Posted by William Charles on December 12, 2019
Deals

Published on December 12th, 2019 | by William Charles

49

[YMMV] Plastiq Charging 1.25%/1.5% Fee

Update 12/12/19: Some are now seeing a 1.5% fee with no e-mail.

The Offer

  • Plastiq is charging some users a fee of 1.25% on payments sent until the end of the year

Our Verdict

No e-mails were sent out, but you’ll see the fee you need to pay before making the payment. See our full review of Plastiq here. New Plastiq members can signup with a referral link and get a bonus – details here. 



49
Leave a Reply

avatar
 

  Subscribe  
newest oldest most voted
Notify of
YoniPDX

This is a little concerning – it seems like Plastiq is running these sales/discounts on a monthly basis.

It would be sad to lose another easy way to meet extra monthly spend. Not saying they are, just concerning to see it so regular.

Sevillada
Sevillada

Everyone runs promos, no need to panic or spread fear

Trimal
Trimal

it’s might be they are working on selling themselves to one of those big boys or IPO(less likely).

value
value

I will not miss it at all if it disappears. I cannot find any case I would use it because of its high (regular) fee. I don’t know. Maybe it is useful for those who need meet 10s of thousands, .

Frugal Nellie, aka Lela
Frugal Nellie, aka Lela

Super useful to automate bank accounts that need 10 monthly debit card transactions, often ones that earn high interest rates. Book 10 $1 payments to your electric company, and set them to repeat monthly for 3 years. Project done! Your fee is like a penny each transaction. Esp if you don’t dig Amazon reloads.

Kyle
Kyle

I don’t MS, so I use it to meet minimum spend for each new card that I get by simply paying my mortgage and sometimes my dad’s as well. If the new card is already a MC, great (grAAvy train). If it’s Visa or Amex, I go buy a OneVanilla MC $500 and then Plastiq only charges 1% on those cards. Overall, it’s just very easy to get the min spend completed and not worry about things by using Plastiq for mortgages.

Brian
Brian

Me or P2 have never been targeted for a promo. Even if it were free flowing, I’d probably still not be too concerned.

Jason
Jason

I don’t understand their business at all. Is their net income really just the difference in credit card fees they are charged and they charge their own customers?

That delta must be really small. Then factor in fraud and it must be near zero.

It’s a venture capital backed business, so investors must be banking on some billion dollar exit either through a sale or IPO. I don’t get what a buyer would get and can’t imagine what a public markets valuation would be here.

Dubs
Dubs

They also earn income from the interest on money between charging your card and the check being cashed. It’s not much though, probably ~0.1% per transaction depending on average turnaround time.

AllwaysLearning22
AllwaysLearning22

I could be wrong of course, but it seems like a pretty sweet business to me, The delta is small (not in all cases), but if you are processing millions of dollars per day, it does add up.

IMO it is all about the risk of fraudulent transactions. If they have this under control, it is a money making business.

I don’t know if they are venture backed or not, but I know others have tried and failed at this same business, so they must be doing something right.

And, as for me, I enjoy being able to pay my mortgage with a CC and getting float and CB for it. In most cases I take advantage of promotions, so I come out ahead and when I have a 0% APR CC it is additional ‘gravy’

binaryinfo
binaryinfo

Not targeted…

Sevillada
Sevillada

No go for P1 or P2 🙁 🙁 🙁

Mort & Ricky
Mort & Ricky

That’s a nope for me too, dawg.

SA
SA

Same here.

cyno
cyno

what is P1 and P2. appreciate if someone help me understand this

Chuck

shorthand for person 1 and person 2. In other words, the accounts of someone else (e.g. a spouse) who you control.

Ven
Ven

thanks for the clarification

Sevillada
Sevillada

P1 is self, p2 usually your significant other

Ven
Ven

thanks

veeRob

Got pretty excited but alas my account still charges 2.5%. 🙁

Pointz
Pointz

Try with Discover and then Mastercard. It might work with them

Ben
Ben

William Charles this may be dead now. I was targeted for the 1.25% fee and it showed yesterday when testing a payment. Today it’s back up to 2.5% accros all of my cards.

