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Community Member

Facing a huge problem due to chargeback

Recently we have encountered a huge problem due to chargeback.


One of upwork client has worked with us and done one project with us.


A contract was closed and the client provided a 5-star rating to us. After that upwork has paid to us for that job but a few days after we got an email from upwork that the client has filled chargeback and the amount paid to you by upwork should be returned to us.


What's wrong we did here? Upwork keeps money in the review period and then they release payments to us then how it could possible that the client can fill chargeback after review period and all payments completed? We don't understand. Why we are paying 20% fees to upwork. Why they do not have any restrictions on clients? 


Its been more than 45 days and we still have an issue with chargeback and not resolved. Upwork simply trying to earn money anyhow because if he charges 20% of the fee on each contract then imagine how much money they wanted to earn from each freelancer without providing them proper security.


Totally disappointed with the upwork policy & terms.


Any help from the community much appreciated.

Community Member

When you're facing chargebacks, Upwork will not protect you. Even if you're doing hourly with the time tracker the most Upwork would protect is $2,500, so if the chargeback is over this amount, you won't be protected. The only thing is can do at this point is take the client to court to dispute the chargeback. 

Actually, you can't dispute the chargeback, because the payment wasn't made to you. Upwork can dispute the chargeback. 


You could, perhaps, sue the client for fraud. If the work was web design or content writing or something along those lines, you could issue a takedown notice and perhaps sue for copyright infringement. But, the electronic payment was made to Upwork and the chargeback dispute process is available only to the recipient. 

Community Member

Seems Upwork just Shadow Bans User Accounts. First, they cannot protect against fixed-priced contracts. On top of it, my acc is shadowbanned for 1 year. Cant upgrade credits, no new proposals. An old scammer client gives chargeback, Upwork bans their ACC and shadow bans my acc. 1 year over no resolution. Time to quit Upwork? 

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