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Ahmed's avatar
Ahmed H Community Member

Creating a contract with unverified payment method?

Hello everyone,

I would like to ask if a contract can be created if the client's payment method is unverified? and should I even bid to job postings with unverified payment methods?

 

Thanks

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Kathy's avatar
Kathy T Community Member


Ahmed H wrote:

If the part of the money is present in escrow, can't that lead to many scams? They can simply accept the delivery and only the money in escrow be released which wasn't the full amount of money agreed on. I don't have much experience how transactions are carried out here exactly.


Yes, you are 100% right. Many new freelancer believe the client when they say they will pay/fund the rest of the amount when the work is delivered and then they disappear once getting their work. That's why I always say, make sure escrow is FULLY funded either for the entire job or for the amount of each milestone as they come up BEFORE you start work on the job/milestone. 

 

No matter what was agreed on for payment, you will only get paid from what is in escrow. 

Always check the amount in escrow. 

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Will's avatar
Will L Community Member

Yes, to both of your questions.

 

But you should make it clear to any potential new client that you follow Upwork's recommendation that you only start work for them after Upwork confirms their payment method. (This is part of my standard new job application text, which may or may not work for you.)

Ahmed's avatar
Ahmed H Community Member

But how come? Doesn't the client pay the required amount when starting a contract? or when do the client pay then for the job? After delivery?

Jennifer's avatar
Jennifer R Community Member


Ahmed H wrote:

But how come? Doesn't the client pay the required amount when starting a contract? or when do the client pay then for the job? After delivery?


Why should a client fund the money before he has decided on a freelancer and a rate has been defind? The client is requested to verify his payment method and fund some money but nor necessarily the whole amount. You as a freelancer have to make sure you only deliver for the amount in escrow. Once you have delivered and requested the payment using the submit button the client has 14 days to review the work and either release the money in escrow or to dispute the work provided. If the client does nothing, the money in escrow will be released to the freelancer. That is not necessarily the same amount as agreed on beforehand.

Ahmed's avatar
Ahmed H Community Member

If the part of the money is present in escrow, can't that lead to many scams? They can simply accept the delivery and only the money in escrow be released which wasn't the full amount of money agreed on. I don't have much experience how transactions are carried out here exactly.

Kathy's avatar
Kathy T Community Member


Ahmed H wrote:

If the part of the money is present in escrow, can't that lead to many scams? They can simply accept the delivery and only the money in escrow be released which wasn't the full amount of money agreed on. I don't have much experience how transactions are carried out here exactly.


Yes, you are 100% right. Many new freelancer believe the client when they say they will pay/fund the rest of the amount when the work is delivered and then they disappear once getting their work. That's why I always say, make sure escrow is FULLY funded either for the entire job or for the amount of each milestone as they come up BEFORE you start work on the job/milestone. 

 

No matter what was agreed on for payment, you will only get paid from what is in escrow. 

Always check the amount in escrow. 

Phyllis's avatar
Phyllis G Community Member

A client who has not hired on UW before is unlikely to bother verifying their payment method until they find a FL they want to hire. At that point, they need to do it. Never accept a contract until the client has verified their payment method. If you do, and they are ultimately not able to provide a legitimate payment method, then you won't get paid and UW can't help you.

 

As for escrow questions... Never submit completed work unless the funds in escrow will cover full payment for what you are submitting. Depending on the size and nature of the project, a client may only fund part of the total budget initially. If you can comfortably chop the work into segments that align with how they are funding, and only submit what's been funded, go ahead. But never submit work ahead of what's funded.

 

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