See our updated Plastiq review here.
We’ve written before about numerous services which will allow you to pay your rent via credit or debit card, usually with a fee. You can see the Complete List Of Options For Paying Your Rent With A Debit Or Credit Card for all the options.
Enter: Plastiq
A new player has entered the field called Plastiq which allows us to pay many bills with a credit card for a 2.5% processing fee. The company will mail out a check for the desired amount and charge your credit card that amount + 2.5% processing fee. There’s also an option to have the funds transferred electronically for some payees.
The 2.5% rate is their standard rate. There are often promotions which will lower that fee. They accept Visa, Mastercard, Amex, and Discover.
Here’s a list of some of the things which can be paid with Plastiq:
- Rent
- Mortgage
- Taxes
- Tuition
- Utilities
- Loans
- Other services
Notes
- There isn’t usually a cash advance problem; more details here.
- From chatting with a rep there (yup, they have chat) it emerged that they began processing USA payments on full scale at the beginning of 2015.
- CSR tells me that if you have the routing number and account number of the payee, then they’ll be able to send the payment electronically to the payee.
- CSR tells me there’s no verification of the payee, they’ll just mail out the check to the payee. So you don’t have to worry about having your landlord (for example) contacted by an outside company and having no idea what they’re talking about.
- Plastiq has a scheduling option so you can schedule out all your payments for the future.
- Plastiq has some partners and those may have a slightly lower processing fee of 1.99%.
Plastiq also has a referral program which offers $400 in fee-free payments per referral and $200 for the new member. Details here.
Final Thoughts
Plastiq seems far and away the best option available currently for using credit card, since:
- the fee of 2.5% is the best available
- the broad ability to pay so many things in one spot
Most other similar services have fees closer to 3%. Also, they only work for certain things, like for rent, while Plastiq works for everything. Keep in mind, though, that for federal tax payments there are other options which are slightly cheaper.
Of course, we don’t typically like paying a 2.5% processing fee, but if someone has a minimum spend threshold to meet this can be a great way of doing so.
I have a question: would it be sound to use PLASTIQ in a strategy to pay less interest on student loans by taking advantage of a 0% interest on purchases + miles bonus? I’ll give an example:
-I apply for a new card (Card X) that provides 2x (double points) for the first $50,000 I spent on my first year of card membership
-That same card offers 0% interest on purchases for 12 months
I have student loans ranging from 4.5% to 6.8% interest rate. I pay a lump sum of what I would pay annually for those loans by using this CARD x via PLASTIQ. By doing this (paying in advance with card X), I’m actually saving between 2% and 4.3% in interest that year, as it compounds / capitalizes daily ( I believe). This, of course, takes into consideration the 2.5% fee
Next? I keep making the monthly payments I would otherwise make toward those loans to the new balance of this new CARD X – all while earning points for payments ( no marked as purchases) that otherwise wouldn’t earned me anything!
Am I flawed in my analysis? Please advise. I’m currently considering tto combine PLASTIQ and the AMEX Blue for Business to pay for student loans.
The current promo for that card: 10x points for dining at US restaurants for the first $2,000; bonus of 10,000 points after your first purchase (no minimum); 2x points on all purchases up to $50,000 for your first year; plus 30% bonus on all points earned from purchases that year. After the first promotional year, you will then get one point per dollar – but retain the 30% bonus every year you are a card member.. Oh – and no annual fee.
Please let me know this is a good idea, thank you!
-Maria Alexandra
Without getting into all the details, the main issue is your credit score. By holding revolving debt, your score will go down.
FQF once wrote a similar scheme to yours http://freequentflyerbook.com/blog/2014/8/30/the-best-way-to-use-the-newest-2-cash-back-card
Ah, but it’s a business card, which makes it even better!
But yes, high utilization is the worry with personal cards. Not a huge problem if you have enough cards and CL, but certainly doesn’t help if you’re trying to churn & burn.
and yes, I am thrilled that is a business card, which means it doesn’t count toward my 5/24 rate, which is why I’m even considering it in the first place!
I understand where you’re coming from, but my credit score is very high and as soon as I see another credit card offer that’s amazing, I’ll just pay off the remaining balance with my savings to lower my utilization rate and then be able to apply for the new card within a month (when my credit score updates again, hopefully).
That being said, do you think it is a sound strategy?
thanks for your responses guys – gee, you’re quick!
-Maria Alexandra
You won’t even need to do that; since it is a business card, it will not report to your personal report or affect your personal utilization 🙂
also: ZERO annual fee!!!!!!!
Used above Link. Here is mine:
https://try.plastiq.com/508278
Also fee for mastercard payment is only 2%.
My rent payment was received in 8 days (including the weekend). I would definitely recommend sending the payment with plenty of time before deadlines to avoid late payments. otherwise so far so good 🙂
I would appreciate it if any new applicants would use my referral link (you’d get $200 fee-free dollars):
https://try.plastiq.com/473671
Thank you very much 🙂
Here is my referral link:
https://try.plastiq.com/474470
You will get 200 dollar free of fees (2.5%). Not much but better than nothing!
Be careful! I have been following up with Plastiq for 60 days without success as a payment has not been delivered to the third party service provider. Successful dealings with Plastiq customer service is virtually impossible due to the fact that one receives error messages when trying to submit a support ticket or initiate a customer chat. Further there is only a recorded message when one calls in person. It’s been an extremely frustrating and disappointing situation which is still awaiting resolution.
has Plastiq gotten any better at not sucking, or are they still bad at not sucking 🙂 [How’s that for double negatives?]
Want to pay utilities, mortgages, rent, loans etc and earn credit card rewards?
Sign up under my link below and you will get $200 of FFD.
https://try.plastiq.com/398992
For every person who registers with Plastiq via your referral link and makes a payment of at least $20, you’ll get 400 Fee Free Dollars and that person will get 200 Fee Free Dollars as well.
https://try.plastiq.com/398992
I have had a horrible experience with Plastiq. Over half of the payments I have wanted to make have been canceled, which caused me problems, and on two of them they took the fee out and refused to refund it. The explanation they have given has been arbitrary and their customer service horrible. They say that they refunded me the two that they didn’t refund. I offered to send them my complete transaction history on the card, and then they said nothing. They seem to not be very organized. I wish I could recommend them, but about all I can recommend at this point is “stay away.” I filed a complaint against them with the BBB today.
Will be trying my new Citi AA in a week to charge thru Plastiq.
Any data point on whether AGC need to be registered to work with this service?