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Facing a huge problem due to chargeback

Active Member
Pragnesh C Member Since: Feb 8, 2019
1 of 7

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.

Moderator
Goran V Moderator Member Since: Mar 24, 2017
2 of 7

Hi Pragnesh,

 

I understand your frustration with this and I`m sorry about the inconvenience this had caused you. 
I can see that you`re communicating with our team on your ticket. Please refer to the details shared with you on your ticket with number 27002591. If you have any additional questions feel free to post them there and our team will assist you further. Thank you.


Untitled
Community Guru
Petra R Member Since: Aug 3, 2011
3 of 7

Pragnesh C wrote:

 

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?


Unfortunately chargebacks are a real risk when doing business and Upwork, like any other platform, can not fully protect you. They are also very rare. (In 8 years and 250 contracts I've not encountered one yet.)

 

If a client paid with a stolen or hacked payment method for example, no matter what, the genuine owner of that payment method will be able to chargeback, and there is nothing Upwork can do about it at all.

 

On hourly contracts you'd be protected *IF* the work was logged according to the terms of the payment protection (in which case Upwork eats the loss.)

 

It's a pain but a reality of doing business online.

 


Ace Contributor
Lisa J Member Since: May 5, 2016
4 of 7

Just wanted to add that I just got a chargeback as well. First time ever. Almost 8 years, 68 contracts so that would basically be 1.5% of the time. I find this number to be pretty high when you think about it... Upwork is fighting it for me but nothing is guaranteed. I think I may rethink  my fixed-contract approach and switch to hourly more often.

 

Always a good reminder to change your approach a little bit Smiley Happy

Active Member
Pragnesh C Member Since: Feb 8, 2019
5 of 7

The number you gave me is pretty high and it definitely a serious matter for upwork to look into. Upwork really needs to introduce a better client policy and don't allow a fixed-price contract system for a client like many other great platforms do.

Active Member
Pragnesh C Member Since: Feb 8, 2019
6 of 7

Upwork is allowing the client to make fraud by providing them an option to have a fixed-price contract. If they won't allow fixed-price contract then this fraud percentage will be reduced.

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

Pragnesh C wrote:

Upwork is allowing the client to make fraud by providing them an option to have a fixed-price contract. If they won't allow fixed-price contract then this fraud percentage will be reduced.


Then don't use fixed price contracts in future. But just because it happened to you once does not mean it will ever happen again.

 

Chargebacks, painful though they are, are very rare in the overall scheme of things, I've (luckily) not had one in over 250 contracts yet.

 

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