Posted by Chuck on April 1, 2019
Manufactured Spending

Published on April 1st, 2019 | by Chuck

32

Melio Business Bill Payment Service with Credit Cards for 2.5% Fee (Plastiq Alternative)

Two readers reached out about a new Plastiq alternative Melio who also allows bill payments with credit cards at the same 2.5% fee.

Melio is a business bill payment service. Most interesting for credit card enthusiasts: they allow paying your bills with a credit card for a fee of 2.5%. That makes them in many ways similar to Plastiq, but there are a few important differences:

  • Melio accentuates businesses only, no mention of being able to pay things like mortgage, rent, or taxes. They state that way in the terms as well. Plastiq, on the other hand, offers both business and personal bill payment service. (From what I’ve heard from a reader, some personal payments may be possible on Melio, and they may be expanding to personal payments in the future as well.)
  • Melio charges no fee at all for debit card payments while Plastiq charges a 1% fee. (Prepaid/gift cards don’t seem to work for this, as per reader reports in the comments.) Melio also offers a fee-free option of paying with your bank account.

Both Melio and Plastiq accept Visa, Mastercard, Discover, and American Express. (Initially, Melio did not accept Amex, but they do now.)

Melio is a new company, it’ll be interesting to see if they gain traction. For the most part, there doesn’t seem to be any price advantage to Melio over Plastiq when paying with a credit card as both have the same 2.5% fee; regardless, it’s nice to have all options on the table. Also worth noting that with Plastiq some Visa consumer cards have a cash advance issue (more details on which cards are affected can be found here). It’s possible that this issue does not occur with Melio so that would make them a good option for racking up Visa spend.

Hat tip to readers David and Andrew



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Hari
Hari

So re-loadable cards considered Debt card and transacted without fee? BB/Serv/Few Visa/master GCs?

raekwon
raekwon

BB/Serve are out because they don’t take Amex yet. Just tried w/ a prepaid Chase Sbux Visa and a virtual debit MC and it didn’t take either. Looks like the answer right now is “no” for prepaid/reloadables.

Kelly Turner
Kelly Turner

Did you try registering the card first?

Meepster17
Meepster17

They said Amex is coming next week on a post via FB. I can confirm GC’s don’t currently work, even after registering them.

Meepster17
Meepster17

GC that I’ve tried all say they can’t be added, even after registering them and waiting a few days.

Steve

Incluso el uno de vainilla no funcionó.

Ryan Goldstein

I just saw this advertised on Facebook yesterday. Potentially interesting, if only to keep Plastiq on its toes!

Debit
Debit

Matter of time before one buys the other and capitalism wins again.

LC
LC

or… this one goes under just like all the other ones that have tried this. plastiq only one to succeed so far.

Brian
Brian

Let’s see some promos!

Debit
Debit

Also I got 10% back at Chevron amex offer.

Dan
Dan

Nice to see a competitor. Maybe now Plastiq will start offering some promotion like they used to.

Victor
Victor

Nice but useless for me unless they can offer personal payment options.

Fish
Fish

Spent made some pretty bad changes today.

3 cash back offers per month now, and you have to manually pick them.

The TOS also states a $15/month limit on earnings from automatic cash back offers.

https://imgur.com/a/aWxzVKd

VictorG
VictorG

Can I pay Taxes using VGC (Visa Gift Card)?

Chaser123
Chaser123

FYI – Staples Visa GC (registered) did not work.

vipul
vipul

I tried this service about a month ago. They require your SSN for “mandatory government verification”. They would also call you and want to talk over phone before your first payment goes through.

doc
doc

Has anyone managed to send a payment to themselves?

Frank
Frank

Even if people have, I’m sure it’ll be killed shortly

doc
doc

Probably right.

J
J

“Welcome to Melio Payments!

Melio’s goal is to allow small businesses to pay their vendors in a seamless way.

I am reaching out from the risk and compliance team about your first payment. It appears that you are using our services as a cash advance to fund your account from your credit card.

As part of our bank regulations, we are not able to process payments of this nature. Please do let us know if we got this wrong! We understand this could also be a test payment, which we can do, but only for $1.

We have blocked your payment for $101 and if we don’t hear if we don’t hear back from you with additional information in the next 48 hours, we will need to cancel the payment.

Thank you for understanding,”

CIP with a $100 CA limit. Didn’t even manage to go through.

Steve

What type of account were you trying to pay?

Frank
Frank

The real question is how does the CIP code — that could make it better then Plastiq

Meepster17
Meepster17

1x.

!
!

Any luck using the paypal business debit on this service? I’m guessing they process as debit and therefore wouldn’t get the 1% cash back?

Nunya
Nunya

I tried. No 1% cb

ell
ell

did ebay cc for backup funding worked for you?

Zooter
Zooter

Has anyone used this to pay a credit card bill?

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