Direct Contracts makes it easy to get paid by your clients who don’t have a full account on Upwork and just need access to review your invoices and make payments. With Direct Contracts you also get the protection of escrow and if a dispute arises we will be happy to help. Also, 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 since your client and you will only be using Upwork for invoicing and payments, any Direct Contracts will not impact your Upwork reputation metrics (for example your Job Success Score or Top Rated status). These contracts also will not be included in your other Upwork profile stats, such as total earnings, number of jobs, etc.
I suggest that you take a look at this help article for more information.
I'm providing tutoring services to an international student. Because of the location issue, I'd like to set up a direct contract so that we can have a smooth payment process. Is it possible for a direct contract to be set up with a client who is an individual and not a business entity or agency?
I previously tried with Payoneer directly but as the funds weren't being transferred from a business account the processing was rejected. Paypal isn't a viable option either and I'm really trying to avoid the wire transder route.
Currently, Direct Contracts are only available to freelancers and their clients in certain countries. If you attempt to sign up and you or your client are not eligible due to the country you live in, you’ll see this message: “We’re sorry to inform you that Direct Contracts are currently not available in your country.” We hope to expand Direct Contracts to more countries in the future.