When you want to hire a freelancer to do some design work, there is a problem-How to pay your service provider safely? You need to find a way to pay for services.
If you and the freelancer are friends or you have cooperated before, usually this is not a problem. You can use some online payment services to do that, such as Payoneer, Paypal, Skrill, etc. However, if this is the first project between you and the service provider, it may be an issue.
On a freelancer platform, such as Fiverr, Upwork, it is not a problem, because the platform provides relating service. Of course, there is some fee to do that. But if you don’t have an account or don’t plan to create an account on these platforms, how do you pay for services safely, especially for a large project? Perhaps the answer is an escrow service or milestone payment.
Escrow refers to money temporarily held by a third party before the transaction is finalized. The third party is neutral, and it helps to make the transaction safer. Escrow usually is used in international trade. But services are not physical goods, so if you are selling services, there will be some difference. We won’t talk more about escrow services here; you can get enough information on wiki.
Many companies offer escrow solutions for different kinds of transactions. When you try to use an escrow service, you need to make sure it is a reputable service and avoid fraudulent service providers. We introduce some online escrow services/milestone payment providers here.
Now Upwork provides a Direct Contracts service. As a buyer, you don’t need to have an account on Upwork. The seller who has an account on Upwork can create and send a contract to you. Then you can accept and deposits the contract payment in escrow. Once you are satisfied with the work, you can release the payment, and then the seller can get it immediately. For each contract, there is 3.4% fee. Your freelancer can create several milestones for your project too.
The domain name is escrow.com. But now “escrow” does not refer to this company now. When you buy a service from a seller, you can create milestones on escrow.com. Milestone transactions divide your transaction into several phases. For example, you can arrange the milestones like this: release 50% of payment when the draft is complete, and remain 50% upon the final completion.
You need to agree with the seller who will pay the fees. You can select seller, buyer or 50% seller/50% you. There is an online free calculator for you to calculate the escrow fee.
To use this platform, both buyer and seller must create an account on escrow.com.
It is an online escrow servicer located in Germany. Paylax can be used in more than 110 countries. And the user must be resident in one of the supporting countries. Please note that persons or companies domiciled or located outside the EU or Switzerland can only make and join escrow payments if the business partner is from the EU and pays the escrow fee.