Payment Protection FAQ

How We Protect Both Sides

Our dual-sided protection system ensures fair treatment for clients and freelancers. Here's how disputes, refunds, and payment protection work on Phasely.

Client Protection

Safeguards against inactive or unresponsive freelancers

  • 90-day automatic hold expiration
  • 7-day warning email before expiration
  • Dispute funded holds anytime
  • Guaranteed refund path for non-delivery

Freelancer Protection

4-layer anti-fraud system prevents refund abuse

  • Dispute requirement (instant notification)
  • 48-hour response period
  • Evidence check blocks fraudulent refunds
  • Admin review for disputed refunds

4-Layer Freelancer Protection System

1

Dispute Requirement

Clients cannot refund funded holds directly—they must open a dispute first. You receive instant notification when a dispute is opened, giving you a chance to respond.

2

48-Hour Response Period

Refunds are blocked for 48 hours after a dispute is opened. This gives you time to upload proof of completion, provide explanations, and defend your work.

3

Evidence Check

If you've uploaded proof-of-completion files, refund requests are automatically blocked. The system flags it for admin review, preventing clients from getting free work.

4

Manual Arbitration

When evidence exists, our support team manually reviews the dispute. We check proof files, message history, and project requirements before making a decision.

Common Questions

What if the freelancer uploads fake proof files?

Our admin team manually reviews all disputed refunds with evidence. We check:

  • Do files match project requirements?
  • Are screenshots legitimate or doctored?
  • Does message history support completion claims?
  • Is work usable and deliverable?

Fraudulent evidence results in account suspension.

What if I approve release by mistake?

Once you approve release, payment is immediately transferred to the freelancer and cannot be reversed. Always double-check deliverables in the Files tab before approving. If you're unsure, use "Request Changes" instead to ask for clarifications.

Can I extend the 90-day expiration?

Yes! Any activity automatically resets the expiration timer:

  • Freelancer requests release → expiration cleared
  • Either party sends a message → hold remains active
  • Files uploaded → hold remains active
  • Changes requested → hold remains active

The 90-day limit only applies to completely inactive holds with zero communication.

What happens after 48 hours in a dispute?

After the 48-hour response period:

  • No proof uploaded: Client can request refund (automatically approved)
  • Proof uploaded: Refund requires admin review (manual decision)
  • No action from either party: Support team reaches out for resolution

The 48-hour period ensures freelancers have fair opportunity to defend their work.

How long does admin review take?

Typical response times:

  • Urgent disputes: 24-48 hours
  • Evidence review: 2-3 business days
  • Complex cases: Up to 5 business days

You'll receive email updates throughout the process. Include your Hold ID when contacting support for fastest response.

What counts as 'proof of completion'?

Valid proof of completion includes:

  • Screenshots of delivered work or deployed features
  • Source code files matching project requirements
  • Design files (PSD, Figma, Sketch, etc.)
  • Documentation, reports, or written deliverables
  • Video recordings demonstrating functionality

Mark files as "Proof of Completion" when uploading to ensure they're reviewed during disputes. Files should clearly demonstrate work was completed according to original agreement.

Can freelancers dispute if they delivered work but client won't approve?

Currently, only clients can initiate disputes. However, if a client is unreasonably withholding approval despite completed work, freelancers should: (1) Upload all proof of completion files, (2) Send detailed message explaining completion, (3) Contact support at support@phasely.tech with your Hold ID. Our team will review and can manually release payment if work clearly meets requirements.

What happens if neither party responds to a dispute?

If a dispute is opened but neither party takes action for 7 days, our support team will proactively reach out to both sides via email. We'll request additional information, review any available evidence, and make a decision based on the hold history, uploaded files, and message logs. Unresponsive parties risk unfavorable outcomes.

How are partial refunds handled?

Partial refunds are available through admin review. If work was partially completed or doesn't fully meet requirements, our support team can split the payment based on: (1) Percentage of deliverables completed, (2) Usability of delivered work, (3) Agreement between both parties. Contact support to request partial resolution.

Do I get refund fees back?

Stripe processing fees (2.9% + $0.30) are non-refundable as they're charged by Stripe when payment is made. Phasely platform fees (2.5%) are fully refunded. For example, on a $100 hold: you paid ~$105.50 total, refund returns $102.50 (original amount + platform fee). The ~$3 Stripe fee is not recoverable.

Still have questions?

Our support team is here to help with any disputes or payment questions.