Posted by Chuck on May 31, 2018
Manufactured Spending

Published on May 31st, 2018 | by Chuck

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[Rumor] Plastiq to Stop Allowing Personal Visa Cards Entirely Starting Soon

Update: This has now been somewhat confirmed, more information here.

Just a quick rumor/headsup: According to an anonymous source, Plastiq will entirely stop allowing Visa personal credit cards to be used on their system. This will only affect Visa personal cards, business cards will continue as before. My guess is that Visa gift cards and personal debit cards will be affected by the change as well – it’ll all depend on the BIN and likely won’t discriminate.

Visa had wanted to have everything go through as a cash advance which obviously Plastiq could not allow causing them to decide to drop Visa completely.

According to the source, it might change as early as tomorrow. More likely, in my opinion, is that Plastiq would give us some notice before making the change (unless they are barred from doing so for some reason).

We reached out to Plastiq for comment and haven’t heard back yet. Hopefully this rumor won’t materialize, but my guess is it will. Worth a headsup for anyone who is relying on Plastiq for a spend requirement to make that payment sooner rather than later.

As a reminder, Mastercard and Discover can be used for all payees. Visa can be used for everything besides mortgages. Amex can only be used for Government, Utilities, Education, Residential Rent, and Club Fees and Memberships.

If you’re new to Plastiq, here is my Plastiq referral link or you can find a referral on our dedicated Plastiq Referral Thread.



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JF
JF

Plastiq is becoming less and less useful. I tried to make several $500 payments to a local business for their MasterPass promotion, and they declined all the transactions because I wouldn’t provide a detailed invoice.

I would bet a huge percentage of their customers willing to eat the 2.5% fee are churners chasing rewards points, and as they get tighter and tighter on which card can be used for what expenses people will find other ways.

Wong
Wong

Actually, based, on Eliot’s AMA on reddit, churners are less than 25% (non-business) of their volume. The rest are small businesses making $100k+ payments per month.

JoeH
JoeH

This fits how we operate with it. $25-$50K payments monthly for government tax purposes. I’m actually surprised that churners aren’t even lower.

DS
DS

Bad news for anyone using Plastiq for the CSR. This game just gets harder and harder each year.

AWLL
AWLL

I thought that as of late only CIP coded 3x? If that’s the case, why use CSR?

DS
DS

To qualify for the initial spend?

Mickeymouse
Mickeymouse

Wait so CIP codes as 3x right now?????

D
D

Not just right now, since forever.

Mickeymouse
Mickeymouse

Wow, I really need to get on that I’ve have the CIP for almost a year now 🙁

Gareth
Gareth

The 2.5% fee is quite high so unless it’s completely necessary, I wasn’t using it anyways. It still sucks just because this is still one option, though the last resort.

Jerry

Does plastiq allow CIP to pay mortgage? I know personal visa are not allowed, how about business visa?

Dan
Dan

Curious why all the card issuers vary so much with their Plastiq terms. They’re all still making money no matter what it’s for (rent/mortgage payments, taxes, utilities, or even just everyday spending) Just don’t see why they would turn down free money unless it’s a negotiating tactic to try to squeeze Plastiq.

Ferris
Ferris

Yesterday, I was denied putting a $20 Visa GC through on a payee I had always been able to get through. It seems my payee was added to the list of ones I’m not allowed to pay with a Visa card (was using a work around since last summer). I changed my payee and it worked. They have obviously been updating their systems to comply with Visa. I guess something like Plastiq can only get so big before issuers notice and crimp us out of the equation.

Frito Pendejo
Frito Pendejo

Plastiq’s end is near.

Mike
Mike

Absolutely agree. Their business just hasn’t been able to figure it out to create a consistent ability for customers to use their credit with little hassle. Every time we turn around there is a new blockage or shut down or error with them. I want the points as much as anybody but it is just a pain in the a$$ to use them.

