Upwork is a platform that allows freelancers and employers worldwide to connect with one another in order to find work or hire freelance workers who can complete projects as needed. The site has grown rapidly since its launch in 2010 and now boasts more than 200 million users across the globe.
With so many people using Upwork to find new jobs, there are also lots of questions regarding their services and policies. One question we often hear from both employees and job seekers is "how long does it take before I receive my first paycheck?" In this article, we'll provide an overview of Upwork's fees and policies related to payments.
Note: If you're looking for ways to make extra cash through Upwork, check out our list of best online tools for making quick bucks.
No, unfortunately Upwork doesn't pay directly into the account associated with your Upwork profile. Instead, they will withhold 10% of each invoice until the client pays the balance due. Once the balance is settled, Upwork transfers all remaining amounts owed to your UpWork bank account. You won't be able to access any portion of these funds until your Upwork fee is deducted. For example, if you were hired to create social media posts for $1 per post, but only received half of what was promised when you sent over your final invoice, then you would need to wait until you saw the other 50 cents deposited into your Upwork account before cashing out.
It may seem like a hassle waiting around for funds to arrive after sending in invoices, especially if you've already completed your project, but Upwork explains why withholding payment helps ensure clients have no reason to dispute paying their bills:
"We want to help protect you against fraudulent claims by requiring upfront payment and holding onto withheld monies at least until such time that you submit proof of payment." -- From Upwork's FAQs
In addition, Upwork says it uses third-party escrow companies to hold up to US$10,000 worth of withheld funds while processing transactions. This means that even though you might not see those funds transferred into your account right away, once you send off your invoice and Upwork receives notice from the escrow company, you should start seeing your own money appear within 24 hours.
If you haven't been assigned a particular project yet, don't worry. It's possible to sign up as a general contractor without having any assignments posted specifically to your account. Just click Manage Projects under My Account & Preferences and select No Assignment Required. Then simply search for open positions using Upwork's internal job board. Click Apply Now underneath any listings you'd like to apply for.
Generally speaking, most Upwork contract types require about two weeks between submitting your invoice and receiving payment. However, some contracts such as graphic design, writing, translation, voiceover, etc., can take much longer depending upon the type of service being provided.
For example, freelancer contracts typically involve multiple rounds where revisions are made along the way. Plus, designers, writers, translators, editors, and others sometimes need several days just to review edits and approve changes made by their clients. As such, the average turnaround time for getting paid via Upwork varies greatly based on which position you're applying for.
Another thing to keep in mind is that Upwork offers flexible billing options including PayPal Credit, Payza MoneyPak, Bitcoin, and checks. So you shouldn't feel discouraged if you choose to go the traditional route rather than taking advantage of newer methods.
Also note that Upwork provides various incentives for completing certain tasks quicker. These include bonus points that reward contractors every time milestones are reached. Plus, hiring managers can give special recognition awards to exceptional performers. Finally, you could potentially earn additional income by becoming a member of Upwork Affiliates, whose memberships cost nothing aside from a 5% commission on sales generated through referrals.
The amount of time it takes for Upwork to transfer funds depends largely on whether you chose to use an international wire transfer method or an automated deposit option offered by PayPal or Payza.
For starters, let's talk about wiring funds internationally. Generally, Upwork recommends setting up direct deposits with major banks outside of the U.S. because of high foreign exchange rates and transaction delays within the country itself. Here's a sample timeline showing how long it generally takes for wires to clear overseas:
Deposit Date - Client Payment Received
Processing Time - Funds Transferred To Bank
Bank Collection Time - Cash Deposited Into Your Account
International Wire Transfer Example
Date - Client Paid By Check Or Direct Deposit
Day 1 - Client Paid By Check
2 Days - Client Paid By Direct Deposit
3 Days - Checks Cleared Through Processing Facility
4th Day - Funds Transfers Complete
5th Day - Cash Remains Pending Withdrawal At Local ATM
Next, let's look at how fast you can expect funds to show up once you initiate automatic withdrawals from Upwork-provided accounts such as PayPal or Payza. Here's a breakdown of typical timelines:
PayPal / Payza Automatic Payments Example
Automatic withdrawal date - Amount withdrawn
Week 1 - $20
14 Business Days - $19.95
7 Business Days - $19.45
Business Weekends/Holiday Holidays - Next business day
When dealing with large sums of money, it's important to remember that delayed deposits aren't necessarily bad things. On the contrary, they actually serve as safety nets for helping prevent fraudsters from stealing your hard earned cash. That said, try to avoid putting too much faith in automatic deposits alone. Always follow standard banking practices such as keeping copies of canceled checks and reviewing statements regularly for suspicious activities.
