Escrow, Payment & Dispute Resolution Policy

Updated on 7 March 2026

4 min read

Table of Contents

Part A: Plain English Summary
- How Money Moves and Problems Get Solved
- The Simple Truth
Part B: Escrow and Payment Terms

Doc Summary

Module: Utsav Works™ (Financial Protections)
Document Type: Policy
Trademark: Utsav Works™ is a trademark of MyMahotsav Futuretech Ltd
Effective Date: 24th February 2026
Version: 1.0

Part A: Plain English Summary #

How Money Moves and Problems Get Solved #

This policy explains how funds are protected in escrow, when payments are released, and what happens when disputes arise between Clients and Freelancers.

The Simple Truth #

Escrow Protects Everyone: Funds are held securely by our payment partner—Clients can’t take them back without reason, and Freelancers can’t access them until work is approved .
Milestone-Based Releases: For larger projects, you can break payments into milestones. Each milestone is funded separately and released upon approval .
Disputes Happen—We Help Resolve: If you can’t agree on quality or completion, our dispute resolution team mediates. If that fails, arbitration may be needed .
No Chargebacks: Attempting to reverse payments through your bank instead of using our dispute process violates our terms and may result in account closure .
Fees Are Transparent: Platform fees are deducted before Freelancers receive payment .

Part B: Escrow and Payment Terms #

1. Escrow Account STRUCTURE #

1.1 Escrow Partner: All payments are processed and held by our third-party payment partner in segregated escrow accounts. MyMahotsav does not hold client funds directly .

1.2 Trust Arrangement: Funds held in escrow are protected and not available to MyMahotsav’s creditors. In the event of our insolvency, funds would be distributed according to these Terms.

2. FUNDING REQUIREMENTS #

2.1 Fixed-Price Projects: Clients must deposit the full project amount (or full milestone amount) into escrow before work commences .

2.2 Hourly Projects: For hourly contracts, Clients must maintain a valid payment method. Funds are deducted weekly based on Freelancer-reported hours (subject to Client approval).

2.3 Tasks: Full payment is required at time of order.

3. PAYMENT RELEASE #

3.1 Client Approval: Funds are released from escrow when the Client:

Explicitly approves completed work (or milestone)
Fails to respond within the review period (automatic approval)
Agrees to release through dispute resolution

3.2 Milestone Projects: For projects with multiple milestones:

Each milestone must be separately funded
Funds for subsequent milestones are released only after prior milestones are approved
Clients may terminate after any milestone without obligation for future milestones

3.3 Hourly Projects:

Freelancer submits weekly timesheet with description of work
Client has [5] days to review and dispute hours
Approved hours are paid automatically
Disputed hours are held pending resolution

3.4 Platform Fee Deduction: Platform commissions and fees are deducted before payment is released to Freelancer .

4. REFUNDS #

4.1 Before Work Begins: Full refund to Client.

4.2 During Work: Client entitled to refund of unearned funds. Completed, approved work is non-refundable.

4.3 After Approval: No refunds for work that has been approved and paid.

5. DISPUTE RESOLUTION PROCESS #

5.1 Direct Negotiation: Parties must first attempt to resolve disputes directly through Platform messaging .

5.2 Platform Mediation: If direct negotiation fails, either party may request mediation by filing a dispute through the Platform.

5.3 Mediation Process:

Step	Timeline	Description
1. Dispute Filed	Day 0	Party submits dispute with evidence (messages, deliverables, specifications)
2. Response	Within 3 days	Other party responds with counter-evidence
3. Review	Within 7 days	Platform mediator reviews evidence
4. Recommendation	Within 10 days	Mediator issues non-binding recommendation
5. Acceptance	Within 3 days	Parties accept or reject recommendation

5.4 Mediation Outcomes: Mediators may recommend :

Full payment to Freelancer
Partial payment (with adjustments)
Refund to Client
Additional work to cure deficiencies

5.5 Binding Arbitration: If mediation is rejected or fails, either party may pursue binding arbitration under the Platform Terms of Service .

6. DISPUTE EVIDENCE #

6.1 Acceptable Evidence: Platform mediators consider :

Project requirements and specifications
Bid/order details
Platform messages (all project communications)
Deliverables submitted
Feedback and revision history
Expert opinions (if applicable)

6.2 Communications Off-Platform: Communications occurring off-platform will not be considered in dispute resolution .

7. CHARGEBACKS #

7.1 Definition: A chargeback occurs when a Client disputes a charge with their bank or credit card issuer instead of using the Platform’s dispute process.

7.2 Consequences: