First of all, we must be looking at an overview of escrow function. We need to clarify a number of questions to learn about the function.
Why you should use escrow and what happens if you do not use it?
About the freelancer: created the trust for freelancers, if we are going to work online for someone you do not know and after the task completed but you do not receive your money.
Or on the contrary, employer hires a stranger working for himself, asked to do 10, payment in full but then just got back 1 or 2 and the result is also quite bad. This is a way to lose money.
In the two cases above, The escrow system will help freelancers always get money if they have finished the job. Also the employer always paid for those who finished the job – not losing money for these results are not right.
Using escrow to increase the reliability for the website in long-term and it will reach many people.
Basic information about credit escrow
We can understand credit is a point, one point is one unit of money.
If the system is using $ then 1 credit is 1$.
To the admin: the system supports the following option:
Contract – when employer chooses a freelancer and make “Assign job” success, this is a 1 contract.
Setting commission of every contract (according to the percentage of contract ỏ fix number with all projects). Selecting the billing party for each contract – 3 options (employer, freelancer or divided each side)
How does credit work?
Employer posted a job, freelancer will bid on this job.
Employer will review profile of the freelancer or send a message to find appropriate candidate.
Click butto: “Hire freelancer” and the system will display a form with the information of this contract and the amount of fee commission.
Click button “Assign job” – the system will check immediately an account (credit number) of employer and check this enough to pay for this contract or not.
1a) If enough, the job is assigned and the system deducts the money from employer’s account for this contract.
1b) If not enough, it will show notice to employer. So the employer must purchase credit to rent the freelancer.
The way to purchase bid. In the page “My credit” has the button “Buy credit”. Employer click that link and redirect to the page “Buy credit”. Next, in this page, it has package with the money, for example, the package has 100$, the user will buy 100 credit if they choose this package.
Employer chooses 1 package in the list of available package then select the method of payment (via PayPal or cash)
If payment through PayPal, the system automatically approve the order and credit will add automatically in employer’s account.
Note: The information credit is saved in database of the system
If payment through by Cash, employer must meet the website admin directly and give a cash or cash transfer through ATM. Then admin will approve this order. After the admin approved, the number of credit will be added in employer’s account.
2) Project done
During the chat, The freelancer can tell the employer that the project is done or click the button “Mark as complete” to tell the employer know that the project was finished.
The employer check message or email and see the finish project. Control the result of the work and finish the project by click on the button “Mark as finish”
After the “Mark as finish” , the system automatically transfer number of credit ino freelancer’s account.
In this case the employer is not satisfied with the result (run out of the deadline, not doing through requirement) or employer do not click button “Mark as finish” to finish the job, leading to the project is not finished and money not on Freelancer’s account.
In this cases, the system supports 1 function which is called dispute to the two parties claiming their rights.
After the one sides submitted 1 dispute, system will update job status become disputing status, at the same time, let admin know of dispute in this job.
Admin will check and asked two parties to have a decision for the winner.
3.1) If admin select employer wins, money will automatically return to the employer
3.2) If Freelancer wins, credit will be added into freelancer’s account.
Note: with 3.2 case then the fee commission will not be refund if the commission fee payment is set by the employer.