As mentioned above, Upwork holds onto withheld funds for roughly 2 weeks prior to releasing them to the requesting party. During this time period, however, you still retain ownership of the product you created unless otherwise specified. Therefore, you can freely sell physical products like photos, art, furniture, electronics, jewelry, etc. But if you're hoping to receive digital products such as software applications, website designs, videos, music, etc., then Upwork requires written permission from customers. Otherwise, Upwork retains exclusive rights to distribute finished content throughout the world.
In short, Upwork isn't going to mail anything out for free. What's more, they reserve the right to refuse requests for items deemed offensive or inappropriate. And yes, they DO charge delivery costs whenever shipping packages containing digital files. Fortunately, Upwork recently introduced a new feature called Digital Delivery that lets you upload your item(s) directly to Dropbox or Google Drive instead of needing to email attachments directly to buyers. Unfortunately, this tool currently only works for individual sellers located within the United States.
Upwork is a freelancing website that has been around for years now and there are thousands of people who have earned money through this platform and many more earning passive income as well. It's one of the best websites where freelance professionals can work with clients worldwide.
However, some users say they haven't received any payments after submitting their requests while others complain about delays in getting paid by their employers. So what exactly goes behind these delays and why doesn't Upwork resolve them? Let us find out...
The process of withdrawing funds from Upwork depends upon which country you're based in or if you've set up an account outside India. The Indian users will need to wait for five business days before being able to withdraw funds whereas non-Indian users should wait at least three weeks. If you're not sure whether you'll be eligible to withdraw funds then check here.
To withdraw funds from Upwork, log into your profile and go to 'Withdrawal'. Once logged in click on 'View Funds' under the withdrawal option. You will see two options - immediate and regular withdrawals. Choose whichever suits you better according to your needs.
If you choose to withdraw immediately then you must submit another form called 'Requested Withdrawal Form'. This form helps you track all pending transactions and ensures faster processing when requesting a payout.
You may also want to review our guide on How To Request Money From Your Freelancer Account On UpWork.
No! Although Upwork claims to offer instant payments but in reality most of its employees make use of manual processes. There are times when even though we send messages to our client regarding payment, the same cannot reach their end because of technical glitches like server downtime etc.
So technically speaking, Upwork pays only once the transaction reaches its destination. But sometimes due to human error or poor system management, it gets delayed beyond acceptable limits.
For example, let's consider a scenario wherein you sent a message to an employer asking him/her to transfer $100 USD to your PayPal account within 24 hours. However, something went wrong with the file transmission and consequently, the amount was transferred to his bank account instead of yours. Now, suppose tomorrow comes and the employer replies saying he had no idea such things could happen and hence the delay occurred. In order to ensure smooth functioning of Upwork, we recommend following certain guidelines below:
