Returning a Klarna or Afterpay Purchase: What Happens

By Hamid Ali, Founder of DebtShift · Updated October 21, 2026 · United States

You sent the item back. The app still says a payment is due Friday. Both companies explain why, and the fix is different for each.

Short answer: Returning an item does not cancel your plan by itself. With Klarna, payments pause once you report the return in the app, unless you only get store credit. With Afterpay, your schedule continues until the merchant processes the refund, though you can move a Pay in 4 payment date. Keep proof of return. Free help: NFCC at nfcc.org or 877-360-6322.

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Klarna and Afterpay side by side

	Klarna	Afterpay
Do payments stop?	Pause once you report the return in the app	Schedule continues until the merchant processes the refund
What you do	Return to the store, then tap Report return	Wait for the merchant to process; contact them if it stalls
Refund timing	Within 14 days after the store registers it, plus up to 14 days to your bank	3 to 5 days to show on your Afterpay order after the merchant refunds
Store credit only?	Payments are still due	Not covered on the help page we used, so ask the merchant before accepting store credit
If it drags on	After 21 days, submit tracking in the app	Move your next Pay in 4 date; contact the merchant

Sources: Klarna (returns, refund timing) and Afterpay (returns help). Policies change, so check the app before you rely on a date.

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On the day you return something

Keep the return receipt or tracking number until the store has refunded you.
Report the return in the Klarna app straight away, because that is what pauses payments.
With Afterpay, move the next Pay in 4 date if the merchant is slow, rather than letting a payment fail.
Check the app a few days later to see the updated balance.

If several plans are running at once, see our BNPL for groceries guide for the cost side and our BNPL and FICO guide for what a missed payment can do.

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A worked example: a £90 order returned in week two

Day	What happens	What you pay
0	You buy a £90 item with Klarna Pay in 3. The first £30 is taken.	£30
10	You post the item back and keep the receipt. You report the return in the Klarna app.	£0
14	The shop receives it. Your refund waits until the shop tells Klarna the return was accepted.	£0
30	The next £30 falls due. If the shop has not confirmed the return and Klarna has not paused it, it is still taken or chased.	£30 at risk
After refund	The shop confirms. Klarna refunds what you paid and cancels the rest.	£30 back

Which? reported in 2020 that you are expected to keep paying until a return is processed, and that Klarna paused payments once a return was reported in its app. Check the app today, because that guidance is six years old. Keep proof of postage and every email with the shop. Source: Which?, 28 November 2020.

Your protection depends on when you borrowed

If the agreement was made	What applies
Before 15 July 2026	Not regulated by the FCA. Which? reported in 2020 that Section 75 did not apply to buy now pay later.
From 15 July 2026	Regulated by the FCA. Lenders must check affordability and you can complain to the Financial Ombudsman Service. Section 75 may give you a refund route for faulty or undelivered goods.

Section 75 is about faulty or undelivered goods, not changing your mind. Your right to return an unwanted item still comes from the shop’s own policy and your consumer rights. Sources: FCA, Buy Now Pay Later.

Quick answers to the worries that keep you up

Do I keep paying Klarna after I return something?

Klarna says payments pause once you report the return in the app, while the store registers it and updates your invoice. But if you only receive store credit, such as a gift card, your Klarna payments are still due (Klarna).

Do I keep paying Afterpay after a return?

Afterpay says your original payment schedule stays in place until the merchant processes the refund or cancellation. For Pay in 4 orders you can move your next payment date to give the merchant more time (Afterpay).

How long does a Klarna refund take?

Klarna says the refund is processed within 14 days after the store registers your return, and funds can take up to 14 more days to reach your bank (Klarna). A full refund cancels remaining Pay in 4 payments.

How long does an Afterpay refund take?

Afterpay says merchants may take a few days to process a cancellation, mailed returns can take several days to be accepted, and after the merchant refunds you it may take 3 to 5 days to show on your Afterpay order (Afterpay).

What if the store never registers my return?

Klarna says that if the store has not registered the return correctly after 21 days, you can submit your tracking details and return date through the app. Keep copies of all correspondence (Klarna).

What if I only got a partial refund?

Klarna says a partial refund reduces your outstanding balance and is spread across your remaining Pay in 4 payments, or credited back if it exceeds the balance (Klarna). Check the app for your updated plan.

Where can I get free help with BNPL debt?

The NFCC offers free nonprofit credit counseling at nfcc.org or 877-360-6322 (NFCC).

Disclaimer: DebtShift is an educational platform operated by H Ali Logistics Ltd. This article is general education, not legal or financial advice. For free, nonprofit credit counseling, contact the National Foundation for Credit Counseling (NFCC) at nfcc.org or 877-360-6322.

Sources

Last reviewed October 2026