Should You Use Plastiq to Pay Rent, Loans, Utilities, & More With a Credit Card?

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There’s a new way to pay bills that can’t normally be paid with a credit card.  Plastiq says you can pay any bill (businesses or individuals) using their service and they’ll charge you a flat 2.5% fee.

But for a limited time, you’ll only pay a 1.99% fee when you use your MasterCard or American Express card!

That’s cheaper than other bill payment websites, like Evolve Money or Radpad (which add a ~3% fee).

Should You Use Plastiq To Pay Rent Loans Utilities More With A Credit Card

You Can Pay Tuition, Rent, Mortgage, Car Payments, and More With Plastiq

This could be a good way to meet minimum spending requirements or earn miles and points on big bills like tuition or property taxes.  But it’s not for everyone!  I’ll explain.

What’s the Deal?

Link:   Plastiq

Link:   How Plastiq Works

Plastiq is a bill payment service that started in Canada, but recently expanded to the US.  They say you can use a credit card to pay any bill or invoice, including:

  • Rent and utility bills
  • Tuition and housing fees
  • Home repair and construction
  • Income and property taxes
Should You Use Plastiq To Pay Rent Loans Utilities More With A Credit Card

Use Plastiq to Meet Minimum Spending Requirements and Earn Miles & Points

Because Plastiq charges a lower fee (2.5%) than most other bill payment services, this could save you money.

And it’s a better deal now if you use your MasterCard or American Express.  You’ll only pay 1.99% for a limited time.

That said, I don’t normally recommend paying a fee to use a credit card for bill payments, because the fee usually negates the value of the miles and points you’ll earn.

But if you need to quickly meet minimum spending requirements, this could be a good deal for you.

How It Works

To use Plastiq, 1st create an account using your name, email address, phone number, and a password.  They’ll send you an email to verify your email address, then you can start paying bills.

Should You Use Plastiq To Pay Rent Loans Utilities More With A Credit Card

Register for Plastiq by Entering Your Details

You can add credit cards to your account and choose which 1 to use to pay certain bills.  Currently, Plastiq accepts Visa, MasterCard, and American Express.

Should You Use Plastiq To Pay Rent Loans Utilities More With A Credit Card

Add Your Visa, MasterCard, or AMEX to Plastiq to Start Paying Bills

Adding payees is straightforward.  Some payees are already registered in their system, but most of these are Canadian businesses and institutions.

Should You Use Plastiq To Pay Rent Loans Utilities More With A Credit Card

Many of the Registered Businesses on Plastiq Are Canadian, but You Can Add Any Payee You’d Like

To add your own payee, enter their name, address, telephone number, and the type of payment you’ll be sending them (for example, tuition, rent, or utilities).

Should You Use Plastiq To Pay Rent Loans Utilities More With A Credit Card

Add Your Payee’s Details and Type of Payments You’ll Send

Once you’re ready to make a payment, select your payee and enter your account information, payment amount, and credit card validation code.

Plastiq will automatically add the fee to the payment amount.

Should You Use Plastiq To Pay Rent Loans Utilities More With A Credit Card

Include Your Account Number, Name, and Payment Amount, Then Submit Payment

Plastiq says electronic payments take 3 to 5 days to process.  And for paper checks, you should allow ~1 week for your payment to arrive.

That said, folks on FlyerTalk report delays in mailing paper checks.

Is It Worth It?

It’s usually NOT worth paying a fee to earn miles and points, because the fee usually cancels out the value of what you’ll earn.

Plastiq is NOT meant to be a person-to-person money transfer service.  But you can pay individuals for goods and services (like your handyman or babysitter).  Just be sure to indicate on the payment page what type of bill you’re paying.

Commenters on Doctor of Credit and View From the Wing have mixed information regarding whether gift cards are accepted.

Plastiq payments (with the exception of a couple of Canadian banks) should post as a purchase.  So there shouldn’t be a cash advance fee.  And you’ll earn miles and points for the payment.

Should You Use Plastiq To Pay Rent Loans Utilities More With A Credit Card

You Should Earn Miles and Points When You Pay Utility Bills With a Credit Card Through Plastiq

That said, I haven’t (yet) experimented with Plastiq, so I don’t have personal experience.  I’ll report back when I do!

Note:   If you’re paying income taxes, there are cheaper ways to pay by credit card.  Some payment processors charge fees as low as 1.87%, and the charge definitely codes as a purchase (and earns miles, points, and cash back).

