Payment Processing
Opengates facilitates payments between Clients and Freelancers through a secure escrow system powered by Flutterwave, a licensed third-party payment processor. By using the Platform, you also agree to Flutterwave's Terms of Service and Privacy Policy.
Clients add money to an Opengates wallet, which is held in US Dollars (USD), and then use that wallet balance to fund contracts and orders. When a Client funds a contract, the amount is moved from the Client's available wallet balance into escrow, where it is held until the contracted work is delivered, reviewed, and approved.
Escrow funds are held separately from Opengates' operating funds and are accounted for separately at all times. Opengates does not commingle escrow or Client wallet balances with its own capital, and does not use them to meet its own obligations.
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.
Payment Verification: Before each scheduled payout, Opengates verifies that the corresponding Client funds have settled with our payment processor. This check is carried out ahead of the scheduled payout day and does not normally delay it. If a payment cannot be verified in time, or is subject to a fraud or dispute review, that payout is held and the affected Freelancer is notified with the reason. Held payouts are released on the next scheduled payout day once the review is resolved.
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 Flutterwave 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 when funding a contract or order; no additional platform fee is applied beyond the agreed contract amount.
Currency and Conversion
All contract amounts, wallet balances, and Freelancer earnings are denominated in USD.
Adding money to your wallet: When a Client adds money in a local currency, Opengates shows the exact USD amount that will be credited, the exchange rate used, and any processing fee, before the payment is confirmed. The rate is Flutterwave's exchange rate for that currency, plus a currency conversion margin which is disclosed on the same screen. Opengates does not apply any undisclosed margin or markup. Quoted rates are valid for a short period shown at the time of the quote.
Receiving payouts: Payouts are disbursed in USD. Where a Freelancer's receiving account is held in another currency, the conversion to that currency is performed by Flutterwave or by the receiving bank, at the rate applied by that institution at the time the transfer is processed. Opengates does not set, control, or add a margin to that rate.
Because the payout conversion is performed by the receiving institution, the local-currency amount received may differ from an estimate shown earlier in the Platform. Any estimate displayed before disbursement is indicative only.
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 their wallet via credit or debit card may initiate a chargeback through their card issuer within the timeframe permitted by their issuer and by Flutterwave (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:
Wallet-funded task and order cancellations: Eligible funds still held for a cancelled task or order are returned to the Client's wallet under the applicable work and contract settlement. Before Freelancer acceptance, a wallet-funded service order returns its full order total. Returning funds to the wallet does not incur a second top-up processing charge or an arbitrary 3% cancellation deduction. If work has started, the eligible refund is determined by the work completed and the applicable contract or dispute outcome.
- Order Expiry: If a Freelancer does not accept a wallet-funded order within 72 hours of it being funded, the full order total is automatically returned to the Client's Opengates wallet. No additional cancellation or order-processing fee is deducted.
- Cancellation Before Freelancer Acceptance: If a wallet-funded order is cancelled or declined before the Freelancer accepts it, the full order total is returned to the Client's Opengates wallet. No additional cancellation or order-processing fee is deducted. Termination after acceptance follows the contract terms and refund outcome that apply to that contract.
- 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.
Where refunds go: Refunds are returned to the Client's Opengates wallet balance, where they are immediately available to fund other work. Order cancellation does not deduct a second processing fee from that wallet credit. A later request to return eligible, unused wallet funds to the original payment method is based on the amount credited to the wallet, not the amount collected at top-up. For example, if $101.42 is collected and $100 is credited, the original $1.42 provider fee is excluded; if the full $100 remains unused and meets the existing refund eligibility rules, $100 is the refundable wallet principal. Any applicable additional provider or bank/mobile-money transfer costs will be disclosed before the Client approves the external refund route. No arbitrary cancellation or refund surcharge is added. Chargebacks are handled separately under the Chargebacks section above. These terms do not limit any rights or refunds required by applicable law.
Refund Timeline: Refunds to the wallet balance are applied immediately once the cancellation or dispute outcome is final. Refunds to an original payment method are initiated within 3–5 business days of approval; the time to appear on your statement depends on your bank or card issuer. Any applicable additional provider or transfer costs will be disclosed before the Client approves the external refund route.
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 Flutterwave 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.