Matt

Yeah, I experienced the same thing. It was working on any card yesterday (no email however) and today it’s 2.5%.

Mike
Mike

I just submitted a payment with a 1% fee
EDIT: This was with a Mastercard. Made another payment with VISA and it had the 2.5% fee on it. Used my FFD balance instead.

Chris
Chris

Plastiq has been running promos tied to holidays…maybe this was a mistake for something being announced later this month.

Sevillada
Sevillada

Just got a promo email….for 1 FFD for every $10 🙁
Same crappy promo as before

Youngestofallthebuck
Youngestofallthebuck

Same lol so worthless

HarryTheFirstHarry
HarryTheFirstHarry

For those like me who need to be “spoon-fed”, as a poster said in the past, here is my spoon feed only for the eyes of those who need it:
Doing the math on a $1K payment with a 2% card…Pay $25 in fee and get back $20 from CC and 100 FFD from Plastiq for first transaction. For subsequent transaction, make a payment of $100 paying 0 fee and earn $2 from CC.
So net loss of $3 per $1000 when using 2%cc or 0.3% loss if using this offer. Those with higher earning cards adjust accordingly and may result in profit or may make make sense even with the loss for those who need to meet min spend.

Dubs
Dubs

small error in your math: the fee is applied first and then your credit card reward is applied. So $25 is charged that you earn 50¢ on. Net loss $2.50.
Also note this means you get a tiny win when the fee matches your credit card reward i.e. on $10,000 with 2% fee/reward you earn net $4.

Dubs
Dubs

Also note that putting the payment on credit lets you earn interest. If you made a payment near the beginning of your statement period you’d have nearly two months to earn interest on that money before its deducted. At 2% a year with a $10k payment that comes to about $33 after 2 months.

Curmudgeon
Curmudgeon

Don’t think it’s dead. I just got an email offering a 1% fee for up to three payments of $20,000 each. Valid until end of the year.

james
james

I didn’t see the email, but I just processed a Chase IHG Mastercard (the only MC in the chase travel portfolio, not sure why) mortgage payment to meet min. spend and it came in at 1% also!

Yu
Yu

anyone used BOA premium rewards card to pay federal tax and still got the cash back points recently?

AllwaysLearning22
AllwaysLearning22

I have paid other bills with the Travel Rewards (not the Premiums rewards). That one always tracks at 1.5% for all purchases, but with the 75% relationship bonus comes to 2.65% overall, so no problem there.

I also paid mortgage with Chase with the Cash Rewards MC and for whatever reason this tracks as the online purchase category and ears 5.25% (on the first 2.5K for the quarter). Other bill payments with Plastiq do not get the ‘online purchase’ – go figure

Yu
Yu

Thanks. Did you use it to pay Federal Tax before. I am a little concerned if will get processed correctly. Also what does the plastiq charge look like on your credit card statement?

sevillada
sevillada

nothing for P1/P2 🙁

Mejbaol Alam Sajib
Mejbaol Alam Sajib

I got 1.5% email.

David Vasquez
David Vasquez

I got an email today. 1.5% fee on up to 3 payments up to $10k each before 12/22/19. Subject line: “This season we’re gifting you lower fees“

Millennial Outrage

Samesies

vc
vc

me, too. not worth it now. would have been useful before i met my spend. using discover debit for a 1% fee now.

dogbert
dogbert

Are there any consumer protections should Plastiq go belly up/bankrupt before your payment is processed. I got the email for 1% fee and it’s tempting to put some stuff on my Chase ink cash for 1.5% UR but I am unclear of the risks of setting up three 20k payments . Maximum cash return for me is. $300 if I put up 60k in credit card charges but I just fear what might happen if the company had financial trouble before my accounts were settled. Does anybody know if this is a legitimate concern?

Dubs
Dubs

Just charge it back on your credit card. All the consumer protections that apply to credit cards should apply

AllwaysLearning22
AllwaysLearning22

I agree. I think there is little chance of this being a problem. If Plastiq were to go bankrupt, you will eventually get your money back. It might be a hassle and it might take a while, but you will

aubergine
aubergine

Got a 1.5% offer today for 3x payments up to 10K.

I’m wondering if I should go open up a new card…..

Back to Top ↑