Posted by Chuck on December 17, 2019
Manufactured Spending

Published on December 17th, 2019 | by Chuck

88

Plastiq Will No Longer Accept Prepaid Debit Cards Beginning 2020 (RIP)

Beginning in 2020, Plastiq will no longer allow the use of personal prepaid debit cards on their system. Basically, Visa and Mastercard gift cards will no longer work on their system. RIP

Until January 1, 2020, you can continue to use prepaid cards, up to $7,500 in total payments. You can read full details on the Plastiq site here.

They just sent out an email:

We would like to let you know about a change to our service that may affect you.

As of January 1, 2020, Plastiq will no longer support payments made with personal prepaid debit cards. However, payments made with business prepaid debit cards and payroll cards will continue to be accepted.

After this date, all scheduled payments made with personal prepaid cards will be declined by Plastiq. Starting January 2020, you will be unable to add a personal prepaid debit card to a Plastiq account.

From now until January 1, 2020, a limit of $7,500 in total payments will be enforced on Plastiq accounts that continue to utilize this payment method. Once this limit is reached on your account, further payments using a personal prepaid debit card will be rejected.

This change does not impact any payments made with credit or debit cards on the Discover, Mastercard, Visa, and American Express networks.

It’s not clear to me why they wouldn’t accept the cards, just take your cut with the 2.5% fee. Maybe fraud issues.



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Beefer

Very sad to see this method go. No clue if we’re going to be able to pay student loans with an Amex now.

ChurnBro52
ChurnBro52

My Foodmaxx sells $500 gift cards for Gift of college for only a $6 fee.

i recently used two different AMEX cards to meet the sign up bonus requirement (Cash Magnet, AMEX Everday) by buying only Gift of College gift cards. I even used my blue cash preferred to earn 6% back a few times.

Dinarte
Dinarte

Virginia?

Stammers95
Stammers95

Wow, your playing with fire in regards to AMEX Rat team…I know in years past they will claw back signup bonuses because of GC purchases. In my situation, I have always used my AMEX cards for the actual legit transactions.

Millennial Outrage

Depends on whether they can see the line item detail or not. I hit the Schwab Plat SUB in part from purchasing $3k in Gift of College GCs from Toys ‘R’ Us (RIP).

Tyler
Tyler

So I’m but no means a heavy hitter but with all the Staples and Office Max deals lately I’m about as extended on prepaid cards as I’ve ever been. Looks like I’m going to be prepaying some monthly bills before the end of the year! Luckily I’m below the $7,500 amount.

ABC
ABC

I predict Plastiq’s revenue to be greatly reduced in 2029.

Avi
Avi

That’s an oddly specific prediction.

Abey
Abey

Probably a typo 2020 2029

rick b
rick b

Given the history of such services, I doubt it’ll be around by 2029.

nick
nick

are you the second coming of nostradamus? jk jk jk

Art
Art

I will pay 1,000-1 odds that this will happen in 2154. That’s a hundred grand return if you send me $100 now.

Frugal Nellie, aka Lela
Frugal Nellie, aka Lela

lol You people are great!

qmc
qmc

Almost certainly fraud issues… hmm, now what to do with the next 2 weeks…

calwatch
calwatch

Some of us might have hit it hard during the recent OSS promos? RIP indeed.

Ithacxa
Ithacxa

Prepaid debit cards are distinct from Gift cards which cannot be reloaded. It’s best to distinguish the two.

Plastiq is discontinuing PP debit cards but gift cards were not mentioned in the email above. A google search of PP Debit cards also reveals things like bluebird, etc which aren’t exactly Gift cards.

Maybe there is hope.

calwatch
calwatch

They anticipated this:
https://help.plastiq.com/hc/en-us/articles/360040205593-Personal-Prepaid-Card-Restriction
The following card types qualify as “prepaid cards”:

Gift cards
Retail cards
General-purpose reloadable cards

slowbrake
slowbrake

Their FAQ anticipated it. Lets see how good the programmers are.

sudo
sudo

As a programmer it doesnt take much. Just ban a list of BIN. Simple.

doghound
doghound

deleted

dk
dk

I worked with a crack team of developers once who never anticipated the idea that user might not be in EST time zone. Then 6 months later, that no one would ever be in EST or CT time zone. So those simple ideas, they don’t always make it in to the codebase.

Ithacxa
Ithacxa

Thanks! This wasn’t in the original email, but the clarification helps.

Abey
Abey

There goes office supply stores 5x ink…

Pointz
Pointz

You can’t combine those $200 cards anyway. If your mortgage is $1500 and doesn’t allow partial payment then $200 card is useless. Not sure what you can use them for.

Dave
Dave

It depends. Quicken Loan holds partial payments until the accrued amount surpasses the payment due. Some banks allow you to call in and request a recategorization of the multiple payments already applied to principle.

Pointz
Pointz

Crap. Never thought about calling and doing that. Now that’s gone..

Sevillada
Sevillada

Almost gone

Sa
Sa

Why wouldn’t the bank allow partial payment for a mortgage? I make partial payments all the time and call them to apply them towards regular payment just fine.

