Posted by Chuck on May 26, 2015
Manufactured Spending

Published on May 26th, 2015 | by Chuck

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Plastiq: New Option for Paying Rent, Mortgage, Tuition & More with a Credit Card

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

plastiq list 2

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.



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Greg Z
Greg Z

Do they take gift cards? Amex gift cards?

J. Grant
J. Grant

If you do try it out, I’d personally appreciate the data point. I don’t have any AMEX gift cards lying around, but if they’re accepted, that could all change 🙂

Fiby

How about cash advance fees? Will it code as one?

Tyler O
Tyler O

Do you think this could work when making a student loan payment? Or could that code as a cash advance?

Miz
Miz

Do they take Amex Gift Cards?

PA
PA

It seems like you can add a payee very similarly to BB/RB (i.e. anyone with an address/bank account), is this true? Are there limits for how much you can send in a given amount of time? If not, this could be a lucrative MS opportunity for those with the 3x everywhere Citi Preferred retention offer…

Paul
Paul

This could be worthwhile if they end up accepting JCB.

f
f

What’s evolve?

Paul
Paul

Would be interesting to find out if they send out 1099’s as well…. you should do a little media reachout!

William Charles

Will do.

Dave
Dave

My Citi TY Pref is getting 3x everywhere right now. Any reason I can’t just send my wife $10k, pay $250 and collect 30k TYP?

lcqq
lcqq

confirmed. good for amex gift card. seems no limit, >3000

J. Grant
J. Grant

Thanks for the data point.

Usually, if there are no answers to multiple question asking the same thing – in this case about using AMEX gift cards, one can assume that the info is “hush hush” and people don’t want to share because it’s a decent MS opportunity.

anders
anders

i got rejected with six different valid registered with my name and address amex us diollar gift cards.

did you have to go through any hoops to get it to work/

wondering if my probelm was that i tried to pay a canadian tax in canadian dollars.

i dont have anyone that i need to pay in the states — could i really pay a friend? i just called plastiq and they said not people, businesses only — is there a way around it? i have been sitting on over 2500 amex us gift cards used to meet a minimum spend for five years now. really would like to turn them into money. happy to pay five percent, even ten percent as i never go to the states. i did not like that loanshark pretending to be a charity — that is the onl other option that i can think of.

ABC
ABC

What country are you in?

Bluebell
Bluebell

Can’t you add it to paypal?

MrWho
MrWho

Conflicting info for the #1:

“andrewjeremy says:
May 26, 2015 at 7:25 pm

Finally something i know.

1. you can not pay anyone — you can pay businesses but you can not pay an individual such as your friend. I just called in and verified.

2. Bank of america will charge a cash equivalence fee — 10 dollars on the payee, an additional 10 on the service fee. I do not know if they also charge interest or give points.

3. i believe it is a us company with offices in boston and the bay area, operating in canada for a couple of years already.

4. they started with excellent service, now service merely good. It takes a minute or two to enter the payment, a couple of seconds to process, two or three days for the money to be received.

5. hard to see miles or other rewards that are worth more than 2.5 per cent and the hassle. but as long as you do not get stuck with a cash advance fee or cash equivalency it may help with minimum spends. does not work with td bank in canada (mostly visa but one mastercard) nor royal bank in canada. it can be a ymmv type thing — no charges, then no acceptance at all, then acceptance again but with fees and no points crediting.”

http://viewfromthewing.boardingarea.com/2015/05/26/pay-anyone-you-wish-via-credit-card-and-earn-points-for-less-than-paypal-charges-without-paypals-annoyances/#comments

MrWho
MrWho

I guess anders verified it as well.

anthonyjh21
anthonyjh21

Any idea if payments can be split? I want to use an AGC but our mortgage is in excess of the $2k AGC denomination.

Bryan
Bryan

Just made a small test payment to SO, and entered bank account # and routing #. Processed payment just fine, but noticed a section afterwards that said something like “Your payee does not accept funds electronically, so a check will be mailed to the address provided.”

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