm, are you integrating with Stripe Billing (i.e. the Subscriptions API) to manage the recurring payment creation, or will you handle recurring billing on your side, and simply integrate with Stripe for payments (i.e. using the PaymentIntents API directly)?

coral totem
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We will handle recurring payments on our side, we don't use Stripe Billing

heavy summit
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thanks for confirming - Klarna won't have visibility in the customer's subscription status/package in your system

what actions will you take in Stripe, after a customer cancels/downgrades 1 seat on your side, if any? for example, will you partially refund the Klarna transaction for that billing period?

coral totem
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We initiate a prorated refund on our side for the customer

heavy summit
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ok - issuing a partial refund will update the Klarna order to reflect the new total amount

what happens in Klarna after that depends on whether the partial refund amount is greater than the remaining balance of the order:

-if it's greater: Klarna will deduct the refund amount from the outstanding balance, and return the difference
-if it's less: Klarna will deduct the amount from the outstanding balance, and spread refunds evenly across the remaining payments

https://docs.stripe.com/payments/klarna#refunds

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for cancelling subscriptions, Klarna will not stop charging for installments automatically

it's important to remember, from Klarna's perspective, the original transaction is complete - Klarna paid you in full at the time of purchase; the installment plan is a credit agreement between Klarna and the customer

if you want to prevent installments from being billed on Klarna's side, you'd need to issue a full refund

coral totem
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So if there is a full refund, Klarna will stop charging and return money. If there is prorated refund that is less then original amount, installments will be charged but the new amount will be recalculated based on refund amount

heavy summit
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yes exactly

coral totem
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Thanks a lot

heavy summit
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any time!