Escrow Payement System Gateway
The beauty of the escrow payment system that can be installed in the freelancer wordpress theme, is that it allows freelancers be paid securely by the project owners for the project they are completing. With our escrow system, there is a neutral third party that will hold the money securely while the project is being completed and most importantly, delivered.
The escrow system works in conjunction with the credit e-wallet system that is in the theme and the site administrator will play a role in holding up the money between the project owner and freelancer while the work is being delivered.
How this escrow system works ?
The complete workflow of the escrow plugin system can be described below: so, once an employer will award a project to a freelancer he will have to pay by a payment method (PayPal, bank, stripe, or whatever method the admin of the site allows) and the funds will be held by the site admin in the respective payment gateway account. After the payment, the freelancer will see the money into his site e-wallet’s account but he wont be able to request withdrawal on it until the project owner will release the escrow.
After the freelancer marks the project as delivered, the employer will check his work, and if all ok, he will mark the project as completed and release the escrow. At this point the freelancer will see the money into his e-wallet and can request for withdrawal.
The admin will see the request for withdrawal, and process the money transfer through the accepted payment methods (admin sets the accepted payment methods from which freelancer will choose) and then marks the withdrawal as completed. At this point the funds will not show anymore into the freelancer’s e-wallet account.
Processing commission fees
Your commission fees are calculated automatically and there is no manual work involved here for you, as the site admin. The only manual thing is when you process the withdrawal requests which could be set once a month for example so you dont do multiple smaller transfers for a user, but just one big transfer per month for each user.
Example from A to Z how this e-wallet thing works
– so user1 posts a project of 100$ in your site
– freelancer1 bids 100$ to the project, and user1 choses as winner
– after that they must deposit escrow (either by paying by paypal lets say or other payment gateway you might have, or through the ewallet if they have available) and when paying the 100$ is in the paypal account of the site admin
– also in the site it shows in pending outgoing payments for user1
– freelancer1 sees as pending incoming payment
– after the freelancer1 marks the project as delivered, the user1 is notified and can mark the project as completed, so he confirms
– in the end he releases the payment (from finances section)
– at this time the freelancer will see in his ewallet account 90$ (assuming that 10% is your site commission fee, which can be set from admin area)
– remember that real money in your paypal is 100$
– at this point the freelancer1 requests withdrawal of his 90$ through paypal, for example
– you as the admin do a manual payment of 90$ from your paypal to his
– in the end he is with 0$ balance in the site
– and you end up with 10$ balance in your PayPal, thats your fee
– imagine 100 of these transactions, and you will end up in the very end with your website fees in your paypal