What is Elance Escrow?

For projects that use Elance Escrow, the buyer's funds are held securely in the project's escrow account. The funds are released from the Escrow account upon completion of services by the provider and only upon approval by the buyer.

There are absolutely no fees for using Elance Escrow. Also, if you choose to use Elance Escrow, the following additional services are made available for the project. These services are also provided without any fees:

   * Elance 1099 Service (for U.S. buyers working with U.S. providers)
   * Elance Mediation (only available for Elance Escrow projects)

Elance Escrow: Why Use Escrow?

At no additional cost, Elance Escrow protects both the buyer and the provider. Buyer's funds are held securely until the services are provided satisfactorily. The provider can begin working on a project knowing that the buyer has provided project funding into the Escrow account. 

Elance Escrow: How It Works

1. Buyer posts a new Fixed Fee project specifying the use of Elance Escrow for project payments.

2. Service provider bids on the project agreeing to use Elance Escrow.

3. Buyer awards the project to the provider. Provider submits the Business Terms (including Escrow Milestones) for buyer approval.

4. Buyer approves the Business Terms completing the project award to the provider.

5. Before work begins on a project, the provider requests the buyer to fund the escrow account for the project. (The escrow account may be funded in full or a milestone at a time.)

6. The buyer deposits the requested funds into the escrow account.

7. Provider begins work on the project. (On an escrow project, the provider is not obligated to begin work on the project until the requested funds have been deposited into the escrow account.)

8. When the services and/or deliverables have been completed for a project milestone, the provider requests release of the milestone.

9. If the buyer is satisfied that the services have been provided in accordance with the project terms for the project milestone, the buyer releases the milestone. The milestone release results in the transfer of funds from the escrow account to the provider's Elance account.

Escrow Statuses

The status of each milestone is shown on the Business Terms page. Below are the list of statuses and the definition for each:

Funding requested: System or provider requests buyer to fund milestone.
Funded: Buyer funded the milestone and the funds are held in escrow.
Release requested: Provider has requested buyer to release held funds.
Released: Buyer has released funds out of escrow to provider.

For more detailed instructions, see the Buyer Instructions or the Provider Instructions.