TheHive payment system is integrated with Escrow – a feature that helps to make TheHive a trustworthy marketplace. Currently, Escrow works with Paypal Adaptive and TheHive’s Credit system to hold money as a neutral third party in the transaction, until the service promised by the freelancer has been fulfilled and is deemed by the employer to be of acceptable quality.
With Escrow, TheHive acts a contractor between the freelancer and employer. Whenever an employer accepts a bid, the money for their project’s budget (which includes a 10% commission that is due to TheHive) is transferred from the employer’s Credit balance or their Paypal account to TheHive. TheHive will keep this money until the project is completed.
If a dispute arises between the employer and the freelancer, TheHive will determine, based on the reasons provided by both parties, to either refund the money to the employer, or transfer the payment to the freelancer. Hence, the Escrow feature allows TheHive to ensure the safety of each transaction. Let’s look at this example for a better understanding of how the Escrow system operates:
When the employer accepts a bid, funds for the project budget and TheHive’s commission fee is taken from their Paypal account or from their Credit balance. TheHive will hold the funds while the project is in progress. Once the project is completed, money held in Escrow (which does not include TheHive’s commission) is transferred to the freelancer. If the freelancer enters into a Fixed-Price Contract with the employer, a specified portion of the funds is transferred to the freelancer with each milestone that is met. In case your site uses Credit, money is transferred to the available balance column of the freelancer.