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Plastiq.com Pay Bills with Credit or Debit Card

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Why? . My bank doesn't charge me anything to push payments. Why would one pay a fee? For manufactured spending?

 

I could see this possibly being useful for someone that needs to meet new card sign up bonuses spend, by say paying mortgage or such for a couple months. Also use a cashback card to recoup some of the 2.5% fee.

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They take 2.5%. Rewards you earn on cards aren't worth that, so why bother.

 

If my memory is correct, I think they were also trying to market a combo card, like the Coin Card, that automatically picked the card with the best rewards. That didn't work out, so they're trying this.

Edited by Burgerwars

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An article states that you could technically pay credit card bills with other credit cards through plastiq.com. I wouldn't recommend this type of activity though.

 

Jimmy.

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Most CC companies charge a 3% BT fee. Someone could get a new 0% purchase card and in essence use this service to BT saving 0.5%.

 

Also a way as was mentioned to meet minimum spend.

 

Are there better ways. Yes. Would this be a simple way though. Yes

 

Really though, this product is made for people to pay things with credit that they don't have the cash to pay for otherwise.

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It is very useful. A lot of billers don't accept credit cards or hit you with a larger surcharge than 2.5%. So depending on what cards and cashback you have, this can be for example .5% or free etc. Or if someone wants to meet minimum spend easily and doesn't mind paying a little. I hope it works out well.

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I'm not seeing the problem. A lot of professional services providers don't take credit, and deal with checks.

 

This is a good way to pay those people with credit.

 

Return per $ varies on what you want to do with the points. :)

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during NBA finals I might check this out. Send 10K to electrics company, gas, etc.

I fell asleep on 0 and woke up on the return key. Now send me a refund check.

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Very slow firsthand (and second) experience here....3 weeks to deliver mortgage payment. Never. Again.

 

 

This sort of thing makes me wonder if they aren't using CC companies for cash flow. Most CC issuers pay pretty quickly so plastiq might conceivably be getting a week or two of cash flow. At the extreme there was the gold seller, tulving.com that sold gold at one of the lowest markups in the market. Their deliveries started getting longer and longer as it transitioned into a Ponzi. It was shut down with the loss of many millions from peeps that send in checks but didn't get the gold. Fed's put him away.

 

That said, plastiq isn't anywhere near that but long delays sending payments often is a cash flow flag. They do seem well funded.

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Very slow firsthand (and second) experience here....3 weeks to deliver mortgage payment. Never. Again.

 

 

This sort of thing makes me wonder if they aren't using CC companies for cash flow. Most CC issuers pay pretty quickly so plastiq might conceivably be getting a week or two of cash flow. At the extreme there was the gold seller, tulving.com that sold gold at one of the lowest markups in the market. Their deliveries started getting longer and longer as it transitioned into a Ponzi. It was shut down with the loss of many millions from peeps that send in checks but didn't get the gold. Fed's put him away.

 

That said, plastiq isn't anywhere near that but long delays sending payments often is a cash flow flag. They do seem well funded.

 

 

Very interesting.....

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This was my first time using Plastiq. Had a spend requirement to meet so gave this a shot. Yes, sucked to pay $30 or so to meet it, but I figure if I would have bought gift cards at $4.95 each I would be out $15, so it was worth the extra $15 this one time. Especially since this has been a low-expense time of the year for me, which has made it hard for someone who only does R$ to meet the spend requirements.

 

Payment was made on the 28th. Showed on the credit card on the 29th. Received email on 3rd that check was mailed and would be received in 5-7 days. Here is it the 15th, and still no check.

 

I will be filing a CFPB complaint today, and they will never see my business again. I have to agree with what some others have posited: this seems like a scam where they are using the float between getting paid by the credit card companies and cutting the checks. Even if they had mailed it a full week after they claimed they did, it would have arrived by now.

