I experienced something really bad with Fiverr. Here is my story.
I'm a freelance web developer / web designer and I work on Fiverr since 4 months where I provide my services to some customers. I'm actually level 2 and I had several big orders (more than $1000 of gigs) for complete websites.
Several months ago, one of my customers asked me to make a complete website for him. He provided me some mockups and all the specs he wanted me to develop for him. He gave me a lot of details and I accepted the work. Since it was my biggest order on Fiverr ($1500), I accepted to make a really complete website (which costs, in fact, more than $1500) with a lot of revisions for him. There were different stages for the development of this website, and I initially accepted to make the first one (for $1500). I succeeded to make this and he (my buyer) was really happy of my work and he let me a lof of positive feedbacks on one of my gigs. When it was the time to pass to the stage 2, he made me a "good" offer of $2000. But I didn't accept it, since he asked me to make a complete payment system (a little like Paypal, of course, much more simple than it) but it was not something I could really do since I had not a lot of knowledge with payment systems. I was not really happy of my choice but he thanked me for the work I did and he told me that he finally found someone else to do the work. To forgive (even if I didn't have to do), I proposed him to host the website I developed for him on my own dedicated server... I also created some FTP and database accesses for him (for this point, I asked the permission to the Fiverr Customer Support, since it's a little "out of Fiverr", and they accepted to let me do it). Until yesterday, he was still developing his website on my server and his domain name is still linked to my server. But here is why I stopped its accesses.
Two days ago, I received a lot of messages from Fiverr, these messages said this :
We have been informed by PayPal that a dispute was opened for your order #XXXXXXXXX: TITLE OF THE GIG. As a result we are forced to cancel this order and ask that you discontinue your work."
For several orders of $40 each... AND, Fiverr removed the amount of all of this from my balance : for the moment, it's $300. But I guess that the buyer will remove the rest.
I had nothing to say. The work was done, the buyer has the sources and my work but my money is gone. Here is how Fiverr is NOT a safe place for sellers.
On my Paypal account, I had nothing, but they also opened a dispute, and I am now with -108$ and my account seems to be restricted. I can't remove my bank account or my cart from Paypal until I refund Fiverr. It's really, really frustrated, because I have made the work, and my money is not here anymore, and moreover, it was for a work I made 3 months ago, were the buyer let me some positive feedbacks. Today, a part of his orders have the status "cancel" and he has been entirely refunded for these orders. I'm really angry and I don't know what to do .
Fiverr told me that the bank of the buyer has block his cart, maybe because he paid with a stolen one. But in this story, I am the victim.
I want to point out the fact that I have always respected the Fiverr TOS.
If you have some suggestions... I will hear you.
EDIT : Almost one year later, here is my answer with some good news about the situation.