A licensed, regulated system that protects both freelancers and clients. Learn the critical differences between Fixed-Price Escrow and Hourly Protection.
Quick Overview
Upwork Escrow holds client funds for Fixed-Price milestones. It releases funds when you (1) Submit work via the official button, and (2) the Client approves OR 14 days pass without action.Hourly Contracts do NOT use milestone escrow; they use "Hourly Protection" which tracks your screen and keystrokes to guarantee payment.Golden Rule: Never start fixed-price work until the milestone says "Funded".
Upwork Escrow Inc. is a licensed California internet escrow agent. It is legally separate from Upwork's marketplace to ensure fund safety.
Where money sits after the client's card is charged but before work is approved. This money is "reserved" for the project.
Where money lands after release. It sits here briefly during the security hold before you can withdraw to your bank.
This is "classic" escrow. You agree on a price, the client deposits it, and you get paid when done.
Never start work until the milestone shows as "Funded".
If a client creates a $500 milestone but only funds $5, payments are NOT guaranteed for the other $495.
This is your safety net against ghosting clients.
Hourly contracts do not use "funded milestones." Instead, they rely on Hourly Payment Protection.
Manual time is NOT protected. If the client card fails, you lose that money.
Sometimes things go wrong. Here is how the money is handled.
You get a notification. You can "Approve" (funds return to client) or "Dispute" (Upwork mediation starts).
Same process. You must approve the return of funds or dispute it to claim payment for work done.
Escrow protects the money after you get hired. But finding safe, verified-payment jobs is the first step.
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