Understanding Upwork Payment Methods

Upwork provides a secure and flexible payment system which ultimately gives you the control over when and how you get paid. Here is a simple breakdown of how the payment methods work on this platform.

Fixed-Price Contracts

• For fixed-price contracts, payment is protected through Upwork’s escrow services. The client will often pay the agreed amount upfront which will then be held in escrow until the contract is completed.
• Upon completion of the contract terms, the funds are released to the freelancer.
• Upwork takes a percentage of this payment as a service fee.

Hourly Contracts

• Hourly contracts are invoiced weekly. You’ll log hours worked on the project, then the client is automatically billed.
• Upwork Protection comes into play here. The Upwork app takes screenshots while you work. This ensures proof of work done and makes sure you get paid for every hour worked.
• Once the hours are approved by the client, payments are processed. The standard processing time is about 10 days.

Withdrawal Methods

Once you have received your payment, there are several methods by which you can withdraw your funds from Upwork:

• Direct to U.S. Bank (ACH) – This is a free service available only to U.S. users.
• Direct to Local Bank – This service is available to international users. Fees apply.
• Wire Transfer – Fees apply for this service.
• PayPal – It’s quite popular due to its convenience. However, PayPal transaction fees apply.
• Payoneer – A convenient option for international users, but fees apply.

Remember, the key is communication. Make sure you understand the payment terms before starting a contract with a client. This will ensure a smooth transaction and help you avoid potential disputes.