Learn what chargebacks are, what happens if a client files one on Upwork, and how to prevent them through clear communication and professional client management.
In this article
What is a chargeback?
A chargeback is what happens when someone contacts their bank and asks them to reverse a payment they already made.
When a client does this with a payment they made on Upwork, the bank or credit card company lets us know and we’re required to give them more information related to the charge.
Sometimes, clients file chargebacks when they feel they’ve received inadequate work; other times the freelancers haven’t done anything wrong and the client is trying to get out of paying for the services they requested and received. Chargebacks are against our Terms of Service, and if someone files a chargeback on work you’ve done, we’ll work together to resolve the issue.
What happens if my client files a chargeback?
If any action is required from you, we will let you know through email. Here are the basics:
- If you qualify for Upwork Payment Protection, your funds will be protected, though we may ask for your help in proving the validity of the charge.
- If we review the matter and determine you don’t qualify for Upwork Payment Protection, we’ll reach out to discuss your options.
- We will file a dispute with the bank or credit card issuer, so please share any evidence you have to show you provided the client with the services they requested. This will help us argue the dispute.
- Ultimately, the decision on our dispute is with the financial institution.
- Since chargebacks are against our Terms of Service, clients who reverse a payment will have their Upwork account suspended.
How can I avoid chargebacks?
To avoid chargebacks, consider the following tips:
- Establish good communication practices upfront. When you begin a contract, make sure to set clear expectations of the work you’re doing and the timeline in which you’ll complete it.
- Communicate with your client if you can’t meet work or timing demands. If something happens that may change expectations (like a timing or equipment issue), let them know right away.
- Never “ghost” a client. If you can’t complete the work, you can issue a refund.
- If a client is upset, try your best to work together to come to a resolution. It’s not okay to abandon a project without letting them know.