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Payment Protection

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How payment protection works, the approval process, and requesting refunds

Last updated Jan 26, 2025 • 12 min read

What is Payment Protection?

Payment protection is a financial arrangement where PayHeld holds funds securely on behalf of both parties until agreed-upon conditions are met. Think of it as a trusted middleman ensuring fair transactions.

Key Principle

Money doesn't go directly from client to freelancer
PayHeld acts as trusted third party holding funds securely
Funds released only after work is approved by client
Protects BOTH parties from fraud and non-payment

Traditional Payment

Client
Direct Transfer
Freelancer

❌ No protection for either party

PayHeld Protection

Client
PayHeld Secure Hold
Work Approved
Freelancer

✅ Full protection for both parties

Clients Protected From

Freelancers disappearing with money
Low-quality or incomplete work
Undelivered projects
False promises and scams

Freelancers Protected From

Non-payment after delivery
Fake or fraudulent clients
Scope creep without compensation
Payment disputes and chargebacks

How Payment Protection Works (3-Step Process)

The payment protection process is simple and transparent for both parties:

1

Client Deposits Funds

Client pays via Stripe using credit card, ACH, Apple Pay, or Google Pay. Funds are immediately transferred to PayHeld's secure account.

Client charged immediately
Funds held by PayHeld (not freelancer)
Freelancer notified: "Funds secured"
Work can begin with confidence
2

Freelancer Delivers Work

Freelancer completes project according to requirements, uploads deliverables via the project dashboard, and marks it as "Complete."

Funds remain secured during work
Real-time project status tracking
File sharing and communication tools available
Client receives notification to review
3

Client Approves & Payment Releases

Client reviews deliverables and either approves the work (releasing payment) or requests revisions. After approval, secured funds transfer automatically to the freelancer.

Standard Payout
2-3 business days
Express Payout
Within 24 hours
Platform fee (2.9% + $0.30) automatically deducted • Transaction receipt generated

The Approval Process

Clients have three options when reviewing delivered work:

Option A: Approve Work

If you're satisfied with the deliverables, click "Approve Work." Funds are released immediately and the freelancer receives a payout notification.

✓ One-click approval • Instant fund release • Project marked complete

Option B: Request Revisions

If adjustments are needed, specify what needs changing with clear feedback. The freelancer makes revisions and re-submits for review.

✓ Unlimited revision requests • Funds remain secured • Clear communication

Option C: Raise Dispute

If work significantly differs from the agreement or isn't delivered, raise a dispute. Funds remain secured while the resolution process begins.

⚠ Both parties submit evidence • Platform mediation • Fair resolution

Auto-Release Protection

If the client doesn't respond within 7 days and no disputes are raised, funds automatically release to the freelancer. This prevents indefinite payment delays.

Note: Client can still request revisions during the 7-day review period

Requesting Refunds

Refunds can be issued under different circumstances depending on project status:

Before Work Begins

Full refund available anytime before the freelancer accepts the project. No questions asked.

✓ 100% refund (minus platform fee) • Instant processing • No freelancer approval needed

During Project (By Agreement)

Full or partial refunds possible if both parties agree. Document the reason in the platform and process within 5-10 business days.

✓ Mutual agreement required • Flexible amounts • 5-10 business day processing

After Dispute Resolution

Refund amount determined by resolution outcome. Could be full, partial, or split based on evidence and mediation. Platform decision is final.

⚠ Resolution-based amounts • Evidence reviewed • 7-14 day process

Important Refund Notes

Platform fee (2.9% + $0.30) is non-refundable
Refunds return to original payment method
Processing time: 5-10 business days
Dispute resolutions may take 7-14 days

Dispute Resolution

If issues arise that can't be resolved directly, PayHeld's dispute resolution system ensures fair outcomes:

When to Raise a Dispute

Work doesn't match agreed requirements
Freelancer becomes unresponsive
Quality significantly below expectations
Deliverables not provided
1

File Dispute

Click "Raise Dispute," describe the issue in detail, and upload evidence (screenshots, emails, files). Funds are frozen during resolution.

2

Evidence Collection

Both parties submit their case with supporting documentation. Platform reviews all evidence and facilitates communication through dispute chat.

3

Resolution

Three possible resolution paths based on case complexity:

Mutual Agreement: Parties negotiate and agree on split (fastest: 1-3 days)
Platform Mediation: PayHeld mediator reviews and proposes fair resolution (7-14 days)
Community Voting: Independent reviewers vote (>80% consensus needed, 14-21 days)

Possible Outcomes

Full refund to client
Full payment to freelancer
Split resolution (e.g., 70% freelancer, 30% refund)
Partial delivery compensation

Security & Safety

Multiple layers of security protect your funds throughout the payment protection process:

Stripe-Powered Protection

Bank-level security, PCI DSS compliant, encrypted transactions, fraud detection, trusted by millions.

Segregated Accounts

Secured funds in separate bank accounts, not mixed with operating funds, FDIC insured up to $250,000.

Two-Factor Authentication

Required for fund releases, protects against unauthorized access, SMS or app-based verification.

Real-Time Monitoring

Fraud detection, suspicious activity alerts, IP tracking, device fingerprinting for security.

SSL Encrypted
PCI Level 1
FDIC Insured
Stripe Verified

Frequently Asked Questions

Start with Confidence

Now that you understand how payment protection works, you're ready to create secure projects.

Payment Protection | PayHeld Documentation