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kwf002
Community Member

Refunded amount to client via a "suspended" contract without my authorization

I received notification for a contract saying it was suspended and then a few days later Upwork issued a refund to the clinet for nearly $400!!! What the heck is going on? I put in those hours and now Upwork just refunds the client - this is absurd. 

33 REPLIES 33
petra_r
Community Member


Kyle F wrote:

I received notification for a contract saying it was suspended and then a few days later Upwork issued a refund to the clinet for nearly $400!!! What the heck is going on? I put in those hours and now Upwork just refunds the client - this is absurd. 


That wasn't a real refund. The client never paid in the first place, and your hours didn't qualify for protection ("Protection" means Upwork paying you out of their own pocket..)

 

If you had tracked your time with the tracker, with meaningful work memos, adequate activity levels etc, Upwork would have paid you out of their own pocket.

kwf002
Community Member

I mean that's sort of complete BS. I have paid thousands of dollars in Upwork fees in the past few months and they screw me over a few hundred dollars like this. Excellent customer service you guys have here.

Hi Kyle,

 

We're sorry to hear about this. On hourly contracts when a client fails to pay for the hours logged by the freelancer and those hours don't meet the requirements for Hourly Protection, the payment may be reversed. Please check out this article for more information. Our team will also be reaching out to you via email with more information.

~ Bojan
Upwork
wlyonsatl
Community Member

Kyle,

 

I don't know how another freelancer can know what the problem with your work logs was, but I have found that Upwork's payment protection is very real if you follow the rules (provide meaningful memos for each work session, stay active on your keyboard mouse during each work session, etc.)

 

In case you are ever tempted to book "manual" time, keep in mind that even if a client "allows" you to add manual time to your weekly timelog for their project the client has no obligation of any kind under Upworkโ€™s rules to ever actually pay you for that work time. Manual time is not protected in any way under Upwork's payment protection rules and Upwork will make no effort to enforce payment due to you for manually-booked work time.

 

https://support.upwork.com/hc/en-us/articles/211062568-Upwork-Payment-Protection


Will L wrote:

the client has no obligation of any kind under Upworkโ€™s rules to ever actually pay you for that work time.


This doesn't actually get any more true the more it is repeated.

 

Clients absolutely are required to pay for manual time. If they fail to do so, they are suspended. This is the case here. It is not a case of a client paying and then disputing (a dispute the client would automatically win.) - This is straightforward non-payment, which would disqualify the client from disputing because only clients with an account in good standing are allowed to dispute. Clients who fail to pay no longer have an account in "good standing."

 

That said, Upwork does not pay the freelancer out of their own pocket in case the client fails to pay.

 

Freelancers are reminded that there is no protection for manual time every time they enter it. It should not come as a huge surprise.

 

Any dispute over manual time will be decided in the client's favour, but there was no dispute in this case, the client simply never paid for those hours in the first place (payment method repeatedly declined.)

Petra,

 

**Edited for Community Guidelines**

 

Upwork suspending a client doesn't get the freelancer paid, so your objection has no relevance to my regular reminders to freelancers that manual time is not covered by Upwork's excellent payment protection.

 

Upwork cannot assure a freelancer will receive payment from a client for manual time booked. It's really a pretty simple concept.

rohitjs2018
Community Member

Hi Petra,

Just now I am also facing the same issue. few days back, my contract was suspended and now logged amount was refunded to client, please elaborate more whats happening behind the scenes... I also have more logged hours in review state, and pretty sure those are also going to refund to client... its total waste of time and all the hardwork which I did for the client...

 

Thanks!

Hi Rohit, unfortunately, when the client fails to pay for hours logged by the freelancer, any hours that aren't covered by Upwork Hourly Protection may be reversed. Please check out this help article for more information.

 

~Andrea
Upwork

Hi Andrea,

Thanks for your reply! 

Does that mean client payment method is failed or client declined the payment?

