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Re: New Payment Processing Fee Complaint

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Valeria K Moderator Member Since: Mar 6, 2014
11 of 25

Hi Joshua,

 

I understand your frustration. Note, however, that an active contract is created when a freelancer accepts an offer the client made, not when the job is posted on the Marketplace. You are free to edit, repost your job posting and negotiate terms with freelancers who are interested in completing the job.

The client payment processing fee is charged on all transactions now regardless on when the original job post was published.

 

Additionally, to leave Upwork and pay freelancers outside the platform, you must first pay an “Opt-Out Fee.”  When you sign up to use Upwork, you agree to make all payments on the platform for 24 months after you form a client-freelancer relationship. This applies to both freelancers and clients. To learn more about the Opt-Out Fee, please see Section 7 of the User Agreement.

~ Valeria
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Joshua R Member Since: Jul 23, 2016
12 of 25

Lets face it. You buy a McDonald burger meal. You go and sit down. Then you ate the meal. Then you get up to leave, but the manger comes to you and says, "Ma'am, you need to pay us additional $50 for that meal. If you leave our establishment, you are required to vomit your meal and pay the "opt-out" fee of $1,000."

 

There are many different ways to give examples. What Upwork did was created a crooked and wrongful fee based payment in the middle of a project forcing clients to choose to pay up or to forever leave the freelancer.

 

What you are agreeing is that you will pay up  any amount that Upwork asks of you to continue your client-freelancer relationship. Good for you. But, that is a scam in the workings with a no win situation for the client if they don't pay that extra fee demanded by Upwork.

 

That can easily be fought in court and I am sure Upwork don't want a court case.

 

Loss of profits, clients, and freelancers. Yikes. And if they choose to sue the client, loss of reputation (media headlines) and loss of hundreds of thousands of dollars in damages. And guess what, it will be a domino effect as other people will see this and try to sue in attempt to get some money from Upwork. It happens. I've seen things like this happen before.

 

Wise if Upwork do what is good business practice now.

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Joshua R Member Since: Jul 23, 2016
13 of 25

Scott E,

 

It don't matter what their bid was.

 

What matters is the team's qualifications within such proposed offer of $7,000.

 

The team I selected qualified, even though they requested full amount.

 

I am not going to ask the team later to reduce their price by about $200 because of Upwork's new fees, which is wrong.

 

It is like me asking you, Scott (pretend you are a freelancer), to sacarfice $200 worth of hours or profit. Not going to happen.

 

Secondly, $200 or whatever it is may not be much to you. But, $200 is quite a difference!

 

 

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Community Guru
Kim F Member Since: Aug 26, 2015
14 of 25

"Then we can decide to hire the freelancer again, from outside Upwork, since we will not be using Upwrok platform. By no means can Upwork prevent anyone, even with contract, from hiring such freelancer during our lifetime."

 

Perhaps not. But they can prevent the freelancer from working on Upwork again due to them breaching the terms of service. Which is much more likely now you've suggested you might do this. 

Active Member
Joshua R Member Since: Jul 23, 2016
15 of 25

This can be fought in court, because the freelancer is in the same situation. They are prevented from working unless "they" pay the $200 extra if the client does not

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Scott E Member Since: Jul 26, 2015
16 of 25

And Netflix customers are prevented from watching movies unless they pay the extra after an increase, McDonalds customers are prevented from eating burgers unless they pay the extra when the prices go up, and Travellers are prevented from flying if a fare goes up one month after making an initial enquiry, as they don't want to pay the extra. That's just the way it works.

 

You were informed a month before it happens which seems pretty fair. The fact you're complaining about this now gives the impression that you might not have read the email. Doubly so as it would have explained that active contracts at the time of the increase wouldn't be charged the fee, so you could have awarded prior to the increase.

 

Prices go up, that's the way the world works. Sometimes you get quotes and prices go up between you getting the quote and agreeing to the sale. I don't think there's a court in the world that would award in your favor for this one. But there are probably plenty of courts that will side with Upwork if you try to circumvent giving them what they're owed by working off the platform. 

 

I appreciate that you don't want to pay the $200, and you don't want your freelancer to pay the $200... but it's slightly unfair to assume that Upwork should have to bear that cost, just because you don't want to. It's not idea, but you basically have to pay up, or source a different freelancer somewhere else.  

 

 

"Welcome, humans. I'm ready for you!"
- Box, Logan's Run (1976)
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Community Guru
Jennifer D Member Since: Feb 15, 2016
17 of 25

While I agree with you Scott E, I do feel obliged to point out that clients have to pay the 2.75% fee on every payment after the rollout date, regardless of when the contract started. The only exemption to the fee hike is for freelancers who had active contracts with clients worth less than $500. 

 

Your general point still stands though. Prices change. You either accept that the thing you are paying for is worth the price or you don't.

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Scott E Member Since: Jul 26, 2015
18 of 25

True, but I'd like to hope the client would fnd escrow at the beginning, thus eliminating the fee if paid prior to the increase... rather than funding as he goes along. That's an 'in an ideal world' scenario though. 

"Welcome, humans. I'm ready for you!"
- Box, Logan's Run (1976)
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Joshua R Member Since: Jul 23, 2016
19 of 25

Scott E,

 

You clearly don't understand the situation. Did you read anything I said?

 

This is not a complaint about new projects after May 3, but a complaint about projects still active since before May 3. I am okay with the payment fee if I list any projects after May 3 (day the message was given out about fee increase).

 

 

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Community Guru
Kholleras I Member Since: Nov 24, 2015
20 of 25

@Joshua R wrote:

Scott E,

 

You clearly don't understand the situation. Did you read anything I said?

 

This is not a complaint about new projects after May 3, but a complaint about projects still active since before May 3. I am okay with the payment fee if I list any projects after May 3 (day the message was given out about fee increase).

 

 


Didn't you say that you had only listed this project by the time the new fee went into effect? It was not an active project when the new payment fee went into effect; it was nothing more than a job listing. Valeria has already explained this to you.

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