Maybe banks in your country issue credit cards, but I am from Ukraine, and it looks as I described it in the previous post. All our debit cards have credit limit, that means banks instead of issuing real credit Visa / Mastercards set a credit limit, that means I can go "into the minus" with my ukrainian debit card, this is up to $2000 credit in my case, but Upwork only makes a decision based on card number.
Gift cards cut you off once you reach the amount on the card. Credit cards will auto-extend your credit line unless you're a pleb.
I'm glad they don't take gift cards. I mean jeesus what are we in the hood or something? Get a real charge card if you want to buy things online like services. Nobody takes gift cards unless they are working out of the trunk of their car.
You misunderstand. I don't want to use gift cards. I completely agree gift cards are dumb in this case.
I also have zero interest in credit cards for personal reasons regarding debt.
Now debit cards- on the other hand- are a permanent form of exchange that is directly associated with the owner's identity.
I don't think it would be legal to use prepaid cards, unless Upwork collects KYC documents from the clients. The transaction between people in different countries has to be traceable. To make sure money isn't being anonymously transferred to terror organisations, or just fraud like money laundering. (Paying Upworks fees for laundering your money would be super cheap, as money laundering through other places often costs much more...)
With a card connected to a bank account (credit or debit), the money will be traceable, as no one can open a bank account without verifying it. That way you can be sure that client X paid freeancer Y this and that amount.
When it comes to different prepaid options you don't always have to verify your account before receiving a card connected to it, and then you can make anonomous payments, up to 2300EUR per 6 months period. (At least this is what the AML directive says for the EU. Guess the US and other parts of the world could have different rules.) That way client X can claim to be client Z, and then transfer funds to freelancer Y. (I could open an account with Skrill or Neteller claiming to be Donald Duck, and they would send me a prepaid MasterCard.)
Gift cards is all just fraud, more or less. A couple of years ago a terror attack was funded using Paysafe cards laundered through an online casino... Another problem with this method would be that a refund would not be possible to process, so then there will be even more KYC documents required.
The only way to get around this would as I said be if Upwork performs KYC checks, which I guess they do not want to do, as they would have to hire 200 people to be able to check all the document that would come flooding in. Or keep track of which prepaid sites/accounts require verification before opening an account or receiving a prepaid card. Also, these sites wouldn't be allowed to just tell Upwork if the account is verified or not, so paperwork from the client would be required.
As a freelancer I would love for clients to be able to pay me using a prepaid card though, as that would make sure my payment would never get chargedback. But I guess that will never happen. The reason a freelancer can get paid to a prepaid option is that the responsibility is then no longer with Upwork, but with the prepaid service provider.
Different countries can also have their own rules and laws in addition to all of this.
Sorry for the long post.
Do you not think that Upwork would take your money if they could? Obviously it's in their best interest to make it as easy as possible for clients to pay freelancers. But at the same time they have both legal restrictions on some solutions as well as business reasons to not accept some solutions. If the risk outweighs the benefit, it makes sense to not use that solution. Upwork are a business that wants to make money, it's pretty simple really.