Understanding Upwork Escrow

What is an Upwork Escrow?

An Upwork Escrow is a feature that holds funds securely for a project until the work is completed and approved by the client. This system offers protection for both freelancers and clients to ensure a fair transaction.

How does it work?

• Client deposits funds: When a client hires a freelancer for a fixed-price job, they deposit the agreed-upon amount into an escrow account, before the work begins.
• Work begins: After confirming that the payment is secure in escrow, the freelancer can start work on the project.
• Submission of work: Once the freelancer completes the work, they submit it for review to the client.
• Client approves the work: If the client is satisfied with the work, they release the funds from escrow to the freelancer’s account.
• Dispute resolution: If there are any disagreements about the work done or the payment, Upwork helps resolve these issues.

Benefits of Upwork Escrow

The main benefit of Upwork Escrow is to provide both freelancers and clients with a secure and fair medium for transactions. It empowers freelancers with a sense of security that they will get paid for their work, once completed to the client’s satisfaction. It also assures clients that their funds are safe until they have approved the work done by the freelancer.

Note

For hourly projects, Upwork uses a different system known as the Hourly Protection. Instead of escrow, hourly projects are billed weekly.