Client has funded only half of agreed amount. Can I end contract and refund him?

[eraquintan]

He is very sketchy. I brought up that he funded only 50%, and he said it’s because Upwork charged him a bunch of fees. And offered to just send the rest of the money and then some via Xoom. I don’t want to deal with this sketchy client so I want to end the contract and not receive the payment. I haven’t done any work yet so I don’t need the money. How will this affect my JSS?

[prestonhunter · Accepted solution]

re: "Client has funded only half of agreed amount. Can I end contract and refund him?"

Yes.

That is exactly what I would do.

I don't have any need whatsoever to spent time with clients who play games like that.

I can not tell YOU what YOU should do.

But if I discussed a project with a client, and I said that a specific task would cost $125...

And then the client funded a milestone payment for $124...

I would close the contract myself, refunding the escrow payment back to the client, and I would spend my time working for other clients: ones who take me seriously and don't play games like that.

re: "He is very sketchy. I brought up that he funded only 50%, and he said it’s because Upwork charged him a bunch of fees."

Does Upwork charge you fees?

Not my problem.

I said $125.

You fund $125 or we are done.

And by the way, Upwork charges clients a set payment processing fee of 3%.

Not 50%.

https://support.upwork.com/hc/en-us/articles/218375638-Client-Payment-Processing-Fees

re: "And offered to just send the rest of the money and then some via Xoom."

So the client is openly asking me to participate in defrauding Upwork, and violate one of Upwork's most important ToS rules (never exchange funds off-platform)?

Of course I don't trust this person.

I would click on the "Flag as inappropriate" link button on the job post page and report this client.

[eraquintan]

Yes that's what I'm planning to do -- however, do you know will this affect my JSS or my standing on Upwork? The contract only started this morning so I'm wondering if I'll sustain any impact from ending the contract.

[prestonhunter]

re: "I don’t want to deal with this sketchy client so I want to end the contract and not receive the payment. I haven’t done any work yet so I don’t need the money. How will this affect my JSS?"

You can close the contract.

You SHOULD close the contract.

It shouldn't affect your JSS at all.

Hopefully the client won't leave any feedback of any kind. If YOU close the contract proactively, you make it possible for the client to NOT leave any feedback. Technically a client MIGHT still leave negative private feedback. But hopefully the client won't do that, and hopefully the fact that you report this client will prevent any negative JSS repercussions even if the client leaves negative private feedback. But regardless of the possible repercussions, you obviously can't agree to work at half your specified rate for a completely dishonest client. Keep in mind that the impact of jobs is WEIGHTED based on the dollar amount of earnings. So a zero-pay contract should have minimal impact no matter what the client does on his end with feedback.

[eraquintan]

This was so helpful. Will flag him and end the contract. Thank you so much!