Sevillada
Sevillada

If you send them enough to cover the $1500, most will combine them. For me an email is enough (secure message), but others a call is needed

LNK
LNK

You can use it to pay off principle, I have made dozen of $198 payment using prepaid MC this year.
I also believe that you can combine them to a single payment since if my $198 payments arrive near the 1st of the month my bank (Wells Fargo) usually don’t apply it to the principle right the way until I make my schedule mortgage payment .

Plastiq only charge 1% fee for MC prepaid card so if you are buying it using 5% card, you are getting 4%

dety
dety

Check your math. If your buying your MC prepaid card from an office supply store (Office Depot, Staples), using a 5% cash back card, you are going the pay a fee per card. That eats substantially into your profits.

LNK
LNK

My math is correct because I am such a genius and know to load up on MC GC ONLY when there is no fee, It’s true that any less intelligence people who pay a fee per card will get substantially less profit LOL

CardShark
CardShark

I made multiple smaller payments to my mortgage servicer last year. The servicer would hold the funds until it was sufficient to meet a scheduled payment. One issue was that the payments are sent via postal mail, and could be posted at various times, which could result in accidental additional principal payments. But it worked great to liquidate some cards last year.

MaxPower
MaxPower

That’s the end of Plastiq for me.

Sa
Sa

There’s always those 1% promos.

MaxPower
MaxPower

I currently don’t have any cards that will allow payment with my auto loan directly (gets classified as Mortgage & HELOC). So, I used prepaid MCs purchased with 4x-5x rewards back in MRs/URs to bypass this. The 1% promos won’t help with that.

Froide
Froide

And FFD for referrals.

dk
dk

Plastiq has always been a means to an end. The legitimate use cases are so so specific, and the restrictions are many. I mean what payment recipients outside of mortgage, rent, and loan payments don’t accept CC at no mark up?

veeRob

I don’t get it… 2.5% is a very high price to liquidate a prepaid card in my book. Don’t see how this is a huge loss

Clover Chan
Clover Chan

Mastercard was only 1%

Pointz
Pointz

Made a payment with MC last week. It was 2.5%, not sure why you say 1%

Clover Chan
Clover Chan

See Dave’s comment

86
86

MC Metabank debit gift cards were 1% when I paid a bill last month.

LNK
LNK

The prepaid MC card which purchase from Staples is always 1% , don’t know how people not know that….
My guess is Plastiq consider prepaid MC as debit card

86
86

Or they had some arrangement with MC, etc., like they did in the summer that allowed Plastiq to charge no fee if for a limited time.

Dave
Dave

Plastiq only charges 1% on prepaid MC.

qmc
qmc

At high volume sure, but at lower volume, 5% – 1-2.5% = 2.5-4% and you might not even have to lift your butt off the seat.

vc
vc

aren’t all debit cards 1%?

Pointz
Pointz

What the heck is business prepaid debit card? Aren’t all of the prepaid personal?

Jonathan
Jonathan

Only they can say, but maybe things like rebate cards ¯\\_(ツ)_/¯

Steve

Maybe the Sakura card that recently had a bonus (but I think it can only be loaded from a bank account and doesn’t seem useful).

K-Man
K-Man

Well bugger. I’ve already got scheduled payments with debit cards into 2020. I guess I’ll have to bump those up.

Sevillada
Sevillada

Crap crap crap crap 🙁

Ferris
Ferris

Writing was on the wall from all those staples/OD deals and a certain Amex offer.

Jeff
Jeff

1%-2.5% is an expensive way to drain GC’s, there are much cheaper methods out there. Not a big deal at all.

calwatch
calwatch

For $100 or $200 ones, especially at the 1% rate, there was no easier way,. Sure you could split payment at Walmart but that is a pain, and you have to find the ones that let you do it, which is tough in urban areas.

86
86

IIRC, I tried using a new Metabank VGC not long ago that Plastiq wouldn’t accept for payment at all, so this has already happened in some cases. Also, they stated in their previous FAQ (before today’s revision) that they wouldn’t take many VGCs.

calwatch
calwatch

The VGCs have not been good with Plastiq for a while.

EyesOnThePoints

calwatch was curious.. How would u unload the $100 or $200 or whatever amount mastercard prepaid (gift cards) if u can’t pay person to person payments with Plastiq and u can’t do split payments with Plastiq? Thanks… My Plastiq payments are usually $1000+ (mortgage, car, etc) and a $200 won’t work cuz it’s not enough 🙁

Dan
Dan

Partial payments, prepaying utilities, car loans, etc. I would take liquidating at 1% on plastiq vs. going to Walmart any day. Going to WM, that is an ordeal and a huge time suck that a lot of people don’t account for. If the line is long, the money order machine is down, employees that feel they are avengers and want to prevent GC use. Nothing better then sitting at home and just liquidating.

Captain Planet
Captain Planet

Love the Avenger reference.

Who is Thor’s favorite singer?
MC Hammer

When did Anakin Skywalker become evil? In the sith grade!

James Bond

Definitely getting more difficult and complicated at more and more WMs. Some WM CSRs now ask for my ID for trans under $1k which is a no-go for me (I am now blocked from trans in WM, probably due to high volume). Some of the avengers at WM have now become legal experts and say that purchasing MOs is considered money laundering. Other WMs only allow VGCs with name on the debit card.

calwatch
calwatch

My bank takes partial payments and I always used it on mortgage, and later HELOC.

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