Plastiq is a first-of-its-kind online payment service that enables its members to use the credit & debit cards already in their wallets to make any payment, regardless of recipient acceptance. Unlike other solutions, Plastiq processes card payments and sends them in a form that recipients already accept, either via electronic bank transfer or check. Recipients do not need a Plastiq account to accept card payments submitted through their service.
Any business, institution, or person who has provided a good or service in the US or Canada even if they don’t accept cards.
For example, you can pay your friend for walking your dog, but not for buying you dinner. The recipient of your payment won’t have to register with our service or make any changes to the payment methods they currently accept.
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For this service, Plastiq standard processing fee is 2.5% for credit cards and 1% for debit cards. Once a payment has been processed, it will generally take 5 to 7 business days for the check to be delivered to the payee.
If you’ve opened some new credit cards with large sign-up bonuses, you will have to hit certain minimum spend requirements in the stated time frame (usually 90 days). Paying rent or mortgage is where we spend a large chunk of our money so for a small fee, you can now put those large expenses on your new credit cards to help you earn the sign-up bonus. Make sure you compare the value of the bonus points versus the fee to see if the bonus is worth more than the fees charged.
You can also use Plastiq for credit cards that have bonuses for hitting specific annual spend thresholds. From free hotel nights to bonus miles or points to elite status, using Plastiq to pay your bills can help you earn these perks. You’ll have to decide if these perks outweigh the fee in your particular situation.
When you use Plastiq, the transaction will process as a purchase. But watch out to make sure it is not processed as a cash advance. When using Visa cards, if the biller or recipient is not already in the Plastiq processing system, your transaction might be processed as a cash advance. If the payment is going to be processed as a cash advance, their system will issue a warning so you can cancel before the payment is made. The only way to get around this is to make the initial payment with an American Express or MasterCard credit card. Once this is done, the biller or recipient will be in their system, and you won’t run into future issues with your Visa cards.
Alternative? Buying Amazon.com gift cards (no expiration).
How To Lower The Processing Fees
Plastiq has a referral program that allows you to earn fee-free dollars (FFD). This means that if you have 1,000 FFDs, your next payment or payments totaling $1,000 will not get charged a fee. Anything over the $1,000 amount, would still be subject to the standard Plastiq fee.
Share your referral link with friends via email, social networks, and anywhere else you can think of and get rewarded in return for every person who registers with Plastiq via your referral link or code and they MUST make payments totaling $500 or more. Your account and your friends account will be credited within a 2 business day of them meeting that goal.