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I use this service monthly to pay the rent on a storage unit where the owner does not take credit cards. I'm very mobile - often away from home for weeks or months at a time. I don't carry a checkbook with me (and wouldn't send one from overseas anyway). One time they hadn't cashed my personal check for a couple of weeks (I assumed they had already cashed it and didn't look closely enough at my account) and I transferred money out of my account forgetting about it and the storage check bounced. It was very embarrassing because I was selling an $8,000 item that was in the unit and I got there with the buyer and there was a lock on it. Totally my fault in that case -- but the point is that it became a real pain in the nuts over time. I started paying it with Plastiq for the sheer automation and time and hassle it saved me. The rent is $140/mo...so for $3.50, I don't have to think about it. I'm earning airline miles, which I typically value at 2 cents a mile as I won't redeem for less than that. I often redeem for a much higher value than that. Still, when I factor in the 2 cents a point, I'm down .5% -- seventy cents in this case. Actually, since i essentially earn two cents a dollar on the full $143.50, i earn about $2.86 back. For $0.64 a month, or $7.68 per year, I avoid having to even think about paying the bill. I'm cool with that.

 

For those concerned about payment being on time, I knew that could be an issue. My payment is due on the 1st of the month. Around the 23rd of the last month I paid manually, I sent out my check and set up Plastiq to pay the next month's rent on the 14th or 15th of the following month. I figured that gave them 3 weeks between the day I set it up and the first payment -- and then more than 2 weeks for that payment to arrive. I've not called the storage people to make sure they are getting the checks, but I get an email notification each month around the 14th or 15th that my payment was charged successfully and the check is going out. The storage company hasn't locked my unit or sent me anything in the mail, so it seems they are getting their checks.

 

I have also suggested it to friends who have opened a credit card and don't know how to spend without spending or are adverse to risk. At 2.5%, a $3k spend costs $75 to complete. The opening bonus will far eclipse that cost and then it requires no time or effort to hit -- just throwing the mortgage or rent payment on it (again, far in advance as I did) will likely do the trick.

 

It's not a good technique if you're living paycheck-to-paycheck and can't afford to cover a double payment if something goes wrong, but I've found it to work well for my purposes.

Edited by TheScholar

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I've not called the storage people to make sure they are getting the checks, but I get an email notification each month around the 14th or 15th that my payment was charged successfully and the check is going out. The storage company hasn't locked my unit or sent me anything in the mail, so it seems they are getting their checks.

 

Just my personal opinion, but is that really a sound strategy?

 

The sheriff has not posted a foreclosure sign on my door yet, and my car had no been repo'd. so I assume all my checks are getting there? While most of my payments are electronic, I always take a few minutes (prior to the due date) to verify the payments were received and properly posted.

 

I am sure it has worked out conveniently for you. But since my rebuild, I am OCD about my credit and about paying bills. That someone ends me a notification on 3/3 joyfully telling me 'the check is in the mail' and on 3/15 it has not arrived...sadly, that will be the end of our business relationship. That I click the link above and find out the terrible experience I have had is about the standard for this company makes me wonder if I should just file a complaint with my credit card company and get the charge reversed?

 

On a side note, a few minutes ago, I got an email from Plastiq reminding me that I had not paid Creditor X in a while, and perhaps I would like to set it up as a recurring payment? Perhaps not...

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I mean, I hear you barking. I won't argue that you're wrong. I just haven't had a problem. This one bill has no electronic option, so Plastiq saves me time and hassle and hasn't failed me yet. I reserve the right to change my opinion if they ever do, but at this point it's working.

 

For the record, if it were my mortgage or another such bill, I'd be even less concerned. I'd set that to pay at least two weeks before the due date. I'd log into my account on the due date to check it and make the payment myself if they hadn't received it and then take it up with Plastiq.

 

As I said, though, this only works if you're prepared to make a double payment if something goes awry (if Plastiq takes your payment but the check gets lost and you have to also pay the mortgage company or some such issue).

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I also haven't had a problem. I've paid a mortgage payment and car note with plastiq to meet minimum spend on different cards. I sent the payments 2 weeks in advance of their due dates and they were both received and deposited within 10 days. I know some people have had problems. I'm not using it currently because I don't need it. But I wouldn't hesitate to use it again.

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I should also note that plastiq isn't the only player in the game. There is RadPad for rent and a host of others.

 

RadPad only charges 1.99% for MC. Looks like DW's $3K spend for 50K miles is in the bag. :grin:

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