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These Payment & Funds-Holding Terms explain how held deposits and milestone payments are funded, held, released, refunded, and reversed on the JobDeposit Platform. They are part of the Terms of Service and incorporate the Dispute Resolution Policy, AI Photo Verification Disclaimer, and, for Contractors, the Contractor Agreement.
We use the terms "held deposit" and "milestone payments" to describe how our payment workflow operates. Unless and until we expressly state that we (or a named partner) hold an escrow license in your state, JobDeposit is not an escrow agent and the Platform is not "escrow" as that term is defined by state escrow laws. [ATTORNEY: confirm state-by-state agent-of-payee / processor-held funds exemptions and statutory disclosures.]
2.1 Held deposits and milestone payments are processed by [PAYMENT PROCESSOR, e.g., Stripe, Inc. and its affiliated financial institutions] (the "Processor"), a licensed payment provider. JobDeposit does not take possession of, or hold in its own bank accounts, Homeowner held deposit funds. The held deposit is maintained in accordance with the Processor's payment arrangements until each milestone payment is transferred to the Contractor's connected account or refunded to the Homeowner.
2.2 By funding a held deposit or receiving milestone payments you agree to the Processor's terms, which are incorporated here, including the Stripe Services Agreement and, for Contractors, the Stripe Connected Account Agreement. You authorize us to share information with the Processor and to instruct it to hold the deposit, release milestone payments, issue refunds, and reverse transfers as described here.
2.3 Held deposit balances are not FDIC-insured deposits held by JobDeposit and earn no interest for you. [ATTORNEY: confirm pass-through insurance statements, if any.]
3.1 Before work begins, the Homeowner funds the agreed held deposit (or the portion permitted by applicable state law — see Section 9) by credit or debit card or another payment method we offer. You authorize the Processor to charge your payment method for the held deposit.
3.2 The held deposit is allocated across project milestones as shown in the agreed milestone payment schedule. Each milestone displays its scope, tasks, scheduled milestone payment amount, and completion progress.
A milestone payment is released from the held deposit to the Contractor only when all of the following conditions are met: (a) each task in the milestone has photo evidence submitted through the Platform; (b) automated review, including AI photo inspection, has determined that the evidence is consistent with the agreed scope, or a human/senior reviewer has approved it (see the AI Photo Verification Disclaimer); (c) no open dispute, fraud flag, or legal hold applies; and (d) the Contractor's Verified Pro badge and approved business bank account are active and in good standing.
Homeowners do not pre-approve each milestone payment release. By funding the held deposit, the Homeowner authorizes the Processor to release each milestone payment when these conditions are met. Homeowners receive notifications and may file a dispute afterward under the Dispute Resolution Policy.
When a milestone payment is released, transfer to the Contractor's connected account and payout to the Contractor's approved business bank account may be initiated the same day. Payouts are blocked until the Contractor has an approved business bank account on file. Arrival of funds in the bank depends on the Processor, the receiving bank, and the payout schedule; we do not guarantee arrival timing. Instant or expedited payouts may carry fees.
We may instruct the Processor to hold or delay a milestone payment release or payout when: a dispute is filed; AI or human review flags possible altered, reused, duplicate, or off-site photos; there is suspected fraud, chargeback risk, or legal process; required Contractor verification or business bank account approval lapses; or the Processor requires a hold. Holds apply only to the affected milestone payment(s) where practical.
7.1 A Homeowner may dispute a released milestone payment within [30] days of release (see the Dispute Resolution Policy).
7.2 If a dispute is resolved in the Homeowner's favor, or a milestone payment release resulted from fraud, error, or false photo evidence, Contractor authorizes JobDeposit and the Processor to reverse the milestone payment transfer, debit the Contractor's connected account balance, offset future milestone payments, and/or initiate an ACH debit against the Contractor's linked business bank account for the disputed or reversed amount, to the extent permitted by law and the Processor's terms.
7.3 If recovery fails, the Contractor remains liable for the unpaid balance, and we may pursue collection.
8.1 Unreleased held deposit funds for milestones not yet started may be refunded on cancellation by mutual agreement of both parties, under the Project Contract, under a statutory cancellation right (Section 9), or under a determination issued pursuant to the Dispute Resolution Policy.
8.2 Refunds of held deposit funds return to the Homeowner's original payment method. Platform and Processor fees may be non-refundable except where required by law. [ATTORNEY: confirm fee refund rules for statutory cancellations.]
9.1 State deposit limits and cancellation rights. Some states limit how much of a held deposit may be collected before work begins, regulate milestone payment schedules, and grant homeowners a statutory right to cancel (such as a 3-business-day right to cancel). The Platform may cap upfront held-deposit funding or collect milestone payments per stage where required by state law. Nothing in these terms waives any statutory cancellation right. [ATTORNEY: structure of upfront held deposit vs. per-milestone charges by state.]
9.2 Service-area exclusion clause. JobDeposit offers held-deposit and milestone-payment services only in supported United States jurisdictions (SERVICE_STATES) and eligible ZIP codes, and expressly excludes [EXCLUDED STATES / SERVICE AREA EXCLUSION PLACEHOLDER] and any jurisdiction where applicable licensing, home-improvement contract laws, or payment regulations prohibit or restrict the Platform's workflow. Users and properties in excluded jurisdictions may not fund a held deposit or receive milestone payments through the Platform. [ATTORNEY: finalize excluded-state schedule.]
If a Homeowner files a card chargeback against a held deposit or milestone payment, the affected funds are placed on hold pending the outcome. We encourage use of our Dispute Resolution Policy first; chargeback rights under card-network rules and federal law are not waived. Contractors are responsible for chargebacks on released milestone payments to the extent attributable to their work or conduct, and authorize recovery under Section 7. Abusive or fraudulent chargebacks may lead to account termination.
Any held deposit or milestone payment funds that cannot be released or refunded will be handled under applicable state unclaimed-property laws.
Platform fees on held deposits and milestone payments: [FEE SCHEDULE]. Fees are deducted at milestone payment release unless stated otherwise.
The Processor or JobDeposit may issue IRS Form 1099-K or other required tax forms to Contractors for milestone payments processed through the Platform.