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Chargeback after completion of project successfully

shubhranilm
Active Member
Shubhranil M Member Since: Dec 12, 2020
1 of 29

Hello upwork Community

 

I am deeply saddened by what happened to me today. A client on upwork with payment verified account contacted me a month back on Upwork regarding some project related to statistics on fixed term basis. It was a project where I was supposed to solve questions and return back with answers. It went along for nearly 2 months and I completed the project successfully. He was so satisfied with my performance that he created 13 milestones one after another. I completed them all. It took me much of my time to complete the tasks. After his work was completed he ended the contract and left without a feedback review. However he paid for all the milestones.

 

15 days later I got a message from Upwork team regarding Chargeback from the client. Upwork informed me that my account has a temporary ban on withdrawal of any money from my account. This was new to me but I readily responded to it and eventually Upwork has taken away my hard earned money against this chargeback.

 

I tried to contact my client on the platform but I failed to reach him as he was not in a mood to respond back. I have attached a screenshot of the milestones that I have worked on for the client.

 

I have two questions in this regard:

1) I am paying a hefty 20% of my income to upwork for securing my payment. I have completed all the tasks as per the clients satisfaction and the client had days to review my work before making the payment. It all ended well but all of a sudden he decides to cheat me of my hard earned money. This is a scam and Upwork realizes it. My question is why should a freelancer pay for this scam and what does escrow do to prevent the scam from happening specially when 20% of my income is taken away for payment protection?

I understand that the scammer's bank charges Upwork once the chargeback is initiated but isnt this upwork's fault that it doesnt guarantee payment protection for which it charges a 20% commission?

 

2) Since many of my clients work on fixed term contract then is it possible that one fine day few others would do the same (since I really dont know whats their in the mind of the clients)? I really appreciate Upwork for being genuine and fair but dont you feel that it has become very easy to scam freelancers on this platform? Also if fixed term contract is not protected then why am I paying Upwork the 20% on fixed term contracts?

 

**Edited for Community Guidelines**

egaruth
Moderator
Nikola S Moderator Member Since: Jul 2, 2020
2 of 29

Hi Shubhranil,

 

We will look into this further and will get back to you once we have more information.

 

Thank you,

~ Nikola

Untitled
petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
3 of 29

Shubhranil M wrote:

I am paying a hefty 20% of my income to upwork for securing my payment.

...when 20% of my income is taken away for payment protection?

... it doesnt guarantee payment protection for which it charges a 20% commission?

...why am I paying Upwork the 20% on fixed term contracts?


payment protection is only a small part of what you pay your fee for, and does not apply to charge-backs that can't be defended for fixed rate contracts.

 


Shubhranil M wrote:

 Since many of my clients work on fixed term contract then is it possible that one fine day few others would do the same


Obviously it theoretically could, but overall it is vry rare. Most freelancers never experience a chargeback. i#ve never experienced one in 10 years and  320+ contracts

alexandernovikov
Community Guru
Alexander N Member Since: Dec 28, 2008
4 of 29

I can second this: never experienced a chargeback (and dispute only once, plus threatened a dispute once more and refunded voluntarily). Chargeback on the part of the client is also a gross violation of Upwork ToS, and results in clients' account being deleted from the system - so if you tried to ping him over Upwork, this is in vain because the account is dead.

 

Bottom line: Upwork can't protect you here, you just got badly, badly unlucky.

wlyonsatl
Community Guru
Will L Member Since: Jul 9, 2015
5 of 29

Petra, you have no way of knowing that, "Most freelancers never experience a chargeback." Or do you?

 

 

researchediting
Community Guru
Douglas Michael M Member Since: May 22, 2015
6 of 29

Will L wrote:

Petra, you have no way of knowing that, "Most freelancers never experience a chargeback." Or do you?


Will, you have no way of knowing that Petra has no way of knowing that "Most freelancers never experience a chargeback." Or do you?

I loves me some epistemology.

a_lipsey
Community Guru
Amanda L Member Since: Jan 23, 2018
7 of 29

Douglas Michael M wrote:



I loves me some epistemology.

I love when someone uses the word "epistemology".  It makes me so happy. 

wlyonsatl
Community Guru
Will L Member Since: Jul 9, 2015
8 of 29

Douglas Michael M,

 

I share your keen interest in epistemology.

 

As does, apparently, another of this board’s fairly frequent posters Petra, who has insisted that other posters here not claim they actually know something when all they really have is a mere personal opinion or guess not based in verifiable facts.

 

Standing tall for this important concept, she once admonished a poster she disagreed with by saying,

“Facts please? Numbers, sources, real stuff….Please present your proof for your statements.”

 

I was only asking her to do the same for her claim that, “Most freelancers never experience a chargeback."

 

We wouldn’t want to have a double standard here when it comes to factual information, would we, Douglas Michael?

aocumen
Moderator
Avery O Moderator Member Since: Nov 23, 2015
9 of 29

Hi Shubhranil, 


I'm sorry for the delay as we had to look into this further. It's also always best to make sure that you meet the Payment Protection Guidelines in the separate help articles linked here to ensure that you are payment-protected while working on Upwork. Please also read up on Section 4. Prohibited Site Uses of the Terms of Use for more information on what actions are prohibited on Upwork. 

 

As for your ticket, please know that a member of the team has reached out to you through this ticket. Since this is being handled by another team, it would be best to communicate with them regarding your concern so that they can assist you further. 

The team will continue assisting you with your concern on your support ticket. 


~ Avery
Upwork
ashrafkhan81
Community Guru
Ashraf K Member Since: Oct 15, 2019
10 of 29

Hello Shubhranil, 

 

So are you telling us that you did everything Upwork requires you to do in order to offer payment protection and still faced a chargeback and had your earned money taken away? 

 

So you essentially :

- Waited for Escrow to be funded for the milestone before starting the work. 

- You delivered the work and allowed the client to review. 

- After the client completed his review you waited for another 5 days while the funds were in pending stage

 

And still, had the money taken away? I would like to ask here, whether it is the client who is doing all this to get the work for free or is it that the client used a fraudulently obtained credit card credentials? 

 

If all of this can happen what is the meaning and scope of payment projection on escrow funded milestones? 

 

 

 

 

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