1. Make sure all files are uploaded properly without any errors.
2. Check your email frequently to avoid missing important emails.
3. Update your status regularly so other members don't think you're busy doing nothing.
4. Do thorough research before bidding for projects.
5. Never bid above 40% of your hourly rate.
6. Use credit card rather than debit cards to prevent fraudulent charges.
7. Keep backups of all data including images, videos, audio files and documents.
8. Read FAQs carefully.
9. Ask questions whenever necessary.
10. Be patient and follow instructions precisely.
11. Pay attention during calls and read everything written on chat box thoroughly.
12. Always communicate clearly and concisely.
13. Don't forget to add "Thank you" in every communication.
14. Send files via cloud storage services like Dropbox and Google Drive.
15. Avoid using free web hosting providers since they often charge extra fees.
16. Ensure security features like 2FA enabled.
17. Install browser plugins like HTTPS Everywhere.
18. Turn off background notifications for better productivity.
19. Set up filters for email spam.
20. Create backup profiles for safety purpose.
21. Backup your passwords.
22. Get acquainted with safe practices for working remotely.
23. Follow social media policies strictly.
24. Protect yourself against phishing scams.
25. Take help of online tutorials if required.
26. Stay updated with new technologies.
27. Regularly update your skillset.
28. Build trust among your customers and potential employers.
29. Maintain good relationships with your colleagues.
30. Communicate effectively with team members.
As discussed earlier, Upwork follows specific procedures to ensure smoother operations. Each time someone submits a claim for payment, it passes through several stages. Firstly, a member verifies the request and marks it accordingly. Secondly, she/he reviews the task description and comments. Thirdly, the concerned manager approves the claim. Lastly, the manager sends the details to Upwork Support Team for further verification.
According to sources, Upwork's internal support staff spends almost 20 minutes per request to verify each payment request. And yes, it takes quite some time for small amounts too. For instance, let's assume if you asked for $5 then you'd receive the money after 10 days. Similarly, if you requested $50 then it would take 25 days. These lengthy delays occur mostly with smaller jobs.
In addition to this, Upwork uses third party companies to handle fraud checks and other administrative tasks. According to reports, these external agencies spend nearly 30 minutes verifying each payment request. Hence, it becomes clear why Upwork takes longer to process payments.
Moreover, Upwork has different types of accounts depending upon the type of job seeker you belong to. For Indians, it offers Personal Accounts whereas Non-Indians can opt for Business Accounts. All personal accounts require higher approval rates while business accounts tend to get lower approvals.
Lastly, Upwork employs strict anti-fraud measures to protect its members. As mentioned earlier, they employ several third parties to perform fraud checks and carry out identity authentication. Since both sides try to minimize losses caused by frauds, it results in prolonged waiting periods.
Since Upwork provides multiple methods to contact its customer service executives, you can easily escalate issues related to delayed payments. Here are few ways to deal with slow payments:
1. Contact the relevant department directly and ask them to expedite the matter.
2. Write a detailed feedback about the project along with your requirements.
3. Upload screenshots showing problems faced.
4. Report bad behaviour through ratings & reviews.
5. Try contacting managers personally or by sending private messages.
6. Leave negative reviews on the profile page itself.
7. Flag offensive posts.
8. Assign roles to teammates so everyone knows what they're supposed to do.
It is really irritating when you keep checking your inbox for messages left by employers yet none arrives. Or worse still, you look forward to receiving a reply from them but never hear back from anyone.
Here are some useful tips to identify fake messages that might land in your inbox. First of all, double check the sender name followed by proper spelling of words used in the mail. Second, confirm authenticity by clicking on link provided in the message body. Finally, search for the company name in Google with quotes included.
Another thing to note is that although Upwork promises quick payments, it may take anywhere between 3-45 days for funds to show up in your bank account. Usually, it takes much less time compared to traditional banks.
Let's assume you've finished working on a project and the deadline has passed. At last, you sent a message to your boss, informing her/him that you completed the assignment successfully. Now, just relax and sit tight until you start seeing those monthly salaries deposited in your account.
Whether you're an independent contractor or a freelancer looking for some extra cash in the middle of nowhere, finding decent gigs online is hard enough as it is. One popular way to find those jobs is through platforms like UpWork—or any other gig site that has similar features. However, many people are uncomfortable with submitting payments and then waiting forever to be paid.
Fortunately, there's one more option available if you want to speed up getting paid from clients who hire you on Upwork: Instant Pay. This feature allows users to submit their invoice immediately after they've completed a job order instead of waiting around for weeks or months until the project gets funded by the client. We'll explain exactly what this means for both parties involved.
So when should you use Instant Pay on Upwork? How much time will you need to wait before making your first withdrawal? And most importantly...how can you spot scammers so you don't waste your money? Let's dive right into these questions together!
