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adba6102
Member

Suggestion to Create a Temporary Account to Park Refunded Money

I am a new international client in Upwork. i have recently encountered 2 experiences whereby my projects were cancelled mutually and the money refunded from the Escrow went straight into my funding source ~ credit card. The money was converted straight away into my local currency. And I have incurred losses due to banking system whereby banks earned their income through currency transction. When I hired again I have to use my local currency to start the process all over and hence another losses have been realized.  I have incurred time losses due to unproductive contracts, I hope I should not suffer another currency losses due to the banking transaction. Would not it be better if we have a temporary account in the Upwork system where we can use the refunded money to hire another freelancer? The temporary account will be used to park our refunded money and it will go back to our funding source only when the client choose to decide to do so. Do we have clients agree here? Or do we have a choice for this option that I am not aware of? Please help. Thanks.

2 REPLIES 2
petra_r
Member

Funds in Escrow can only flow two ways: To the freelancer, or back where they came from.

 

1) There are two ways you avoid this: Use PayPal and create a US Dollar balance, so there are no currency conversions either way. I keep three balances in my PayPal, US , British Pounds, and Euros. You can use your usual credit cards as a funding source for your PayPal account and keep your Dollar balance there. With the Dollar rising the way it has been (despite the recent dip) that makes real sense anyway if your cashflow allows it.

 

2) Discuss a US Dollar credit card with your bank which will again avoid losses through currency conversion charges and

Asriel,

I think you posted a great post and made an interesting new thread.

 

But you are going to nees to think of strategies that work for you within the confines of the current system. Petra (who lives in Europe but routinely uses American dollars and American accounts to her advantage) offered some great advice.

 

The simple fact is that Upwork will not be implementing your suggestion. Upwork really doesn't want clients getting issued refunds at all. Upwork wants money flowing to contractors, because that is when they make money. They're not making money off of reversing escrow balances and sending money back to clients.

 

Upwork has no particular interest in making things easier for people to do things that they don't want them to do, especially when you can already accomplish what you need to do (refund escrow). You just can't do it without incurring fees, which are fees Upwork passes on to you, so it doesn't cost them anything.