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Clarification on a refund request policy

Community Guru
Alexander N Member Since: Dec 28, 2008
1 of 11

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Dispute assistance is available if the last payment on a Fixed Price contract was within the previous 30 days or as long as funds are held in escrow.

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does that mean that the client is able to demand refund on Fixed Price contract's milestones which have been paid less than 30 days ago, or held in escrow, or that he can demand refund on any Fixed Price contract milestones, including those paid more than 30 days ago, provided that *some* of them have been paid less than 30 days ago, or are still in escrow?

 

Basically, if i have a fixed price contract with 3x$1000 milestones, milestone 1 have been paid  40 days ago, milestone 2, 20 days ago, and milestone 3 is still in escrow, and client tries to terminate contract and extract whatever money he can get back, how much can he get back? $1000, $2000, or full $3000?

 

Got into that problematic situation, first time in 2.5 years...

 

Thanks!

Community Guru
Petra R Member Since: Aug 3, 2011
2 of 11

Alexander N wrote:

 

Basically, if i have a fixed price contract with 3x$1000 milestones, milestone 1 have been paid  40 days ago, milestone 2, 20 days ago, and milestone 3 is still in escrow, and client tries to terminate contract and extract whatever money he can get back, how much can he get back? $1000, $2000, or full $3000?


All of it. As long as money is still in Escrow or the last one was paid in the 30 days prior to dispute, the client can dispute everything paid under the contract.

 

Of course the good new is that for $ 3000 it's more than worthwhile going to arbitration ($ 291)

 

Community Guru
Alexander N Member Since: Dec 28, 2008
3 of 11

OK but if the last one  was paid over 30 days ago, and i refund the amount still in escrow myself, then the client can't request anything, even if the contract  is still open, correct?

Community Guru
Alexander N Member Since: Dec 28, 2008
4 of 11

What i mean here is that what if i refund amount in escrow and wait till there will be 30 days from the last milestone acceptance, am i clear of any future risks with  that client, and can just close the contract and delete feedback using top rated mechanism?

Community Guru
Petra R Member Since: Aug 3, 2011
5 of 11

Alexander N wrote:

What i mean here is that what if i refund amount in escrow and wait till there will be 30 days from the last milestone acceptance, am i clear of any future risks with  that client, and can just close the contract and delete feedback using top rated mechanism?


No, it is 30 days since the last milestone was funded - (the one you just refunded,) OR the client can just set a new milestone for $ 5 which starts the 30 days again

 

"Dispute Assistance Deadline” means the date 30 days after the Client was billed for the last milestone"

 


Alexander N wrote:

am i clear of any future risks with  that client


There is also the danger of a chargeback.

Community Guru
Alexander N Member Since: Dec 28, 2008
6 of 11

>No, it is 30 days since the last milestone was funded - (the one you just refunded,) OR the client can just set a new milestone for $ 5 which starts the 30 days again

 

that's fine, it's essentially the same date. and i don't think the client is THAT smartass.

 

>There is also the danger of a chargeback.

 

And if so, what  happens?

Community Guru
Petra R Member Since: Aug 3, 2011
BEST ANSWER
7 of 11

Alexander N wrote:

>No, it is 30 days since the last milestone was funded - (the one you just refunded,) OR the client can just set a new milestone for $ 5 which starts the 30 days again

 

that's fine, it's essentially the same date. and i don't think the client is THAT smartass.


Well, the client in my only ever dispute wasn't either until Support told her to do that so she could dispute after the deadline had expired.

 


Alexander N wrote:

>There is also the danger of a chargeback.

 

And if so, what  happens?


Upwork will suspend the client but you could still lose the money if Upwork can't defend the chargeback.

Community Guru
Alexander N Member Since: Dec 28, 2008
8 of 11

In the end, we reviewed client's expanded  requirements  and they proved to  be quite meaningful and he agreed to pay a small extra for it, so problem solved. No need for scandals Smiley Happy as usual, i am getting paranoid and overestimating problems.

Community Guru
Petra R Member Since: Aug 3, 2011
9 of 11

Alexander N wrote:

as usual, i am getting paranoid and overestimating problems.


Don't do that Smiley Wink It does you no good at all.

Worry about things that are happening, not things that might happen.

 

But I'm glad it is all resolved.

Community Guru
Alexander N Member Since: Dec 28, 2008
10 of 11

Getting back to this! Exhibit B: A long and expensive project for a client, last milestone funded and activated September 18, delivered October 17, paid October 18, contract closed October 22, with a 5-star feedback. Now the client comes back and asks  for free changes which "he thought would be included". Do i take any risks if  i just plain out decline?

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