Client requested a refund 12 days after the contract closed.

[tioloalvarez]

I worked for a client on this project fixed-priced at $20. I finished the job and he was happy. He gave me the first milestone $10 when I submitted the first draft,

After I submitted the final design, he gave me $20 ($10 remaining payment for the contract plus $10 bonus because he was happy with the design according to him). This last payment happened last May 6, which was 12 days ago. The contract also closed right after that.

Now, he's suddenly requesting a $10 refund through Upwork, saying that the payment was paid in bonuses instead of through the contract.

This is after we got into a small argument while discussing things in a different communication platform, not in upwork.

But I did my job for the contract, and it was him who decided to give me the bonus because he was happy. And I don't want to give him the refund.

The payment has already been released to me and no longer in escrow.

What should I do? 

If I just ignore the request, is it still possible for him to get the refund even if I don't accept the request?

What happens if I ignore the refund request?

[lysis10]

Because the amount is the same, it does kinda sound like the bonus was a mistake. Did he address the bonus as a bonus?

[tioloalvarez]

---

Jennifer M wrote:

Because the amount is the same, it does kinda sound like the bonus was a mistake. Did he address the bonus as a bonus?

---

The bonus wasn't a mistake because from the start he already told me that if he likes my design, he'll give me a $10 bonus. But when he gave the bonus to me, he paid it together with the $10 remaining balance in one payment.

So there were only 2 payments done: 
$10 milestone payment 

$20 bonus payment (second half of the agreed price + $10 bonus)

Now, he wants to refund $10 only, so he's requesting for the refund of the milestone payment which is $10.

[lysis10]

---

Tiolo A wrote:

---

Jennifer M wrote:

Because the amount is the same, it does kinda sound like the bonus was a mistake. Did he address the bonus as a bonus?

---

The bonus wasn't a mistake because from the start he already told me that if he likes my design, he'll give me a $10 bonus. But when he gave the bonus to me, he paid it together with the $10 remaining balance in one payment.

So there were only 2 payments done: 
$10 milestone payment 

$20 bonus payment (second half of the agreed price + $10 bonus)

Now, he wants to refund $10 only, so he's requesting for the refund of the milestone payment which is $10.

---

oh. Well, I guess you gotta decide what you're gonna do. 

[tioloalvarez]

---

Jennifer M wrote:

---

Tiolo A wrote:

---

Jennifer M wrote:

Because the amount is the same, it does kinda sound like the bonus was a mistake. Did he address the bonus as a bonus?

---

The bonus wasn't a mistake because from the start he already told me that if he likes my design, he'll give me a $10 bonus. But when he gave the bonus to me, he paid it together with the $10 remaining balance in one payment.

So there were only 2 payments done: 
$10 milestone payment 

$20 bonus payment (second half of the agreed price + $10 bonus)

Now, he wants to refund $10 only, so he's requesting for the refund of the milestone payment which is $10.

---

oh. Well, I guess you gotta decide what you're gonna do. 

---

If I just ignore the request, is it still possible for him to get the refund even if I don't accept the request?

What happens if I ignore the refund request?

The payment has already been released to me and is no longer in Escrow. 

[AleksandarD]

Hi Tiolo,

I checked and it seems that that the refund is being requested for the first funded milestone. Please note that when a contract is closed and escrow is funded, the client has the option of releasing the payment to the freelancer, or requesting for a refund. Since it looks like you have already been paid through a bonus payment, you have the option of refunding the funds in escrow to the client
However, if you think you deserve the payment for the first milestone, you can reject the refund request so that it goes to a dispute.
Please note that bonus payments are not covered by the Fixed-Price payment protection.

As I see that you are new to Upwork, feel free to check out these resources we put together to help freelancers to get to a safe and successful start.

• Freelancer's Manual
• Writing proposals
• Improve profile
• Tips on how to be successful
• Safety tips

Thank you.

[tioloalvarez]

---

Aleksandar D wrote:

Hi Tiolo,

I checked and it seems that that the refund is being requested for the first funded milestone. Please note that when a contract is closed and escrow is funded, the client has the option of releasing the payment to the freelancer, or requesting for a refund. Since it looks like you have already been paid through a bonus payment, you have the option of refunding the funds in escrow to the client
However, if you think you deserve the payment for the first milestone, you can reject the refund request so that it goes to a dispute.
Please note that bonus payments are not covered by the Fixed-Price payment protection.

As I see that you are new to Upwork, feel free to check out these resources we put together to help freelancers to get to a safe and successful start.

Thank you.

---

Thank you for this! 

Since the payment that he is refunding is officially registered in Upwork's system as for the Milestone (even though his intention is to get back the amount for the bonus), can it be covered by the Fixed-Payment protection? 

And what happens if I decide not to go into dispute, and just ignore the request? I can't seem to find resources on the website that answer this question.

I'm sorry if I have a lot of questions. I'm new to Upwork and I'm still a bit confused about the systems explained in the support pages of Upwork and how it applies to my specific situation. So thank you so much for your help! 😄 

[AveryO]

Hi Tiolo, 

If you feel like you deserve to be paid for the first milestone, other than the bonus payment that was released to you, you have the option of rejecting the refund so that this will go to dispute. Since this is an escrowed fund, this is protected under the Fixed-price Protection as noted in the section "Qualifying for Fixed-price Protection" in this help article. 

