Klarna Pay in 3 and Klarna Financing works in exactly the same way as PayPal Pay in 3 and PayPal Credit. The seller is not effected in any way as the agreement is entirely between the buyer and Klarna. Any refund goes back to source (in this case Klarna/buyer's bank account) as normal.
Full details here:
https://www.ebay.co.uk/help/buying/paying-items/paying-klarna-installments?id=5338&st=3&pos=7&query=...
Refunds
If you receive a refund for your eBay purchase (e.g. because you returned an item), Klarna will refund the amount to your bank account and/or adjust your payment plan accordingly. This usually takes 5-7 business days.
Full refund:
Klarna will refund the installments you already paid and your payment plan will be cancelled. For example, if your purchase value is £100 and you have paid £50 so far, Klarna will refund you £50 and will not require any further payments.
Partial refund:
Depending on the amount of the refund and the number of installments you’ve already paid, Klarna can either refund you the amount and cancel your repayment plan, or adjust your repayment plan to the reduced purchase amount.
For example, if the purchase value of your order was £100 and you receive a partial refund of £30, your total amount to pay to Klarna will now be £70.
- If you previously paid £50.00, you will not receive a refund from Klarna. Instead, you'll only have to pay £20
- If you previously paid £75.00, Klarna will refund you £5 and won't take any further payments
Once a refund has been initiated on eBay, you'll receive an email from Klarna with details of your refund or changes to your payment plan. For more information on how to refund your bank account or your new payment plan please visit Klarna's website.
