Plastiq is a online bill payment service that allows you to pay rent, mortgages, and bills with a credit card. Plastiq could be mostly useful when accomplishing a minimum spend on a credit card or earn extra miles, points, or cash back; which makes it all the more necessary that we as a consumer must be aware that there may be futher issues involved with using a VISA credit card to make payments utilizing Plastiq. The biggest problem occurring at the moment is that VISA is could be coding certain payments as “Cash Advances.” These transactions do not earn you points or miles and will not count towards your minimum spending requirements. On top of that, you will more than likely accrued a higher fee and interest charge.
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Plastiq in Details:
Here’s the message that all VISA cardholders have been getting lately:
“WE RECOMMEND PAYING WITH A DIFFERENT CARD FOR THIS PAYMENT
Visa requires cash advance treatment for credit card payments to recipients who do not yet have a relationship with Plastiq. As such we recommend using a MasterCard, American Express, or Visa debit card for this payment.
The Plastiq team works quickly to build relationships with all new payment recipients, so the next time you pay <what you’re trying to pay>, you will likely be able to use your Visa credit card without issues. You can also speed up this process by sending your recipient to plastiq.com/business to sign up for free.”
Key Features:
- Mastercard 1.75%
- American Express 2.25%
- Visa – 2.5% service fee for payments using a Visa card (standard rate)
Final Analysis:
I wouldn’t consider using VISA for Plastiq either way at the moment because there’s currently a promotion for MasterCard and American Express cardholders to get a discounted fee of 1.75% (MC) and 2.25% (AE) anyways, but if you have a linked VISA card and you’ve received the message, it’s recommended that you stop using payments on Plastiq asap. If you want to avoid your payments being coded as Cash Advance, you will have two options: switch your payments to MasterCard or American Express or wait until Cozy Pay comes through… but I don’t expect the services to drop anytime soon and the 2.75% fee is a bit higher of a fee to pay. Don’t forget to check out our full list of Credit Card Bonuses if you’re not interested at the moment.