If you've ever used Upwork, you know about the "Funds Transfer" step where you wait for 3 days to receive funds from your client. In case of Instant Pay however, all transactions happen instantly once you complete the job.
When you choose Instant Pay over Funds Transfer on Upwork, here's what happens: You finish working on a particular job and send out an Invoice straight away. Instead of waiting for the client to review and approve the invoice, which could potentially take several weeks, they just click "Pay Now". After that, the money goes directly to your bank account.
The process itself doesn't differ too much from normal procedures. When you create a new job on Upwork, you select either Instant Pay or Fund Transfers at checkout. The same applies when you log into your dashboard and view pending orders. If anyone chooses Fund Transfers, they'll see the typical prompt asking them whether they'd rather fund transfer their money via PayPal or Bank Account. But if someone chooses Instant Pay, they won't see anything else but the message saying they've successfully sent off the invoice.
It may sound strange at first, but since everything happens automatically without delay, you never have to worry about missing deadlines set by your boss. It also helps keep track of projects that require funding fast. For example, if you were hired to design a logo for a business and you already finished it, you wouldn't have to wait for three days to withdraw the money. All you would need to do is check if you haven't received a notification email yet.
However, the biggest advantage offered by using Instant Pay on Upwork is that you can avoid dealing with unpleasant situations such as having to deal with lengthy conversations trying to convince a client to release the payment after not meeting certain deadlines. As soon as you finish creating the task, you can focus solely on finishing that specific project while knowing that the money will come to you eventually.
Upwork states that its average payout period is between 1-30 days. So it depends on the type of contract signed between you and the client regarding when you expect to get paid. Some contracts might state earlier than 30 days, while others say later. Since we aren't able to read each individual agreement, our advice is to always go with the latter. That said, the best way to handle delays is to communicate clearly with your client beforehand. A basic rule of thumb is to ask for immediate payment whenever possible.
Also note that if you're relying on external services such as printing companies to deliver your product faster (e.g. shipping), remember to factor in additional costs for expedited processing.
For example, if you ordered 500 t-shirts from an apparel company, adding 10% for rush delivery will cost $50 per shirt. While you definitely shouldn't let yourself fall behind on paying your bills, you should also consider keeping tabs on your expenses so you know when to push back on unreasonable requests. Here's a helpful guide on negotiating terms with suppliers.
To ensure that you actually get paid, use two different methods to verify your identity. First, try to contact your client via phone call or text messages every now and again, even though you've been communicating mostly via emails. Second, look for evidence in your Upwork profile, such as photos showing proof of identification documents. These steps help protect against fraudsters who might impersonate you in attempts to defraud unsuspecting clients.
Another thing worth noting is that your credit card information isn't shared with third party processors. Therefore, no CVV code needs to appear on your statement. Also, because Instant Pay sends the invoice directly to your bank, it bypasses the possibility of fraudulent charges being made. Lastly, if something seems fishy about the transaction, report it to support. Once you reach out to customer service, Upwork will stop the charge from going through.
As mentioned above, sometimes clients might request more money than agreed upon before releasing the final payment. To prevent this situation, make sure you specify upfront how much you agree to accept as compensation for completing a given task. Otherwise, you risk being held accountable for extra fees that weren't discussed prior to signing the contract.
Lastly, you should familiarize yourself with Upwork's dispute resolution guidelines as well as any policies related to billing disputes. Depending on the nature of the issue, it may involve contacting the client personally to discuss the problem further.
While scams involving fake profiles abound on Upwork, identifying potential threats requires special attention. Most obvious signs include vague descriptions of tasks, lack of relevant experience, overly high rates, and poor English skills. Another red flag to watch out for are suspiciously short turnaround times. Unfortunately, many people turn to Upwork to earn extra income during COVID-19 pandemic. Although it sounds tempting, it's important to realize that many freelancers on Upwork struggle financially due to lockdowns imposed throughout 2020.
Remember that although earning extra income can be stressful, it doesn't mean you should compromise on safety standards. By following the tips outlined above, you can save yourself the hassle of wasting precious time trying to sort out problems caused by unscrupulous clients.
Just follow our battle-tested guidelines and rake in the profits.