One thing most freelancers fear is not getting paid for their work. It's heartbreaking to pour your sweat, blood, tears, and time into a big project only to not be paid for it in the end. However, it doesn't need to be a nightmare. There are ways to ensure your clients pay you on time. The use of an escrow service is one solution.
In escrow, the client has to pay the amount before you start working on the project. A third party holds the payments and releases them to you once you have met the client's satisfaction. You might be wondering now what happens if you submit your work and your client does not respond. Your escrow service provider will release the funds in your favor in this case.
If you are a freelancer, you deserve payment protection. With that, you can rest assured that all of your hard work is well rewarded.
What is an escrow service?
The term "escrow" refers to a financial instrument in which a third party holds assets or escrow money on behalf of two other parties who are in the process of completing a transaction. A typical escrow account is composed of escrow fees that are managed by agents that hold the funds until approval is received or until predetermined contractual obligations have been met. You can use escrow to hold money, securities, funds, and other assets.
Another way to describe it is that two parties use it when they are completing a transaction, and one of them has some uncertainty about whether they can complete the transaction. Escrow is used in different contexts, including online transactions, banking, intellectual property, real estate, mergers and acquisitions, and the legal field. Escrow accounts are managed by various third-party organizations, including escrow companies, escrow agents, and mortgage servicers.
For e.g.- You are a freelancer and your client has agreed to pay Rs 1,500 for a logo design. Your client will deposit Rs 1,500 in an escrow account before you start working. This money will be released once the client receives the finished product, which in this case is the logo. As long as the project is not complete, the money is stuck in an account that you nor the client have access to. Following completion of the project and delivery of it to the client and the client's approval of the work as complete, the payment will be released to the freelancer.
It may be necessary to establish milestones according to the project's complexity.
Escrow Service For Freelancers -
If you use an escrow service, clients feel more comfortable paying you upfront. Escrow services hold the funds on behalf of your clients and release them only after you have reached the milestones outlined in your contract. Despite the fact that your client retains control over when funds are released, payments are guaranteed – and transferred more rapidly if you produce the high-quality work that you know you'll deliver.
Clients cannot withhold escrow payouts without a cause - and if you disagree with the client's reason, you have the option to call the payment into dispute and have an independent dispute resolution service evaluate the case. A detailed contract is very important in this regard. You will be paid if your contract is detailed and you have completed the work.
Escrow Service For Clients -
Until the job is approved, your deposit is protected by Escrow. An escrow account serves as a neutral venue where money is placed until a project, or piece of a project is finished. The money stays there until that individual or company fulfills their obligations so you can release the funds once you have been satisfied those obligations have been met.
If you hire someone for a fixed price, you deposit the funds in escrow. Once your freelancer or agency completes the agreed-upon work, you release the funds to them. It lets the freelancer or agency see that you are willing and able to pay as promised, and it lets you know that you don't have to pay until the job is done to your satisfaction.
Digital Escrow Service In India.
Digital escrow services are offered by many companies in India. Among the most trusted is Vouch.
Vouch’s Digital Escrow service is a transparent way for buyers and sellers to build trust and secure a clean transfer of product and payment. Sellers can feel assured that they will be fairly compensated promptly, and buyers will feel confident that their order will be delivered as expected and on schedule. If you ever come across a fraudster asking for OTP, asking you to scan a QR code, or asking you to click on phishing links, you can simply say no and ask him/her to proceed with the transaction through Vouch.
Buyer Protection - When you purchase something of high value from an entity you do not know, there are many risks involved. There is no way to determine whether an entity is trustworthy, and you may be defrauded. Vouch offers you the assurance you need when you make a purchase. We won't release the funds to the seller until you've received the item and are satisfied with the transaction. In addition, we ensure the Seller provides tracking information, as appropriate, for the transaction.
Seller Protection - Vouch ensures that, as a Seller, you’ll receive your money once you deliver the promised goods and/or services. You are taking certain risks when you engage in long-distance selling. Even if you sell to an individual or business within your neighborhood, you're still going to be dealing with someone you don't know. With Vouch's robust and trusted payment method, you'll never have to worry about selling to an unknown entity.
Check back here to learn more about Escrow and how to protect yourself from fraud.
Safety is not just about protecting your credit, debit card number, and UPI accounts. It's about having control of your money till you've received the product or service you bought online!
Now that we have you up to date on online safety, let's get your transactions secure on Vouch. It's just a click away.