Payment Processing
Opengates facilitates payments between Clients and Freelancers through a secure escrow system powered by Paystack, a licensed third-party payment processor. When a Client funds a contract, the payment is held in escrow until the contracted work is delivered, reviewed, and approved. By using the Platform, you also agree to Paystack's Terms of Service and Privacy Policy.
Escrow funds are held in a segregated account separate from Opengates' operating funds. Opengates does not commingle escrow with its own capital.
Escrow and Payment Release
When a Client approves completed work and releases payment, the funds are deducted from escrow and queued for disbursement to the Freelancer. The release of payment by a Client constitutes confirmation that the work has been received and accepted.
Auto-Release Deadline: If a Client does not approve or reject a completed delivery within 14 calendar days of the Freelancer marking work as complete, the payment will be automatically released to the Freelancer. The Client will receive reminder notifications before auto-release occurs.
Once payment is released (manually or automatically), it cannot be reversed by the Client except through Opengates' Dispute Resolution process.
Payout Schedule
Freelancer payouts are processed on a fixed schedule. Funds released by Clients are disbursed to Freelancers on the following days:
- Tuesday at 9:00 AM East Africa Time (EAT)
- Thursday at 9:00 AM East Africa Time (EAT)
Payments released by Clients between payout days will be queued and processed on the next scheduled payout day. For example, a payment released on a Wednesday will be processed on Thursday. A payment released on a Friday will be processed on the following Tuesday.
Public Holidays: If a scheduled payout day falls on a Kenyan public holiday, the payout will be processed on the next business day.
Processing Time: After disbursement, funds typically arrive in the Freelancer's bank account within 0–2 business days depending on the receiving bank.
System Downtime: If Opengates or Paystack experiences unexpected downtime on a scheduled payout day, payouts will be processed as soon as the system is restored.
Opengates reserves the right to delay or withhold payouts if there are concerns about fraud, disputes, or violations of these Terms. In such cases, the affected party will be notified.
Platform Fees
Opengates charges a platform service fee on each transaction, deducted from the Freelancer's earnings before disbursement:
- Standard Tier: 12% platform fee
- Premium Tier: 7% platform fee
The fee tier is determined by the Freelancer's active subscription plan at the time of payment release. The Client is charged a 5% service fee on the upfront deposit; no additional platform fee is applied beyond the agreed contract amount.
Currency and Conversion
All contract amounts are denominated in USD. Payouts to Freelancers are converted to the local currency (KES) using the closing Central Bank of Kenya (CBK) exchange rate from the date the Client releases payment. This rate is locked at the time of release, regardless of fluctuations during the processing window.
Opengates does not charge any foreign exchange margin. Freelancers receive the interbank rate provided by Open Exchange Rates (openexchangerates.org).
If payout processing is delayed by more than 2 business days beyond the scheduled payout date due to a platform issue, the Freelancer may request a rate re-lock at the current CBK rate.
Payout Account Security
Freelancers must configure a valid payout account (bank account) on the Platform to receive payments. If a Freelancer does not have a configured payout account at the time of payment release, the funds will be held until a valid payout account is set up.
To protect against fraud:
- Name Matching: The bank account holder name must match the Freelancer's registered name on Opengates.
- Change Verification: Any change to payout account details requires email verification and two-factor authentication (2FA) confirmation.
- Grace Period: New or updated payout accounts are subject to a 7-day holding period before becoming active for disbursements. During this period, the Freelancer will be notified of the change and may cancel it if unauthorized.
- Notifications: Freelancers will receive an immediate email and in-app notification whenever payout account details are changed.
Opengates is not liable for payments sent to incorrect bank details that were verified and confirmed by the Freelancer through the above security process.
Chargebacks
Clients who funded a contract via credit or debit card may initiate a chargeback through their card issuer within the timeframe permitted by Paystack (typically up to 180 days). Freelancers should be aware that chargebacks can be initiated even after payout has been completed.
If a chargeback is upheld:
- The disputed amount will be deducted from the Freelancer's pending balance or future payouts.
- If the Freelancer has no pending balance, Opengates will notify the Freelancer and arrange recovery of the amount.
Frivolous or fraudulent chargeback claims by Clients may result in account suspension.
Refunds
Refunds are issued to Clients under the following circumstances:
- Order Expiry: If a Freelancer does not accept a contract within 72 hours of it being funded, a refund is automatically issued to the Client. Opengates retains a 3% processing fee.
- Mutual Cancellation: If both Client and Freelancer agree to cancel a contract before work begins, a full refund (minus the 3% processing fee) is issued to the Client.
- Partial Completion: If work has partially been completed and both parties agree to cancel, the refund amount will be reduced by the percentage of work completed, as agreed between the parties or determined through Dispute Resolution.
- Dispute Outcome: If a dispute is resolved in the Client's favour, a refund (full or partial) will be issued as determined by the resolution process.
Refund Timeline: Refunds are processed within 3–5 business days and returned to the original payment method. Paystack reversal fees, if any, are absorbed by Opengates.
Tax Obligations
Freelancers and Clients are responsible for understanding and complying with their own tax obligations:
- Freelancer Responsibility: Freelancer earnings on Opengates are taxable income. You are responsible for reporting your income to the Kenya Revenue Authority (KRA) or your local tax authority and paying applicable income taxes.
- Annual Earnings Statement: At the end of each calendar year, Opengates will provide Freelancers with a summary of their annual payouts. This document can be used for tax filing purposes.
- Withholding: Depending on your tax residency and applicable regulations, Opengates or Paystack may be required to withhold income tax from payouts. If withholding applies, you will be notified in advance.
- Tax Advice: Opengates does not provide tax advice. We recommend consulting a qualified tax professional to understand your obligations.
Disputes
If a dispute arises regarding payment, either party may raise a dispute through the Platform. During the dispute resolution process, the funds in question will remain in escrow until a resolution is reached. For full details on how disputes are handled, including timelines and escalation, see our Dispute Resolution policy.
Users may file a maximum of 1 dispute per contract and 5 disputes per calendar month. Frivolous or abusive dispute filing may result in account suspension.
Changes to Payment Terms
Opengates reserves the right to modify the payout schedule, fee structure, or other payment-related terms at any time. Users will be notified of material changes at least 14 days in advance through the Platform or via email. Continued use of the Platform after such changes take effect constitutes acceptance of the updated terms.