Just saw this new feature today and I must say that I love it. This pretty much is equivalent to PayPal and allows me to do all my client billing through Upwork. I really do not like to bill clients through PayPal, it is always "strange" feeling to do so - I never trust PayPal to help me in case of any issue will come up with a new client, not sure why, but it always felt strange to do business for a freelancer through PayPal while offering an Upwork escrow service allows me to use Upwork credibility factor, linked to my profile and other clients projects and feedback.
Would be nice to get a slightly lower fee for it though - 3.4% is a bit steep since in fact, I am introducing a client to the Upwork system and Upwork will benefit from it when the client will surely join in or at least consider to join in to Upwork at a certain time if everything goes smooth after our project.
Also, I think the fee should be using a cost-based levels. For example, up to $500 will have 2.5% fee, up to $5000 should have a lower fee, maybe 1.5% and over $10,000 will be 0.5% fee as when getting to high profile clients/contracts and especially ongoing projects with monthly billings for many years, those projects costs are massive and have the same cost percentage in terms of Upwork fee, start to feel too steep.
I am just wondering as it was not clear if the 3.4% fee is charged to my account as I create a new contract or it is deducted from the final fund release as it is with other Upwork projects. Anyone has any idea or any admin here knows the answer for that?
I am also wondering if there is anywhere where I can see the full process of the contract creation as it seems to be a step by step process and I can only see step 1. I would love to see how the whole process works in a video or at least screenshots to make sure I understand the process in full before adding the info of a non-upwork client.
Another important screenshot or video to see is how my client will see it and how my client process will look like. (from getting the notification mail and all through their escrow process)
Having everything be clear will help me a lot to start using this feature without worrying about my client reaction to it.
Freelancers are charged a 3.4% payment processing fee. For example, if your earnings are $100 you’ll be charged a payment processing fee of $3.40 USD. You are not charged a freelancer service fee, only the 3.4%. Clients also are not charged any fees. Please note that all transactions are in USD.
Thank you for your reply, Vladimir.
My question was different.
Am I been charged the fee from my account or this 3.4% fee is deducted from the escrow payment the client added?
In other words, am I been charged or my fee is been deducted from the full project cost at the end when the payment is realeased?