diff --git a/packages/medusa-payment-klarna/src/services/klarna-provider.js b/packages/medusa-payment-klarna/src/services/klarna-provider.js
index 3f4f29d39c..edad067db5 100644
--- a/packages/medusa-payment-klarna/src/services/klarna-provider.js
+++ b/packages/medusa-payment-klarna/src/services/klarna-provider.js
@@ -102,7 +102,7 @@ class KlarnaProviderService extends PaymentService {
 
     order.order_lines = await this.lineItemsToOrderLines_(cart, region.tax_rate)
 
-    if (discount_total) {
+    if (discount_total > 0) {
       order.order_lines.push({
         name: `Discount`,
         quantity: 1,
@@ -113,6 +113,16 @@ class KlarnaProviderService extends PaymentService {
         total_amount: -discount_total * (1 + taxRate),
         total_tax_amount: -discount_total * taxRate,
       })
+    } else if (discount_total < 0) {
+      order.order_lines.push({
+        name: `Discount Payback`,
+        quantity: 1,
+        type: "surcharge",
+        unit_price: -discount_total * (1 + taxRate),
+        tax_rate: taxRate * 10000,
+        total_amount: -discount_total * (1 + taxRate),
+        total_tax_amount: -discount_total * taxRate,
+      })
     }
 
     if (gift_card_total) {