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lauk
Member

I want to know How we count the service fee.

I would like to know how we count the Service Fee during the contract still running. Me and my client, we will have a trade more than 500$, but I found that it deducted my pay of the first week as 20%, it's already in pending. So I want to understand how it work, is it count for every single week or it will count again by the total pay when the contract end.

ACCEPTED SOLUTION
egaruth
Moderator
Moderator

Hi Kimmy,

 

All contracts that cross a fee threshold will be charged at a blended rate. For example, if you begin an hourly or fixed-price contract with a new client for $600, you’ll be billed 20% on the first $500 and 10% on the remaining $100. The same is true of a $15,000 contract – you’ll be billed 20% on the first $500, 10% on the next $9,500, and 5% on the last $5,000.

 

We will automatically apply the lower service fee if our system detects that your total billings with a client have exceeded a fee threshold. You can verify this by checking the service fee invoice breakdown in your Transaction History.

 

 

You can find more information in this help article

 

~ Nikola
Upwork

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2 REPLIES 2
petra_r
Member


Kimmy L wrote:

 Me and my client, we will have a trade more than 500$, but I found that it deducted my pay of the first week as 20%, 


Yes, because you haven't earned $500 with that client yet.

 

The first $500 paid to you by any one client - 20%

Any money paid in excess of the initial $500 - 10%

 

egaruth
Moderator
Moderator

Hi Kimmy,

 

All contracts that cross a fee threshold will be charged at a blended rate. For example, if you begin an hourly or fixed-price contract with a new client for $600, you’ll be billed 20% on the first $500 and 10% on the remaining $100. The same is true of a $15,000 contract – you’ll be billed 20% on the first $500, 10% on the next $9,500, and 5% on the last $5,000.

 

We will automatically apply the lower service fee if our system detects that your total billings with a client have exceeded a fee threshold. You can verify this by checking the service fee invoice breakdown in your Transaction History.

 

 

You can find more information in this help article

 

~ Nikola
Upwork