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5-Day Hold Period

dbcclarke
Active Member
David C Member Since: Feb 6, 2020
11 of 17

wassim... you have a point here. i don't understand what the person above you is trying to get at. I hate the 5 day hold that is done by upwork. You (not you but Tiffany) cant compare working a normaml job and getting paid every two weeks with working on Upwork and getting paid. I don't why she brought that up. Upwork is designed to get you paid after each job you do. Working a full time 9-5pm is designed to be pay every two weeks.

researchediting
Community Guru
Douglas Michael M Member Since: May 22, 2015
12 of 17

@Wassim T wrote:
.But knowing that the client has paid and Upwork is holding this money in their bank account for an X amount of days is kind of annoying.... 

Wassim,

 

It’s not really “their” (Upwork’s) bank account. It’s an escrow account, which is an entirely different kettle of cash. Upwork can’t do anything with this money but pay it to us or return it to clients. It’s closer to a liability to them than an asset: They are under regulation and scrutiny as to how they handle the funds, including the strict obligation to pay them out in a timely manner, subject to verification that the two contracting parties (freelancers and clients) have fulfilled the contract terms. They have piloted shorter release times; apparently for now the data say 5 days (calendar days, not business days) is the sweet spot for meeting their fiduciary responsibilities while minimizing risk.

Best,

Michael

colettelewis
Community Guru
Nichola L Member Since: Mar 13, 2015
13 of 17

The maximum wait on a fixed-price job on Upwork is about 20 days (that is, when the client accepts the work, and then goes MIA and does not dispute).

l wait four to six weeks after completing the job to be paid by my best (off platform) and regular client. It's how her business operates. And I adjust my own finances accordingly.

creativedigit
Community Guru
Wassim T Member Since: May 29, 2015
14 of 17
Thanks for this invaluable addition, Michael. I don't really understand how this works behind the scenes, and I am not even complaining about the hold days either. I do receive money from Upwork constantly and confirm it's safe to do business with them and trust them over any other business online quite honestly.

Sometimes I just leave the money in my Upwork account for few days after it's been cleared. So it's not like I am desperate for the money, but it's rather a conceptual thing instead.

I got used to those 5 hold days anyway. It's like they don't even exist anymore, but it'll be nice if Upwork can Improve it so others can enjoy getting their money faster.
versailles
Community Guru
Rene K Member Since: Jul 10, 2014
15 of 17

@Douglas Michael M wrote:

They have piloted shorter release times; apparently for now the data say 5 days (calendar days, not business days) is the sweet spot for meeting their fiduciary responsibilities while minimizing risk.

Best,

Michael


If my memory serves me well, on Elance the security period started from the moment the funds were put into the escrow. Elance was incorporated in the same state as Upwork is, so I don't think this is a regulatory obligation.

-----------
"Where darkness shines like dazzling light"   —William Ashbless
creativedigit
Community Guru
Wassim T Member Since: May 29, 2015
16 of 17

That's exactly my point, Rene. I understand that Upwork is not Elance, but there was a security period over Elance (3 business days) but starting the moment when the milestone has been funded, not released.

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
17 of 17

@Rene K wrote:

@Douglas Michael M wrote:

They have piloted shorter release times; apparently for now the data say 5 days (calendar days, not business days) is the sweet spot for meeting their fiduciary responsibilities while minimizing risk.

If my memory serves me well, on Elance the security period started from the moment the funds were put into the escrow. Elance was incorporated in the same state as Upwork is, so I don't think this is a regulatory obligation.


 The pertinent part here is " while minimizing risk."

Once money is withdrawn, it is gone forever, whether ill gained money vanished and the loss is born by Upwork or the client...

 

Ultimately when that happens we all pay, be it through higher fees or lost clients.

 

 

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