Your payment can be reversed even after project is closed by 5 star feedback

[kmunjal]

Hi All BEWARE!! oDesk will reverse the payment even if the project is successfully completed with 5 star feedback. My client sent me BONUS payment. But after that when she doesn't need that specific work, that I already started working on it contacted oDesk and oDesk reversed the payment without my consent. And when I asked oDesk about this, they said fixed price are not guaranteed , in Fixed price contracts payments can be reversed in even closed project with 5 star feedback. Now I am afraid I have completed 400 jobs here and 3400 hours logged, close to 350 jobs are fixed now if every client will go to oDesk and ask to reverse payment they will reverse it by saying fixed prices payments are not guaranteed?. I am here a reputed contractor by which oDesk earned thousands of dollars, they are doing this to me, Now please think what they will do to the newbie. Thanks

[kmunjal]

I am not raging against anywhere here, specially upwork. I just want Upwork to fix this loophole so other clients don't take advantage of this and you should be a little polite in the conversation as well, that's it.  We all are discussing here, and I think we all should take constructive criticism lightly, it will help improve the product in the long run.

[petra_r]

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Kunal M wrote:

I am not raging against anywhere here, specially upwork. I just want Upwork to fix this loophole so other clients don't take advantage of this

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What "loophole"? Upwork can't in any way predict what will happen on a client's payment method at a future date. How could they? They tried to charge the client's payment method again and again, what more would you have them do?

Had it been a genuine, real hourly contract that had been correctly and genuinely tracked, Upwork would have paid you out of their own pocket. But as it wasn't, they didn't, as is clearly explained in the terms. 

If Upwork covered fake hourly contracts at fake rates, it would open the floodgates to fraud.

That's all there is to it.

[kmunjal]

Ok, thanks for your reply.

[ravi_iitian]

It doesn’t matter what seems fair or unfair; what matters is that Upwork has to protect itself too (from intentional or unintentional scams).

As such, Upwork has clearly stated the following under 6.1:

“The maximum rate per hour protected by Upwork to Freelancer under the Hourly Payment Protection for Freelancers is the lesser of: (i) the rate provided in the Hourly Contract terms; (ii) the usual hourly rate billed by Freelancer on the Site across all Clients; and (iii) the going rate for the same skills on the Site in Freelancer's area (such determination to be made in Upwork's sole discretion). The maximum amount of coverage under the Hourly Payment Protection for Freelancers for the life of a relationship between the same Client and Freelancer is $2,500 or 50 hours logged in Work Diary at Freelancer's average hourly rate billed to Client, based on whichever is less.”

https://www.upwork.com/legal#escrow-hourly

It is a different matter that Upworkers may not be (or have been) aware of this clause.

Well, now they should be aware after reading this thread.