Question / Suggestion

[dr_pilot]

I have a question that I couldn't find an answer for, and it could be a suggestion for Upwork to consider.

Upwork always says that it does not invest or earn interests on money present in escrow or freelancers' accounts. That money is possibly millions or billions of dollars present each day every day.

Upwork isn't profiting from them, and pushing freelancers to withdraw and not leave funds on it for long periods of time.

Why doesn't Upwork let freelancers leave their money as long as they want ? and why doesn't it profit from the large amounts of money that are present on it ? this can be another source of income for Upwork.

More money means that Upwork can reduce fees for freelancers and clients while maintaining the same income or give rewards or interests to freelancers.

[tlbp · Accepted solution]

US escrow laws don't permit funds in escrow to be held indefinitely and usually requires interest earned on escrowed funds to be distributed to the owners. I would assume Upwork doesn't want to undergo the expense of becoming a US financial services institution--a situation that comes with layers upon layers of compliance and audit obligations. 

[dr_pilot]

This makes sense, I didn't know about the US laws, my suggestion would become :
Consider becoming a financial services institution, this can be beneficial to freelancers, clients and Upwork. Because with billions of dollars in play no matter how complex it is, the profits and benefits will cover it all.

[NikolaS]

Hi Elyes,

Thanks for reaching out and sharing your suggestion. Unfortunately, because Upwork is not a bank or payment transfer agency, we cannot maintain balances for more than 180 days, per our Terms of Service.