Jerry

Plastiq team always mention they have lots of business payments (or maybe even majority?). I am very curious what drives people to pay 2.5% to business, without category bonus? Let’s exclude people like us who can find ways to make profit from plastiq, since it’s not sustainable for plastiq.
– People just don’t care about 2.5% fee, and have issue paying through ACH? (E.g. need to carry balance?)
– Business reasons that has to pay through card?

TheTaxman_cometh
TheTaxman_cometh

It extends the due date and businesses can deduct the fees.

Wong
Wong

Good businesses can generate more money beyond the 2.5% fee on their floating cash balance when they pay with a card. They may get a discount from their suppliers for paying early as well. Most importantly, they can write off the fees on their tax return. If they are using a 1% card, the cost is easily negligible.

David
David

Hopefully, they’ll grandfather in already scheduled payments, if they do make this change

Emporio
Emporio

It’s worth noting that at this time last year Plastiq made a surprise announcement that they no longer would process mortgage payments with a Visa card effective immediately. However, any scheduled payments which had been entered prior to that announcement would still be processed so long as those payments were not modified. Currently I have Visa payments scheduled out several years through the respective expiration dates on several Visa debit cards (to meet various bank account monthly debit transaction goals) so hopefully those payments will be processed.

Bry
Bry

Can you expand on the debit transactions? Is it to reach many low debit transactions on 1 card or larger amounts on debit for checking rewards?

Jack
Jack

Some guy at Plastiq emailed today to ask if I was interested in their “Private Client Program” for businesses, so I asked him about this. He said they hope it will be “very temporary.”

As an aside, is anyone doing this Private Client thing?

Justin
Justin

Got an email today. Did you find out anything more?

Chaser123
Chaser123

I wasn’t available to liquidate a visa gift card today. Never been an issue before.

MarcoPolo
MarcoPolo

Looks like “t” is missing from “It”

dave
dave

I liquidated 3 visa staples rebate debit cards just now, no issues.

escot
escot

In the category of more rumors, (VERY unlikely to be true), I had a Martin’s Foods manager knowingly declare to me on Monday that Martin’s no longer accepted credit card payments for gift cards…. Had never seen her before, so I guessed she was a Memorial Day fill-in…. and I politely insisted that she process my amex payment as “credit” (not debit…)… Cashier looked on, with a quick eyes roll, like her manager might not have seen the old memo that Martin’s (like Stop ‘n Shop, & Giant) now does accept cc payments for gift cards…. It worked, of course, yet I wondered if maybe, just maybe, she’d seen a memo to come?

Justin O'Shea
Justin O'Shea

That would suck. We’ve been using the Alliant Visa

elegua
elegua

Same here, i’ve been using Alliant visa for bill payments overseas, devastating news for me, really a sad day for me.

DSP
DSP

This was a great idea and a much-needed service. How great it was to plug all my bills into Plastiq and have them pay them charging to my AMEX. I would just pay off AMEX at the end of the month and also accumulate tons of points. The fee was worth the savings in time and peace of mind in having my bills paid on time and not having to wonder if I missed something each month. The points would accumulate to a level where I could pay for spring break trips for my kids. However, after about a year of using Plastiq, I began to notice that service was going down…payments were being late and trying to get them to honor their promise to cover late fees was too much time and effort. Then the stopped allowing AMEX to be used for various charges. This company, in my opinion, is headed for closure…I can’t see it being of value as for it to grow and be valuable it is either all or nothing when it comes to customer service, character, and allowing a customer to pay all their bills with all major credit cards. Cherry picking what cards will pay what and what bills can be paid isn’t attractive or worth the fee. I think this company is headed for bankruptcy. However, it is a good idea if someone could do it right.

Ripley62
Ripley62

The CIP gives 3X with Plastiq. Does the Ink Cash also?

Jason
Jason

They started to charge CA on Oct, 2016. I used a VISA prepaid card and that was declined. So it’s now dead again for VISA. Keep up the good business, Plastiq!

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