For a fee, Plastiq lets you use debit or credit cards to pay bills that dont typically accept cards as payment.
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Plastiq is a service that lets individuals and businesses use debit or credit cards to pay vendors that dont otherwise accept those payment methods.
In exchange for this convenience, Plastiq charges you a processing fee, which can be expensive — as of October 2023, it was 2.9% for both credit cards and debit cards. And of course, if youre using a credit card and cant pay those bills off each month, youll incur interest at whatever ongoing rate your card charges.
But if you need some breathing room as you wait for a paycheck or windfall to arrive, Plastiq could be cheaper than a high-interest option like a cash advance or payday loan — assuming you can pay the bill off quickly, and especially if you use a rewards credit card that can defray the processing fee.
With the Bilt World Elite Mastercard® Credit Card, you can pay rent (and earn rewards on it) without having to worry about a transaction fee, even if your landlord doesnt accept credit cards. The card doesnt have an annual fee, and it can be a cheaper alternative to services like Plastiq. Similarly, the Mesa Homeowners Card promises the ability to earn fee-free rewards on mortgage payments and day care.
Ever Wished You Could Pay Anything With Your Credit Card?
Let me tell you a story. Last month, I was staring at my rent bill, thinking how nice it would be if I could just swipe my rewards credit card and earn those juicy travel points. But my landlord only accepts checks. Sound familiar?
That’s where Plastiq bill pay comes in – it’s like having a financial superpower in your back pocket. But is it really worth the fees? Can it actually help your cash flow? And what the heck are “fee-free dollars” anyway?
I’ve been using Plastiq for over 2 years now, and I’m gonna spill ALL the tea on how it works, when it makes sense, and when you should probably just write that old-fashioned check.
What Exactly is Plastiq? The Simple Explanation
Plastiq is a third-party payment service that lets you pay virtually ANY bill with your credit card – even when the vendor doesn’t accept cards. Yep, that means rent, mortgage payments (with some restrictions), contractor invoices, taxes, utilities, and more!
Here’s the basic idea:
- You give Plastiq your credit card info and tell them who to pay
- Plastiq charges your card (plus their fee)
- Plastiq sends payment to your vendor via check, ACH transfer, or wire
The cool part? Your vendor doesn’t need a Plastiq account They just receive payment the way they normally would – by check, bank transfer, or wire From their perspective, it looks like you paid them directly.
How Plastiq Works: The Nitty-Gritty Details
Setting up Plastiq is super easy (I did it while binge-watching Netflix):
- Create a free account on Plastiq.com or download their mobile app
- Add your credit card info (they support Visa, Mastercard, American Express, Discover, and even Diners Club)
- Add recipient details including who to pay, their address or bank info, and payment method
- Schedule your payment – one-time or recurring
Plastiq will process your card payment and send funds to your vendor via your chosen method:
- Paper check (typically takes 8 days to arrive)
- ACH bank transfer (faster option)
- Wire transfer (fastest, great for international payments)
The platform also syncs with popular accounting software like QuickBooks Online, Sage Intacct, Oracle Netsuite, and Xero, which is fantastic for business users who want to keep everything organized.
The Costs: Let’s Talk About Those Fees
Here’s where ya gotta pay attention. Plastiq isn’t free – they charge a processing fee for their service:
- 2.9% fee for credit card payments
- 2.9% fee for debit card payments (they used to charge just 1%, but raised it in March 2022)
So if you’re paying a $2,000 rent bill, that’s an extra $58 in fees. Ouch!
BUT – and this is a big but – there are ways to reduce or even eliminate these fees
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Referral program: When friends sign up and make $500+ in payments, you earn $100 in “fee-free dollars” (basically credit toward future payment fees)
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Special promotions: Plastiq occasionally runs limited-time offers with reduced fees
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Business customers: Some business users may negotiate lower rates based on volume
When Using Plastiq Actually Makes Sense
Is paying an extra 2.9% ever worth it? Actually, yes! Here are some situations where Plastiq can be a smart move:
1. Meeting Credit Card Sign-up Bonuses
Need to spend $4,000 in 3 months for that sweet 80,000 point bonus? Plastiq can help you hit that minimum spend requirement by letting you put big bills on your card. If your bonus is worth $800+ in travel value, paying $116 in Plastiq fees to unlock it is totally worth it.
2. Emergency Cash Flow Management
When you’re in a temporary cash crunch but have credit available, Plastiq gives you breathing room. The 2.9% fee is WAY cheaper than late fees or, heaven forbid, payday loans.
