What is XPlace Secure Escrow™?
XPlace Secure Escrow™ allows you to securely and conveniently pay experts by depositing funds in a secure 3rd party account and release those funds to the expert only when the project or project milestone has been completed to your satisfaction.
For experts, using XPlace Secure Escrow™ reduces any potential risk of delay or non-payment by the client. While for clients, using the XPlace Secure Escrow™ ensures the quality of the expert's deliverables and allows for the comfortable management, monitoring and coordination the project work.
Using the XPlace Secure Escrow™ is free for freelancers and experts!
Deposit funds into
secure escrow account
Release funds when
work is done!
Why are the advantages of using XPlace Secure Escrow™?
The advantages of using XPlace Secure Escrow™ are significant since escrow works for you! When funds are deposited into XPlace Secure Escrow™ clients are assured that they will get the work they ordered, while experts are assured that they will get paid – so both can continue doing what they do best worry-free, knowing that the funds are being held until the project (or project milestone) has been completed to the client's satisfaction.
Why should I use XPlace Secure Escrow™?
XPlace Secure Escrow™ was developed after more than a decade of experience in the freelance market and understanding the real underlying needs of clients and freelancers. XPlace Secure Escrow™ has numerous advantages, including:
- Ensures client satisfaction from the freelancer's work and eliminates any concerns about the quality of work
- Ensures the seriousness of the client and reduces any potential risk of delay or non-payment
- Allows payment in an efficient and simple manner
- Helps organize payments, communications, and project work throughout various stages of the project
- Reduces exhausting bureaucracy and logistics between clients and experts
- Holds funds in a controlled and secure escrow account
- Provides a convenient way to manage funds and payments
- Provides a quick and efficient dispute resolution process when disputes arise
When should I use XPlace Secure Escrow™?
Use XPlace Secure Escrow™ at the start of each project by depositing funds for the entire project or for each milestone of the project as agreed-upon in advance with the freelancer. To reduce any risk of payment delay or non-payment by the client, freelancers should only start working on the project after the client has deposited funds into escrow, as reflected in the project workspace.
How do I deposit funds into XPlace Secure Escrow™?
Clients can deposit funds into XPlace Secure Escrow™ via their credit card or, if their wallet balance allows it, via their wallet. To deposit funds via wire transfer, PayPal, check or other means, please email XPlace to: support [at] xplace.com.
Who deposits money into XPlace Secure Escrow™?
Only the client (the poster of the project) deposit money into XPlace Secure Escrow™. Funds are released by the client upon the expert's release request and after the client approves the work they received from the expert.
Where are the XPlace Secure Escrow™ funds actually held?
XPlace manages its XPlace Secure Escrow™ account in a fully-insured escrow account managed at Bank Hapoalim Ltd. (Israel's leading commercial bank) under applicable laws and regulations.
Does XPlace charge a fee for using XPlace Secure Escrow™?
When a freelancer / expert receives funds from a project's secure escrow account, XPlace charges a 0.0% commission. A similar fee is charged for receiving direct and bonus payments via the site. This fee is necessary to cover the costs of managing and supervising XPlace Secure Escrow™ to which XPlace is exposed.
When a client deposits funds into a project's secure escrow account, XPlace charges a 10.0% commission. A similar fee is charged for sending direct and bonus payments via the site. This fee is necessary to cover the costs of managing and supervising XPlace Secure Escrow™ to which XPlace is exposed.
Receiver fee (e.g., freelancer): 0.0%
Sender fee (e.g., client)): 10.0%
Who pays the XPlace Secure Escrow™ fees?
Receiver fee (e.g., freelancer): 0.0%
Sender fee (e.g., client)): 10.0%
When using XPlace Secure Escrow™, can payments be split to reflect the different project milestones?
For smaller projects with budgets of up to 5,000.00 ILS, XPlace recommends that clients deposit the full amount. However, based on specific terms between the client and expert, parties may agree on a number of payments that correspond to the project's different milestones. For projects with budgets of over 5,000.00 ILS, XPlace generally recommends the following milestone and payment schedule:
- Initial milestone: Deposit 30% of the project's budget before the freelancer starts work on the first phase of the project.
- Second milestone: Deposit another 30% of the project's budget (after releasing the initial deposit from XPlace Secure Escrow™) before the freelancers starts work on the second phase of the project.
- Final milestone: Deposit the last 40% of the project's budget (after the releasing the second deposit from XPlace Secure Escrow™), before the freelancer starts work on the final phase of the project.
How can I use XPlace Secure Escrow™ for per-hour projects?
If an expert has priced their work on a per-hour basis rather than a fixed-price, we recommend agreeing in advance on a rough total effort estimate for the entire project, and split that estimate into agreeable milestones. For example, if the entire project is estimated at roughly 60 hours, you can establish three milestones each comprising 20 hours. The client can then make three separate deposits into the project's secure escrow account, each consisting of 20 hours × the expert's hourly rate.
Can I pay an expert for work they already performed without using XPlace Secure Escrow™?
Yes. Apart from using XPlace Secure Escrow™, you can pay your expert directly for work they've already performed to your satisfaction via the expert's personal payment page, which you can access from the expert's profile. This allows you to pay experts directly without the funds being held in XPlace Secure Escrow™. The money will be immediately available to the expert.
I received a bid with a precondition of depositing funds in XPlace Secure Escrow™. What does it mean?
When bidding, most freelancers will include an escrow funding request as a prerequisite for selecting their bid. This helps them ensure the seriousness and credibility of the client. XPlace encourages freelancers to request initial XPlace Secure Escrow™ deposits when bidding in order to work securely and in accordance with XPlace's terms and conditions.
I sent my client a request to release funds from XPlace Secure Escrow™, but after a few days the client has not responded. What should I do?
After sending your client the work they ordered you can request the release of any outstanding funds from escrow. If the client does not respond to your request, the funds will be released automatically to your XPlace wallet after 20 days unless the client initiates a Dispute Resolution Process.
What are the terms and condition for releasing funds to the expert from XPlace Secure Escrow™?
As described in XPlace's Terms of Escrow, following are the release conditions to release funds from XPlace Secure Escrow™:
- The Client or Expert has approved the other party's Release request on the Site.
- The Client or Expert has failed to timely submit Contrary Instructions to the other party's Release request pursuant to the XPlace Dispute Resolution Policy.
- The Client has failed to approve or dispute payment in a timely manner for a Release request pursuant to the Terms of Service for XPlace Billing & Payments.
- The Expert requests a refund be issued to Client.
- The Client and Expert have delivered joint written instructions to XPlace authorizing a Release.
- The Client has failed to initiate a Dispute Resolution Request by the Automatic Release Date.
- The final binding award of a duly appointed arbitrator from which appeal is not taken.
- The final binding order of a court of competent jurisdiction from which appeal is not taken.
- The Client or Expert has failed to timely respond to an XPlace Dispute Resolution notification, Arbitration initiation notification, Mediation initiation notification, or otherwise failed to comply with the XPlace Dispute Resolution Policy.
How do I initiate a Dispute Resolution Process?
If you encounter problems when working with your expert while funds are held in XPlace Secure Escrow™ and you haven't been able to resolve the dispute independently, you can initiate an official Dispute Resolution Process from the project Workspace under the "Experiencing Difficulties?" link.
How can I learn more?
- Terms of Service for XPlace Escrow
- XPlace Dispute Resolution Policy
- XPlace Dispute Resolution FAQ (Frequently Asked Questions)