If freelance sites allow people to carry out ME deals, then buyers can easily scam service providers.
Let’s assume that GAF allow MEs:
Now a buyer opens a project and describes that he need $1000 in his Paypal account urgently. In return he will pay $1050.
User can earn $50 in just one transaction.
Some service provider [SP] agrees and the buyer awards the project to the agreed SP. The SP transfer the money to buyer’s Paypal account and then send an email to buyer to confirm that he has received the money.
Now, what if the buyer never replies back?
Oh yeah, SP will start a dispute?
Unfortunately, disputes or arbitrations are available only when Escrow is used: where the buyers who are looking to scam SPs, they do not use Escrow.
So the SP who just transferred $1000 to a buyer’s account in hope to earn $50, will just lose $1000.
This is just one example of a scam: there are many other tricks that buyers may use.
I know: MEs are not allowed at freelance sites, but scam buyers still open such projects in order to catch a victim before the project gets closed by support team.
After the site terminates such buyers account, they simply make another account and come back again.
So now you know one very important reason why freelance sites do not allow any kind of money exchanges to be carried out in their freelance market.
