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What really is ''Chargeback''? Is it a Licensed Scam?

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Ace Contributor
Md Ashifur R Member Since: Mar 12, 2015
1 of 17

I've been working on Upwork for more than 4 years and for the very first time I've received an email from Upwork Chargeback Department stating that a client has issued chargeback via his bank for a $100 payment which was approved by himself after I delivered the work on a fixed price contract at last month 22nd October! Already 15 days has gone that he himself has approved the payment and I yet have no idea how could this chargeback even still exist now??? Payment by Upwork is highly secured, after client's approval the money doesn't deposited to freelancer's account instantly instead Upwork hold the money for 5 days as a security period if there's anything come up in client's mind so he can dispute the payment. As this happened for the first time with me, Upwork said if I want & help them then no money will be deducted from my Upwork account & they are willing to cover the fund as a one-time courtesy on my behalf, the amount due to the bank. I really appreciate this kind gesture from Upwork but it doesn't make sense why they'll pay back?? It's my hard earned money and he was happy wanted me to work more but his payment method became unverified and the contract we had were ended without leaving any feedback and communication! I delivered the exact work we agreed so why would I or Upwork pay him back?? Is that make any sense?? That means any client can post job, hire, pay and after the project is completed then anyday if he wants he can issue a chargeback and get his money back??? Really??? Isn't it scam?? To me its clearly scam! Is there really nothing Upwork can do to stop this abuse?? Isn't there any term & condition for client that once he/she hire & pay someone consciously & willingly then he/she can't initiate dispute/reverse/chargeback the payment after a certain period of time which he/she himself/herself has consciously and willingly approved?? In these matters if the result always goes to client's favor then it would surely inspire him to do more damage in future!! 

 

So what I'm feeling now if Upwork really can't do anything rather than paying back to client if he initiate chargeback via his bank then I think it's a huge flaw & freelancers are very vulnerable and there's verily no security for ours hard earned money. I personally think such chargeback shouldn't exist after security period! Until today I didn't know such chargeback things exist on Upwork! I checked my client's Upwork profile and found out his payment method was unverified and all the contract he had with other freelancers were ended without leaving any feedback! One of them has left a feedback on a contract addressing that ''the client's account was suspended and Upwork ended the contract without approving 2nd milestone for which he had submitted work.''  So clearly he was just scamming freelancers, he just hired and got his work done then paid and then initiated chargeback!! He then got back his money and work too for free! I fear the same thing has happened with other freelancers worked with him!! My logic is Upwork knows very well, who is playing fair and who is unfair so why do Upwork allows such chargebacks?? 

 

Note: Until today I didn't have any major issues with any of my clients. Most of my clients are just awesome, very helpful, much friendly, really polite and have warm relationship with them. I respect them very much & always try to provide my best. Heart

Community Guru
Jennifer M Member Since: May 17, 2015
2 of 17
Oh neat they paid out of pocket. Well this puts a positive spin on escrow.
Ace Contributor
Md Ashifur R Member Since: Mar 12, 2015
3 of 17

I really appreciate it but it doesn't mean they'll do the same in future as they clearly said it as one-time courtesy! Literally with this magical tool ''Chargeback'' any client can ruin any freelancers career! I'm just being more and more paranoid thinking about it. The only solution I personally found in my mind is that I should avoid working with new clients because you never know if he is a chargebacker or real client!! I should only work with clients who has a reputatable Upwork history to reduce the rate of being scammed in future. If a client spent more than 10K and has decent feedback from freelancers than it is safe to bid on his posted jobs. 

Community Guru
Jennifer M Member Since: May 17, 2015
4 of 17
Lololol how does a chargeback ruin your career? They paid you out of their own pocket so you got paid like duh

Welcome to business get a clue.
Ace Contributor
Md Ashifur R Member Since: Mar 12, 2015
5 of 17

They clearly stated that it is a one-time courtesy, what does it mean to you Jennifer??? If another chargeback happens in future Upwork will not pay that!!! What would you do then??? You actually won't have any choice, either pay back or get suspended!

Ace Contributor
Md Ashifur R Member Since: Mar 12, 2015
6 of 17

I'm not concerned about $100 chargeback! I would payback if I were the culprit! This $100 chargeback is not making me paranoid. I'm being paranoid just thinking about the potential of the collateral damage this chargeback abuses can cause in broader picture! Just don't think about me, think about every freelancers are in risk, if you're a freelancer then including you Jennifer. Hope you can draw the picture I'm seeing now.

Ace Contributor
Md Ashifur R Member Since: Mar 12, 2015
8 of 17

Yeah thanks to everyone as this happened to me for the first time! I really hope this don't happen with anyone not certainly with me again Smiley Tongue 

 

Everybody wish me luck!! Smiley Tongue 

 

Just wanted to know if there's anything we freelancers could do to defend ourselves from this disasters. Only for this reason I posted here. Smiley Happy 

 

Peace be upon you all! Heart

Ace Contributor
Md Ashifur R Member Since: Mar 12, 2015
8 of 17

I said even Upwork shouldn't payback as definitely, it was not my fault neither Upwork's so why would they payback behalf of me?? If they complete the payback request then logically it seems that Upwork arguably admits its either Freelancer's fault or Upwork's!! The owner of that account, posted jobs, hired freelancers, gave them work he needs done and got the work completed then he consciously, willingly paid them for their labour for which they were hired for. Everything was fine and fair. After 15 days he discovers that he wants his money back, is it really that easy?? He's solely responsible for everything, he had enough time to dispute why he didn't do that?? Because he knew very well that he actually has no evidence to back his claim if he initiated the dispute in Upwork.     

Community Manager
Valeria K Member Since: Mar 6, 2014
9 of 17

Hi Md Ashifur,

 

According to articles 6.4, 6.5 and 6.6 of the User Agreement, a client's account can be suspended if they file a chargeback. While Upwork team can't stop the client from filing a chargeback with their bank, they will take actions against the client's account according to ToS and will work to retrieve the payment.

~ Valeria
Untitled
Ace Contributor
Md Ashifur R Member Since: Mar 12, 2015
10 of 17

So chargeback means you must pay back?? I've files, evidence and all the chat log in Upwork Room with my client. Isn't there anyway to dispute the chargeback? I actually don't have much insight about chargeback! Do you agree Valeria literally with this magical tool ''Chargeback'' any client can ruin any freelancers career?? I'm just being more and more paranoid thinking about it. The only solution I personally found in my mind is that I should avoid working with new clients because you never know if he is a chargebacker or real client!! I should only work with clients who has a reputatable Upwork history to reduce the rate of being scammed in future. If a client spent more than 10K and has decent feedback from freelancers than it is safe to bid on his posted jobs. 

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