We decided to remove the escrow system. The parties can use the services of any third party escrow providers.
This is one of the oldest escrow services on different online transactions. One of their services includes provision of escrow on online freelancing work. The client is required to deposit 100 percent of the transaction amount before the work begins. This means that the freelancer is 100 percent protected from losing the money from the project. Upon satisfaction that the job is well done, escrow releases the funds.
It also provides the option of milestone payments. This is a situation where payments are made from the escrow by bits amid completion of the job in parts.
The site provides arbitration if there is a dispute between the freelancer and the client. The arbiters are professionals and organizations that are well known. This ensures that the arbitration process is fair to both parties and the parties reach upon an amicable solution. To prevent inconveniences, the parties are given duration of 10 days to self-mediate and if they do not come to an agreement within that time, they are forced to arbitration. The site provides a solution for protection against fraud on online transactions.
We agree that using escrow is good especially for high priced long-term projects. However, the escrow feature does not need to be on the freelancing website as a requirement for working on the project.
In case there is need to escrow, why not use the services of professional escrow services providers. This is allowed if the freelancer feels there is need to secure the payment on the project. The freelancer can also work on milestones and direct payment in case there is need for an assurance of payment.
Other escrow services that needs to be mentioned are skrill.com and transact.com