3. Maximizing Rewards on Big Expenses
Some credit cards offer category bonuses that can offset Plastiq fees. For example, if your card offers 3% back on all purchases, you’re still coming out ahead after the 2.9% fee.
4. Business Cash Flow Optimization
For businesses, Plastiq can be a game-changer. It lets you pay vendors immediately with a credit card, potentially accessing early payment discounts while extending your actual cash outlay until your credit card bill is due.
When Plastiq Probably Isn’t Worth It
Let’s keep it real – sometimes Plastiq just doesn’t make financial sense:
- Regular monthly bills if you’re only earning 1-2% rewards (you’re losing money after fees)
- If you carry a balance on your credit cards (the interest will demolish any benefits)
- When faster payment methods are crucial (checks take time to process)
- For mortgage payments with Visa cards (they don’t allow it)
Plastiq for Businesses: Beyond Bill Pay
Plastiq isn’t just for paying bills – they’ve expanded their services to help businesses in multiple ways:
Plastiq Accept
This feature lets businesses accept credit card payments without paying merchant fees. Instead, your customers pay the 2.85% fee if they choose to pay by card. It’s a win-win – you get paid faster, and customers have payment flexibility.
Same-Day Delivery Options
Plastiq offers same-day ACH transfers, overnight checks, and international/domestic wire transfers for when time is of the essence.
Automated Bill Capture
Email, sync, or upload bills to Plastiq, and they’ll automatically scan and enter payment details for you. This is a huge time-saver for businesses handling lots of invoices.
Roles and Approval Permissions
Set up different user roles and approval workflows to maintain proper financial controls within your organization.
Is Plastiq Safe? Security Concerns Addressed
I was skeptical about handing over my credit card info at first, but Plastiq takes security seriously:
- PCI Level 1 compliance (the highest standard in payment security)
- Two-factor authentication for account access
- AES 256-bit encryption to protect your data
- Zero liability protection from your credit card (for unauthorized purchases)
In my 2+ years using the service, I’ve never had a security issue. Payments have always reached their destination, even if sometimes a bit slower than I’d like.
Plastiq Alternatives: Other Options to Consider
Plastiq isn’t the only game in town. Here are some alternatives:
- Mesa Homeowners Card: No annual fee and offers fee-free rewards specifically on mortgage payments and day care expenses.
- Melio: Similar service focused on business payments with slightly different fee structures.
- Your bank’s bill pay service: Many banks offer free bill pay services, though they typically don’t allow credit card payments.
Real Talk: My Personal Experience with Plastiq
I’ll be honest – I don’t use Plastiq for every bill. That would be financial madness. But I do use it strategically:
- When I’m trying to hit minimum spend on a new credit card
- For my quarterly tax payments when I know I have a big client payment coming but it hasn’t arrived yet
- For my business expenses when vendors offer early payment discounts that exceed the Plastiq fee
The interface is pretty intuitive, though sometimes payments take longer than expected to process. Customer service has been responsive when I’ve needed help.
Quick Tips to Get the Most Out of Plastiq
If you decide to use Plastiq, here are some pro tips I’ve learned:
- Plan ahead for check payments – allow at least 8 business days
- Check card restrictions before making payments – not all cards work for all payment types
- Look for promotions – Plastiq occasionally offers reduced fees
- Use a card with purchase protections for added security
- Refer friends to build up fee-free dollars
- Keep track of when payments will hit your credit card statement to avoid surprises
Final Thoughts: Is Plastiq Bill Pay Worth It?
So here’s the bottom line: Plastiq isn’t a service you should use for EVERY bill payment. That 2.9% fee adds up fast. But used strategically, it can be an incredibly powerful financial tool.
For individuals looking to maximize credit card rewards or manage temporary cash flow issues, it’s a solid option. For businesses seeking to optimize working capital and payment processes, it can be transformative.
Like any financial tool, the key is understanding when and how to use it. Used wisely, Plastiq bill pay can absolutely enhance your financial flexibility.
Have you used Plastiq before? I’d love to hear your experiences in the comments! And if you have questions about specific scenarios where it might make sense, drop those below too.
FAQ: Your Burning Questions Answered
Can I pay my mortgage with Plastiq?
Yes, but not with all card types. Visa and American Express can’t be used for mortgage payments through Plastiq, but Mastercard and Discover work fine.
How long do payments take to process?
It depends on the payment method. ACH transfers are typically faster (1-3 business days), while paper checks can take up to 8 business days to arrive.
Can I cancel a payment after I’ve scheduled it?
Yes, but only if the payment hasn’t been processed yet. Once Plastiq has initiated the payment, it cannot be canceled.
Does using Plastiq affect my credit score?
