REFUND

[lana_stefanovic]

Hello, I have ended my job, and the client has requested a refund but has NOT paid me anything. I ended the job before I started working. Am I obligated to pay, even though there is no money to refund...?? Please help, I'm new on Upwork!

[prestonhunter]

Lana:

If you have not been paid anything, then of course you don't owe the client any money.

If you had a fixed-price contract, and then you CLOSED the contract yourself, then all money in escrow will automatically go back to the client within 5 business days.

If you have ANY questions, feel free to ask right here in this thread.

[lana_stefanovic]

Thank you!

[AveryO · Accepted solution]

Hi Lana, 

This sounds like a fixed-price contract where the client funded money in escrow for the first milestone. When a contract is closed where money is in escrow, the client has the option of paying the money in full or partial amount to the freelancer or requesting a refund. The refund request is by design in case a freelancer would like to dispute the remaining funds in escrow. I'd also like to clarify that the money will not come out of your Upwork Balance.

Since you confirmed that no work was completed, you can approve the refund request so the money goes back to the client's billing method. 

[lana_stefanovic]

Thank you for your help! I appreciate it.

[kelvintac]

Hello, please allow me to reply here.

I need help to refund my client. The client gave me a survey job, however during the festive season he was busy and he told me he has approved the contract. So I used the money and after one week the client wasn't satisfied and requested we do a refund of $450 initially the contract was $500 where upworl took $100. Now I need to ask is it possible for upwork to credit my account the money so that I can refund my client $450 then my balance to remain -(Negative the. Deduct the money from future projects.

Kindly note this was agreed upon $450 so I want upwork to refund the fee of $100 and the $350 then deduct me on my future tasks.

The client agreed also I can pay in three months but I want to settle him and be left to settle upwork on all the future tasks

[petra_r]

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Kelvin m wrote:

Now I need to ask is it possible for upwork to credit my account the money so that I can refund my client $450 then my balance to remain -(Negative. Deduct the money from future projects.

---

That isn't possible.

If you have the money available outside of Upwork, you could see if Upwork lets you pay it into your account.

But Upwork won't "lend you" the money to refund the client.

When you have enough to do the refund in your Upwork accout, Upwork does return the fee part of what you refund.

[69aa02d5]

This is somewhat like my situation except I need a refund from the freelancer. I paid for a storyboard project that never materialized. Freelancer kept asking for a revised script. I only received two black and white frames. I never received my 12 panel color board. Apparently the project hit a milestone and the freelancer was paid without completing the project 

[prestonhunter]

Lounetta:
Refund thinking hurts clients.

It is much safer to STOP paying an underperforming freelancer than to continue paying her, and then later ask her to send money back to you.

Often, if a client asks a freelancer for money (in the form of a "refund"), the freelancer will say no.

re: "Freelancer kept asking for a revised script. I only received two black and white frames. I never received my 12 panel color board. Apparently the project hit a milestone and the freelancer was paid without completing the project "

Based on your description of events, I don't see any basis for asking a refund, insofar as Upwork is concerned.

It is not Upwork's intention that you receive a refund because a project was "not completed."

Using fixed-price contracts, clients pay freelancers for specific milestones.

If there are 10 milestones to complete the project, and the freelancer did only 1 milestone, then it is Upwork's intention that the freelancer should be paid for that milestone, and should retain that money, no matter how many other milestones were done or not done.

If you have questions, then feel free to ask.
But first, please tell us how many milestones did the freelancer compete?

How many milestones were there in total?
How much money in total was the freelancer paid for this project so far?