Hi Rohit, 

Our team can't share specifics on why this happened to your contract, but I definitely recommend that you check the article Andrea linked on her post for more information.


~ Avery
Upwork


Rohit S wrote:

Does that mean client payment method is failed or client declined the payment?


That boils down to the same thing. Upwork repeatedly and unsuccessfully tried to charge the client's payment method.


Rohit S wrote:

Just now I am also facing the same issue. few days back, my contract was suspended and now logged amount was refunded to client, please elaborate more whats happening behind the scenes...


That means the client failed to pay and your hours didn't qualify for protection. Strictly speaking, there was no refund, the client simply never paid in the first place.

If you had tracked your hours correctly, it wouldn't matter what the client did because Upwork would have paid you out of their own pocket.

 


Rohit S wrote:

I also have more logged hours in review state, and pretty sure those are also going to refund to client...


Yes, chances are that the client never paid for those either.

Thanks for your reply Petra!

uacutie
Community Member

I encountered this same issue,a completed contract the client release funds for ,all of a sudden it was refunded back to him

for real 

a completed contract

i even lost a lot of money on that contract hoping to get paid ..why didn't stop d contract ,why refund the client my money after a completed contract 

Because that job was a scam so you lost the money from Upwork and any crypto money you sent to the scammer.

You are not the only one: https://community.upwork.com/t5/Freelancers/I-think-I-have-been-scammed-by-Upwork-and-its-not-fair-M...

But I did this deal on upwork cause I thought my money was save,really y'all don't charge the client and put it in escrow immediately the contract was made

how do you charge after 

that's a very big loophole

means this isn't a save place still 

You can't expect upwork to pay you in cases of fraud. If upwork doesn't get the money from the client, you will not get paid. 

The money was never really there. Upwork tried to charge their card and it didn't go through. Verified payment method does NOT mean the client can actually pay, just that a very small test charge went through.  You are not protected on hourly contracts unless you use the time tracker. On fixed-price contracts, the money is actually charged to the card and put in escrow. Still, even with those, if a client wants a refund, Upwork will give it to them and then it is up to the freelance to dispute that and try to get it back.

That's a complete bs..how do u collect back money thats be refunded?

client got the work done and still got d money back 

Yep. That's the way it works. They call it a refund but if it is hourly, it really isn't because the money is never really there until they charge on the card is submitted and the amount clears.

Hi Alago,

 

I can see that you already have an open ticket regarding this issue. One of our agents will update your ticket and assist you further. 

~ Joanne
Upwork

How long was d ticket opened ..I never got any response since then 

Hi Alago,

 

I checked and it looks like the team has already replied to you via ticket #34410788. Please refer to it here.

 

~Andrea
Upwork

Hello,

Can you check my account?

why was the money refunded I used a time tracker and write the work diary.

Hi Adham,

 

Thank you for reaching out to us. One of our team members will reach out to you directly via a support ticket to assist you further. You can access your tickets on this page.

 

~ Nikola
Upwork
data_divas
Community Member

If you read the terms of service for the site you'll see that you are not allowed to send money to clients.  You aren't safe if you disregard the rules in place to protect you. 

Mehn! Clients needs to be charged immediately they open the contract ,so upwork will know if they really have money to pay,so when the job is done d funds can be released

 Not charging there card after ..what if theee no money in it,u just suspend them and then what?

You paid money on behalf of the client by buying crypto, which is not allowed according to the Upwork's Terms of Service. Client's bad credit card only made it obvious that you broke that rule, and because it is a scam.

uacutie
Community Member

I get that no doubt but actually I never knew 

Upwork should warn people about scams and what they are and are not allowed to do BEFORE they sign up and not expect them to find that info burried in the ToS somewhere.

They really need too..because much more people will get scammed for something that can be avoided....total bs!

Same thing just happened to me Alago. And I can't stress enough that I blame Upwork for this

marie23
Community Member

seems upwork is more friendly to scammers, I feel disappointed too. 

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