When you work with a freelancer on UpWork, you can use our platform to securely transfer funds for hourly or fixed-price contracts. When you do this, the money is held in an account called an escrow account.
This account is like a virtual lockbox: It’s designed to protect you (the buyer) and your freelancer by making sure that money changes hands only when both parties are satisfied.
There are three key moments when funds move in or out of your escrow account:
- When you approve work and release payment
- When your freelancer completes hourly work
- If you or your freelancer dispute a contract
Approving Work and Releasing Payment
As the buyer, you always have the final say on whether the work your freelancer delivered meets the standards laid out in the contract. If it does, you can release all or part of the funds to your freelancer.
You can also leave feedback for your freelancer once the job is complete.
Completing Hourly Work
If you’re paying hourly, funds are released automatically every week based on the hours tracked through UpWork’s desktop app or mobile app. You can also release payment manually at any time through the app or website.
If no hours are tracked during a given week, no funds will be released that week.
Disputing a Contract
If there’s ever a disagreement about whether work was delivered as agreed, either party can submit a dispute. Once a dispute is filed, all future payments on that contract will be held in escrow until the dispute is resolved.
The bottom line is that escrow protects both buyers and sellers on UpWork by holding payments until work is completed satisfactorily. This system gives buyers peace of mind knowing that they won’t be taken advantage of, and it gives sellers assurance that they will receive payment for their services.