It's always best to end your relationship with your client amicably and I would recommend responding to the request. It seems that the request was made in good faith, and with the understanding that you have already been paid for the work you submitted. To maintain your relationship with the client, it would be best to process the refund instead of ignoring it. If you think otherwise, you can discuss this further with the client. 

[richard_wein]

Hi Tiolo. It sounds like what might have happened is this... 

1. Client activated first milestone and paid $10 into escrow.

2. First milestone was completed and client released the $10 from escrow. 

3. Client activated second milestone and paid $10 into escrow. 

4. Client paid you $20 as a bonus INSTEAD of releasing the $10 from escrow. (Bonuses are paid directly from the client's  payment method,  not from escrow. )

IF that's what happened, then there is still $10 in escrow,  and it's that $10 which the client is asking to have back, and not any part of the $30 that's already been paid to you.

I suggest you check your Reports Overview to see if there is $10 still in escrow. 

ETA. I probably misunderstood the situation, given that the refund request came 12 days after the job was closed.  If there was money in escrow when the client closed the job,  you should have received a refund request automatically. 

Also, the place to look for any money in escrow is under the specific job,  not under Reports Overview. 

[tioloalvarez]

Hi Richard!

The money has already been released to me, and Escrow is now $0.

To be honest, I don't want to approve the refund and I don't want to go to dispute. The client is very rude and keeps on accusing me of untruthful things. 

I just want to know if it's okay for me to just ignore the request and not do anything about it? What are the consequences if I do that.

And is it still possible for him to still get my money even though it's no longer in Escrow? Am I in a safe position here right now?

[g_vasilevski]

Hi Tiolo,

Please keep in mind that you have 7 days to respond to the request. If no actions are taken from your end, the funds will be refunded to your client. 

If you approve the refund request the funds will be refunded.  Feel free to proceed as you would like. 
For more details please refer to the information Avery and Aleksandar shared in their posts about our dispute process. Thank you.

[tioloalvarez]

Hi Goran!

Thank you for replying to my post. And I apologize for my many questions in this thread.

Just to clarify, can he still refund the payment even without my approval if the payment has already been released from Escrow? Escrow is now $0.

To be honest, I don't want to approve the refund and I don't want to go to dispute. The client is very rude and keeps on accusing me of untruthful things when I talk to him. The root of this refund is from a misunderstanding between us where he got mad, but he doesn't want to listen to me.

I just want to know if I'm in a safe position right now (in terms of money) given that the payment has already been released to me, and can I just ignore the request? Or will Upwork still give him the refund from my released money even if I don't approve it or don't go into dispute?

[petra_r]

---

Goran V wrote:

When a refund request is submitted you as a freelancer have 7 days to take actions. If no actions are taken and you just ignore the request, the funds will be returned to your client.

---

That would be the case if it was a request to return escrow funds.

It would not be the case if it was a refund request.

[VladimirG · Accepted solution]

Hi Tiolo,

We apologize for the confusion. While we always advise users to communicate directly about issues that arise on their contract, as Avery advised earlier in this conversation, if you can't resolve the issue with the client and choose to ignore the refund request I can confirm Upwork will not take any action.

Please note that your client might opt to file a dispute, in which case you'll receive a notification and our team will reach out to you.

[tioloalvarez]

Hi Vladimir!

This clarifies the confusion.

Thank you for explaining! I just needed the assurance that my released earnings will not be touched by Upwork and will not be given to the client even if I don't do anything with the refund request.

I just hope that the client won't file a dispute. He's rude and doesn't communicate very well. 

Again, thank you sir, and to all the users and moderators who helped me with this problem. 😄 

[feed_my_eyes]

---

Tiolo A wrote:

---

Jennifer M wrote:

Because the amount is the same, it does kinda sound like the bonus was a mistake. Did he address the bonus as a bonus?

---

The bonus wasn't a mistake because from the start he already told me that if he likes my design, he'll give me a $10 bonus. But when he gave the bonus to me, he paid it together with the $10 remaining balance in one payment.

So there were only 2 payments done: 
$10 milestone payment 

$20 bonus payment (second half of the agreed price + $10 bonus)

Now, he wants to refund $10 only, so he's requesting for the refund of the milestone payment which is $10.

---

I believe that the client has 30 days to request a refund, and you can't just ignore the request. But I'm no expert on disputes, so hopefully somebody else will come along to correct me if I'm wrong.

If I were you, though, I'd just give him back his $10. It's incredibly petty of him to ask for it, but since you were initially happy to work for $20 and you got paid $20, is it really worth your time and energy to go to mediation over this? 

You've got some nice work in your portfolio, so you should try raising your rates and then you won't get stuck working for such horrible clients.

[prestonhunter]

If a client gives me a $10 bonus.

And then asks for a $10 refund...

Then I send the refund.

No questions. No wondering about it. Just send it without comment.