Pay

[Bob k]

why five-day security period

[Preston H]

re: "why five-day security period"

Because of bad people.

Scammers using stolen credit cards or other invalid sources to fund payments would immediately withdraw those funds as a way to get cash, but Upwork would be on the hook.

If you figure out how to get rid of the bad people who try to cheat the system, then Upwork can get rid of the security period.

[Preston H]

re: "why five-day security period"

Ultimately, whether you tolerate a 5-day security period is your choice, and nobody else's.

Many people choose to not use Upwork at all and focus their freelancing efforts only on clients in their local community, with whom they can do cash deals or avoid any security period, or maybe pay net-30, which is an industry standard and means that clients have 30 days after you invoice them within which to pay. Although to be honest, their payment is done using the "honor system", not through an escrow system like Upwork has...

[Will L]

No one should begrudge Upwork protecting itself from scammers who take advantage of delays in the global payment system for their frauds, but I have never seen an explanation why Upwork needs to continue to hold on to money that the client has put into escrow for a fixed price project days or even weeks prior and then authorizes Upwork to release.

[Petra R]

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@Will L wrote:

No one should begrudge Upwork protecting itself from scammers who take advantage of delays in the global payment system for their frauds, but I have never seen an explanation why Upwork needs to continue to hold on to money that the client has put into escrow for a fixed price project days or even weeks prior and then authorizes Upwork to release.

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 Because giving all the potentials for fraud in even those cases would just be publicly giving scammers new ideas they had not thought of yet.

With the 5 days security period at least there is a chance to catch most of those before they're withdrawn and gone forever.

[Will L]

If that's the party line, so be it. It's just the way things work in Upwork World.

But as a person with many years of experience working in international banking and international payments, I have my doubts this is the real reason.

PayPal and many other entities are able to make same day payments once they know the payor is legitimate. If my client funded escrow two weeks ago and now tells Upwork to release the funds in Upwork's bank account to me, Upwork has no additional security by holding on to the payment an additional five business days.

[Petra R]

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@Will L wrote:

PayPal and many other entities are able to make same day payments once they know the payor is legitimate.

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 Fraudulent PayPal / card payments can be reversed via a chargeback. Upwork withdrawals can not. Once the money has been withdrawn, it is gone. All Upwork can do then is suspend the freelancer, but the money is and stays gone.

Let's think in terms of hacked / stolen / compromised PayPal account / credit card a fraudster can open an Upwork account, hire his / her pal for lots of money, release straight away, withdraw, and it's gone. Next day the legitimate owner of the stolen payment method cancels their credit card and / or files a chargeback and Upwork has a nice big loss on their hand because such a chargeback can not be defended.

Just as an example.

[Joanne Marie P]

Hi Bob,

The security period applies to all payments and refunds on all contracts. It gives Upwork time to process and clear the payments, and resolve any disputes, before funds are released to freelancers. You can check this help article. 

[Prashant P]

Hey Joanne: 

I am just curious.  Would it be possible for you to check my account and see why my payment is still under pending?  It was released on Monday as a bonus.

[Joanne Marie P]

Hi Prashant,

Can you please send me a PM with more information so I can check this for you? Thank you!