Money is in Escrow...Is it a payment guarante...

moking01 · ‎09-29-2018

Hey guys,

So i finally got my first job on Upwork (YAAY!!) and the client had his account made a day prior to his job posting and he didn't verify his payment method when i first received his invitation.

Now i took his job and it shows the money is "In Escrow"....Can i get scammed at this stage by any mean ?

I did the whole job and submitted half of it to him and asked him for half of the contract for now...till i receive his comments to be implemented. But im just curious if he can refund his money and leave me with nothing or how can a client get tricky at this stage ? Just for my future reference.

petra_r · ‎09-29-2018

@Mostafa A wrote:

Now i took his job and it shows the money is "In Escrow"....Can i get scammed at this stage by any mean ?
I did the whole job and submitted half of it to him and asked him for half of the contract for now...till i receive his comments to be implemented. But im just curious if he can refund his money and leave me with nothing or how can a client get tricky at this stage ? Just for my future reference.

If the payment method is now verified you can start working on the contract.

But there is no such thing as "guaranteed" - you can still be asked for changes or if the client is not happy with your work there can be a dispute.

The most important part is that the payment method is indeed verified. If it is not then funds in Escrow are of no use to you because without the payment method being verified the money can never go to you.

You also should not do 100% of the work and only ask for half the money. How does that even make sense?

The client has a "request changes" button if they want something changed.

tranvanhieu · ‎09-29-2018

It happened to me one time that a client with verified payment method, I completed the job for them then submit. After several days later it became unverified. The contract is put on suspended immediately and I never got my money from the Escrow. Also no reply from that client.

Hieu T
Vietnamese translator

moking01 · ‎09-29-2018

And Upwork doesnt offer any support in such a case ?

JoanneP · ‎09-29-2018

Hi Mostafa,

When you submit a proposal, the Upwork system notifies you if the client has an unverified billing method. You don’t have to avoid these clients, but you please know that you cannot get paid until the client successfully completes billing method verification. Please check out this help article to learn more.

~ Joanne

moking01 · ‎09-29-2018

I did the whole job but i only submitted half of what he needs. Im still have more important files than what i already submitted.

Thats why i asked for half of my contract.

martina_plaschka · ‎09-29-2018

@Mostafa A wrote:
I did the whole job but i only submitted half of what he needs. Im still have more important files than what i already submitted.
Thats why i asked for half of my contract.

You should have set it up with 2 milestones, so that the client approves the first milestone when you submit 50% of the work. It is easier that way for everyone. I don't know how the client can pay only 50% when it is not set up that way, but I'm sure it can be done, somehow. What was your plan on how to do it?

petra_r · ‎09-29-2018

@Martina P wrote:
@Mostafa A wrote:
I did the whole job but i only submitted half of what he needs. Im still have more important files than what i already submitted.
Thats why i asked for half of my contract.
You should have set it up with 2 milestones, so that the client approves the first milestone when you submit 50% of the work. It is easier that way for everyone. I don't know how the client can pay only 50% when it is not set up that way, but I'm sure it can be done, somehow. What was your plan on how to do it?

It can be done but it is hassle for the client and fiddly and unneccessary, especially with a relatively low value contract.

The client would have to release the requested amount and then set up a new milestone.

I try not to force clients to jump through completely needless and pointless hoops if I can help it.

I also haven't seen the answer to the question whether the client's payment method is now verified or not...

moking01 · ‎09-29-2018

His payment method is verified.

martina_plaschka · ‎09-29-2018

@Petra R wrote:
@Martina P wrote:
@Mostafa A wrote:
I did the whole job but i only submitted half of what he needs. Im still have more important files than what i already submitted.
Thats why i asked for half of my contract.
You should have set it up with 2 milestones, so that the client approves the first milestone when you submit 50% of the work. It is easier that way for everyone. I don't know how the client can pay only 50% when it is not set up that way, but I'm sure it can be done, somehow. What was your plan on how to do it?
It can be done but it is hassle for the client and fiddly and unneccessary, especially with a relatively low value contract.

The client would have to release the requested amount and then set up a new milestone.
I try not to force clients to jump through completely needless and pointless hoops if I can help it.

I also haven't seen the answer to the question whether the client's payment method is now verified or not...

I politely disagree. Setting up a milestone is a matter of mere seconds. And if you had agreed to do it this way, there would be no need to write forum questions now, and worry about how to proceed, wouldn't it? It is designed to make the process easier and more reliable for both freelancer and client.

petra_r · ‎09-29-2018

@Martina P wrote:

I don't know how the client can pay only 50% when it is not set up that way, but I'm sure it can be done, somehow. What was your plan on how to do it?
It can be done but it is hassle for the client and fiddly and unneccessary, especially with a relatively low value contract.

The client would have to release the requested amount and then set up a new milestone.
I try not to force clients to jump through completely needless and pointless hoops if I can help it...
I politely disagree. Setting up a milestone is a matter of mere seconds. And if you had agreed to do it this way, there would be no need to write forum questions now, and worry about how to proceed, wouldn't it? It is designed to make the process easier and more reliable for both freelancer and client.

You can politely disagree all you like - the client does not HAVE what he should have to release half the money so should not be man-handled to release half the payment when he doesn't have anything usable. As it is impossible to set up milestone 2 without releasing milestone 1 first and so far all the client has is a PDF and nothing that can be even remotely USED this was mishandling of the contract.

@Martina P wrote:
@Mostafa A wrote:

Im waiting for his comments to apply them and send it as a full package after i receive 50% of my contract.
From what I learned through the forum, the amount in escrow can't be changed, so the client can't release just 50% of the total escrow amount, even if he wants to.

Yes, the client can release any amount under or over the milestone he or she jolly well likes.

If a client releases less than the milestone value the rest stays in Escrow and can be used to fund the next milestone, if the client releases more then the escrow funds are released and the client's payment method on file charged the amount in excess of the funded amount.

There are pitfalls with that, such as an amount in escrow but without a funded milestone can not be submitted againstfor example.

moking01 · ‎09-29-2018

I submitted 50% of his work on PDF files so that he can highlight what needs editing. What he actually needs is my original drawings.

Im waiting for his comments to apply them and send it as a full package after i receive 50% of my contract.

martina_plaschka · ‎09-29-2018

@Mostafa A wrote:
I submitted 50% of his work on PDF files so that he can highlight what needs editing. What he actually needs is my original drawings.
Im waiting for his comments to apply them and send it as a full package after i receive 50% of my contract.

From what I learned through the forum, the amount in escrow can't be changed, so the client can't release just 50% of the total escrow amount, even if he wants to.

petra_r · ‎09-29-2018

@Mostafa A wrote:
I submitted 50% of his work on PDF files so that he can highlight what needs editing. What he actually needs is my original drawings.
Im waiting for his comments to apply them and send it as a full package after i receive 50% of my contract.

That is NOT how you submit work on this platform (unless it was originally specifically agreed by the client!) Is that what the client agreed to before you started the job?

Money is in Escrow...Is it a payment guarantee ?