HackWork’s Escrow Payment System for Projects
When building the HackWork freelance network, one of the most important features we worked on was our secure escrow payment system. This system is built to ensure the safety of the client’s money and the freelancer’s time. Here’s how it works!
1. Work agreement contract
When a client and freelancer connect, the client sends a work agreement to the freelancer outlining the projects requirements. This is done with our built-in contract system. The project is initiated once the freelancer agrees to and accepts the contract.
2. Client deposits into escrow
Before any work is started, the client deposits their funds to HackWork’s escrow payment system. The client has the choice to deposit their payment in one of two ways.
Escrow payment in full:
The client deposits the entirety of the project payment
Partial milestone payments:
The client divides the work and payments in different milestones
Once the payments are made into the escrow, both users are notified and the freelancer begins their work on the project.
3. Once work is complete, the client releases funds
When the freelancer completes the required work, they mark their project as delivered. The client is then able to review the work and release the payments from escrow. If the project is milestone-based, the client releases the payments as the milestones have been reached.
What happens if the freelancer doesn’t complete the work as agreed upon?
If the freelancer does not complete the work as agreed upon in the contract, a client is able to initiate a dispute to involve a hackwork team member. Our team aims to resolve the disputes with a fair outcome within 1 week of initiating. If HackWork agrees the freelancer did not complete the work to the level stated in the contract, your money is deposited back into your account.
What happens if the client doesn’t release the funds from escrow as agreed upon?
If the client does not release funds as agreed upon in the contract, a freelancer is able to initiate a dispute to involve a hackwork team member. Our team aims to resolve the disputes with a fair outcome within 1 week of initiating. If HackWork agrees the client is maliciously withholding payment, the money is released to the freelancer’s account.