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Charging me to make a payment? Are you kidding?

Community Guru
Virginia F Member Since: Feb 15, 2016
111 of 118

Sharif, please, do tell us how to avoid the fees ... we like saving money.

Active Member
Annabel H Member Since: Sep 22, 2017
112 of 118

I am flabbergasted. In addition to charging the freelancers a solid percentage of their project fees, Upwork charges 2.75% interest to clients for the courtesy of paying those freelancers (clients who already pay their criedt card companies interest), AND, WORSE, DOES NOT INDICATE THIS UNTIL THEY ARE ABOUT TO HIRE someone and are entering their cc info.! I have never heard of such a thing and consider such a practice dishonest and predatory, and have written to the customer service icon to let them know. The sad part is, I will move forward with the freelancer, but even if I have a great experience, I will not be able to recommend Upwork because of this practice. Upwork should both reduce and be up front about their fees.

Community Guru
Joachim M Member Since: Mar 23, 2015
113 of 118

@Annabel H wrote:

I am flabbergasted. In addition to charging the freelancers a solid percentage of their project fees, Upwork charges 2.75% interest to clients for the courtesy of paying those freelancers (clients who already pay their criedt card companies interest), AND, WORSE, DOES NOT INDICATE THIS UNTIL THEY ARE ABOUT TO HIRE someone and are entering their cc info.! I have never heard of such a thing and consider such a practice dishonest and predatory, and have written to the customer service icon to let them know. The sad part is, I will move forward with the freelancer, but even if I have a great experience, I will not be able to recommend Upwork because of this practice. Upwork should both reduce and be up front about their fees.


 Annabel,

 

This is nothing new. And the practice is wide spread, nearly all other portals do the same. You will also see this at an increasing number of brick and mortar shops, most airlines also charge this fee. And, it is not interest, it is a fee. Exactly the same fee the credit card company is charging Upwork. The credit card companies don't work for free but charge all the shops accepting credit cards this fee.

Community Guru
Tiffany S Member Since: Jan 15, 2016
114 of 118

@Annabel H wrote:

I am flabbergasted. In addition to charging the freelancers a solid percentage of their project fees, Upwork charges 2.75% interest to clients for the courtesy of paying those freelancers (clients who already pay their criedt card companies interest), AND, WORSE, DOES NOT INDICATE THIS UNTIL THEY ARE ABOUT TO HIRE someone and are entering their cc info.! I have never heard of such a thing and consider such a practice dishonest and predatory, and have written to the customer service icon to let them know. The sad part is, I will move forward with the freelancer, but even if I have a great experience, I will not be able to recommend Upwork because of this practice. Upwork should both reduce and be up front about their fees.


Annabel, it sounds like maybe you're not aware that credit card companies charge a processing fee--a fee that can be as high as 4% plus a flat fee--to the merchant receiving payment. When a small transaction such as a $5 payment is processed, the fee on that transaction exceeds the $1 Upwork receives as a fee for that project. It's hard to see how it's "predatory" for Upwork to pass along the fee they are charged for processing your payment. 

 

If you were to pay your freelancer directly through a solution such as Strype or Paypal, one or the other of you would have to pay a fee for that transaction. It's hard to tell whether you aren't aware that freelancers you pay directly using a credit card have been absorbing that cost or you are just angry that the cost has been shifted to you rather than being charged to the freelancer as it is in many contexts, but in either case it's a fee charged by the vast majority of payment processers.

Community Guru
Rene K Member Since: Jul 10, 2014
115 of 118

Unfortunately, this happens every time you pay anything with a bank card, event at your grocery store. Most of the time you don't see it because it's already included in the price of the stuff you're buying. Upwork has decided to charge it separately instead of including it in the service fee.

 

I would have included it in the service fee so clients wouldn't complain.

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"Where darkness shines like dazzling light"   —William Ashbless
Community Guru
Tiffany S Member Since: Jan 15, 2016
116 of 118

@Rene K wrote:

 

 

I would have included it in the service fee so clients wouldn't complain.


 I would have assumed that most clients, being business people themselves, would have been well aware of this expense and unsurprised by it.

 

ETA: It's worth noting that if the $1 billion in business annually running through Upwork figure we've seen is near-to-accurate, Upwork absorbing those payment processing fees would cost the company close to $30 million/year. It's interesting that clients who are dissolving at the thought of paying an extra $12 to cover this fee think Upwork should seamlessly absorb $30 million in costs (thus reducing the company's revenues by nearly 1/3).

Active Member
Vamsi K Member Since: Sep 21, 2017
117 of 118

I am on upwork siSmiley Happynce 6 months, yet to land a gig, no worries, am getting steady business by writing articles and google sends me good, qualified leads... I use upwork community discussions to do time pass and its free, so can't complain - they cannot earn anything out of these discussions I engage in 

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Community Guru
Preston H Member Since: Nov 24, 2014
118 of 118

re: "they cannot earn anything out of these discussions I engage in"

 

They have earned your trust.

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