Using Plastiq itself doesn’t directly impact your credit score. However, putting large expenses on your credit card can increase your credit utilization ratio, which might temporarily affect your score.
Can I use Plastiq internationally?
Yes! Plastiq can send payments to vendors in over 45 countries using 20+ currencies.
Plastiq: The basics
Plastiq facilitates one-time or recurring payments for bills such as rent, mortgage, utilities, day care, homeowners association fees and other expenses. You add a debit or credit card to your Plastiq account and charge it in the amount of the bill, and then Plastiq pays the company on your behalf via a method that the vendor accepts: ACH, wire transfer or an old-fashioned paper check. (Checks, for instance, read to the vendor as coming from you, not from Plastiq.) The recipient does not need a Plastiq account to accept payments.
Plastiq generally charges a 2.9% fee for credit and debit cards. Terms apply. The service is compatible with:
- Visa.
- Mastercard.
- American Express.
- Discover.
- Diners Club.
(Plastiq stopped taking American Express in February 2023, then resumed AmEx acceptance in October 2023.)
However, some credit cards have restrictions on the types of bills you can pay via Plastiq. For example, Visa cannot be used to make mortgage payments through the bill pay service. Meanwhile, Chase has an expanded definition of “cash-like transactions,” and its unclear what implications that may have for transactions processed with a Chase card through Plastiq.
And some credit cards may not be compatible with third-party bill payment services at all. Before using one, read your card’s terms and conditions, or ask the issuer how (or whether) the payment will be processed. It might be treated as a cash advance instead of a purchase. Plastiq says that it notifies customers and blocks payments before they are processed as cash advances.
How it works
Start by creating a free account with Plastiq and adding your debit or credit card information. You can add multiple cards and select one as your default.
Youll also need to add recipients, including vendor name and country. This information will be saved in your account for future use.
To send a payment, select the recipient, the amount owed, the recipient’s preferred payment method (ACH, wire transfer or check) and a date for the funds to arrive. You may also need specific details about the bill youre paying, including, for example, a loan number for the mortgage, a unit number for rent due on an apartment, etc. You can add more details in the “memo” section.
You can make a one-time payment or set them up to repeat automatically. For recipients that accept only checks via snail mail, you may have to submit the payment earlier than usual. Checks typically take eight days to arrive, according to Plastiq’s website, so build in some padding on the calendar to avoid paying late.
Plastiq provides a breakdown of fees, in the form of dollars and a percentage rate, on the payment review screen prior to completing your transaction. Once you tell Plastiq to send the payment, you’ll receive payment cconfirmations from the company along the way.
Is it ever worth paying an extra fee to use a credit card?
“More often than not, Ill go to great lengths to avoid processing fees — except when Im trying to hit the spend requirement for a sign-up bonus. For example, I (temporarily) switched the payment method for my sons tuition from a checking account to a credit card. The value of the sign-up bonus that I was pursuing far outweighed a one-time processing fee. After I snagged the sign-up bonus, I changed the payment method back to an ACH withdrawal.”
“I love using a service like Plastiq when Im trying to earn a big sign-up bonus on a new card. If a merchant or contractor doesnt accept credit cards, I can send them a check through Plastiq for a fee that is way lower than the value of rewards I earn through the sign-up bonus. However, I wouldnt use the service to solely earn rewards from everyday spending on the card without getting a new sign-up bonus, as the service fee will likely eclipse the value of the rewards you earn.”
“It can make sense to pay an extra fee to put a large expense on a credit card if doing so with net you a big sign-up bonus, which can more than make up for the fee. In most cases, though, processing fees will eat up the value of your rewards.”
“More often than not, Ill go to great lengths to avoid processing fees — except when Im trying to hit the spend requirement for a sign-up bonus. For example, I (temporarily) switched the payment method for my sons tuition from a checking account to a credit card. The value of the sign-up bonus that I was pursuing far outweighed a one-time processing fee. After I snagged the sign-up bonus, I changed the payment method back to an ACH withdrawal.”
“I love using a service like Plastiq when Im trying to earn a big sign-up bonus on a new card. If a merchant or contractor doesnt accept credit cards, I can send them a check through Plastiq for a fee that is way lower than the value of rewards I earn through the sign-up bonus. However, I wouldnt use the service to solely earn rewards from everyday spending on the card without getting a new sign-up bonus, as the service fee will likely eclipse the value of the rewards you earn.”
“It can make sense to pay an extra fee to put a large expense on a credit card if doing so with net you a big sign-up bonus, which can more than make up for the fee. In most cases, though, processing fees will eat up the value of your rewards.”
