How much is the Elance Service Fee, and when is it charged?

Elance charges a Service Fee between 4% to 6% of the total job value, plus payment processing fees. The fee decreases as you complete more business on Elance as follows:
 
4% (for a total of 6.75%) if the provider's past 6-month earnings exceed USD 40,000
5% (for a total of 7.75%) if the provider's past 6-month earnings are less than USD 40,000 but greater than USD 10,000
6% (for a total of 8.75%) if the provider's past 6-month earnings are less than USD 10,000

NOTE: For providers with a free Basic membership plan, the Service Fee is always 6% (for a total of 8.75%).

The total job value is the greatest of:
 * the awarded proposal amount
 * the total invoiced amount
 * the total paid amount

How much is the Payment Processing Fee?

When an employer pays the provider via Elance, he/she can choose to pay via credit card, PayPal and other methods. There are fees associated with these methods which are deducted by the payment processors before Elance receives the funds from the employer. To recover these fees, Elance charges a Payment Processing Fee of 2.75% at the same time as it charges its Service Fee.

When are the Elance Service and Payment Processing Fees deducted?

When an employer makes payment, Elance applies the Service Fee and the Payment Processing Fee at the same time as funds are deposited into the provider's Account. If no invoice has been issued and payment received within 45 days of the job acceptance date, Elance automatically applies the fees unless the job has been cancelled. The possible fee billing scenarios are described below:

Jobs using Standard Payment:

1. In most Standard Payment scenarios we charge the Service and Payment Processing Fees when the provider receives payment through Elance: the fees are automatically deducted from the payment, and the remaining amount is deposited into the provider's account.

2. In the event an employer makes a payment that exceeds the invoice amount, the fee is based on the payment amount, not the invoiced amount.

3. In the event there is no invoicing or payment activity on an accepted job in the first 45 days and the job was not cancelled by either party, we charge the applicable fees for the value of the accepted proposal on the 45th day.

Jobs using Escrow Payment (For more information regarding Escrow, click here.):

1. In most Escrow payments scenarios, we charge the Service and Payment Processing Fees when the employer releases funds from escrow and the provider receives payment. The Service and Payment Processing Fees are calculated based on the amount released.

2. In the event there is no Ecrow funding activity on an accepted job in the first 45 days and the job was not cancelled by either party, we charge the applicable fees for the value of the accepted proposal on the 45th day.

NOTE:  If the provider has a positive balance in the Elance account at the time the Service and Payment Processing Fees are due for payment, the fees will be deducted automatically from the provider's account.

Occasionally you may need to contact us to request a Fee Adjustment. You can do so by submitting a Request Fee Adjustment Form. To find the form:

1. Log in to MyElance.

2. Click the Workrooms > Working link on the left panel.

3. For your job, click on the 'Select Action' > 'Request Fee Adjustment' link on the right. 

4. Complete and submit the form.

NOTE: It may take up to 7 business days for Elance to complete the evaluation and processing of your Fee Adjustment Request.