This could be a good deal for folks who are struggling to meet a minimum spending requirement.

Bottom Line

Plastiq is a new online service that allows you to pay bills (businesses or individuals providing you with goods and services) with a credit card for a flat 2.5% fee.

And for a limited time, payments made with MasterCard or American Express cards will only be charged 1.99%!

Their fee is lower than many other bill payment websites.  And most banks treat Plastiq payments as a purchase, so you won’t be charged a cash advance fee and will earn miles and points.

It’s usually NOT a good idea to pay a fee to use a credit card anyway, because the fee usually cancels out the value of the miles & points you’ll earn.  That said, 1.99% is a very good rate.

But if you’re in a hurry to meet a big minimum spending requirement, this could be worth it for you!

Have you tried Plastiq?  I’d love to hear about your experiences.

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24 responses to “Should You Use Plastiq to Pay Rent, Loans, Utilities, & More With a Credit Card?

  1. i am from canada and use it to pay our business tax. I am using the mastercard capital one that gives me 2 points by paid $. This equal to buying Delta points @ 1 cent each. I dont like Delta FF but i think its a good deal at thoses prices…

  2. I use it to meet minimum spend – it is a great and easy service

    I won’t use it for regular as not worth it as you point out – but to make minimum spend quickly it is very easy

  3. Ok, several of you are hyping this (non) news this morning, that “plastiq” is offering a promo (wow, by golly wow!!!! — gee, don’t miss this “quick deal”) Concur Daraius with your general hesitance about paying fees to use cc, even to meet minimum spends.

    Curious you didn’t mention BlueBird above…. I pay all my bills with BlueBird — those not in their ever growing data base, I write out the provided (free) checks. And no fees via BlueBird for paying those bills.

    Ok, sure, I do at times pay fees for buying the various “products” to load bluebird….. but not always. In any case, never more than 1%. And yet ya’all are going ga-ga over a product that, by golly, gee whiz, has reduced their fee to “only” 2%. Not following.

  4. possible answer to my own question…. given that plastiq does facilitate direct, on-line payments with cc’s, this could be a time & $ saver (saving the trips to Wmt, staples, etc…. making it “worth” the extra 1% fee or so) Another “weapon” then in the potential ms arsenal.

  5. I used them once a couple months ago when this deal first surfaced…it was a major PITA. They froze my payment for weeks and asked me to submit a bill of sale proving that it was legit.

    I don’t really get why they are so aggressively targeting the blogs when they have to know people that read these blogs are MS’ers. Maybe this means they are going to relax a bit and turn a bit of a blind eye to MS activities…but I wouldn’t count on it.

  6. Please explain to me again how this would work if I wanted to pay my new landlord my monthly rent and it is an individual person I am paying. This is exactly what I need in order for it to be paid on my credit card and not via normal check and I don’t mind paying the fee.

  7. It’s not meant to used as a money transfer service but how do they differentiate ?

  8. Evolvemoney says it doesn’t charge fees for a “major” debit card, but then says citibank is not a major debit card. Really?

  9. Plastiq is shockingly annoying. I tried to do two things – set up a recurring payment for my car payments, and pay the rent for this month (I was planning to make that one recurring too, but I was running late this month, so the date shouldn’t stay the same.)

    I made a mistake entering the date on the car payment, hit the button to edit it – and found I had to edit every single payment individually. So I just canceled those and went ahead with the rent. Remember, I was running late so I wanted it to process quickly.

    I got a confirmation that everything was fine. The next day, after business hours, I got an email saying I needed to “further verify” my rent by emailing them my lease. Seriously? I also was told I needed to take a picture with a newspaper and a photo ID. By that point I was suspecting the whole site is a practical joke.

  10. WHAT? 3% is TOO much….

    i’ve paid my rent with the fixed tax $27 per payment – it’s approximately 1%
    But if i will pay 2 months rent, then it will be 0,5%.

  11. I placed a mortgage payment with Plastiq to meet a minimum spend on a card. I finished the process on August 20th for them to mail a check. It says 5-7 business days with a check. It is September 2nd and they still have not received my payment. I contacted the customer service department and the only thing they have to say is it was sent. Be careful using this process. We are currently on the 10th business day without payment received.

  12. I signed up for Plastiq during their recent 0% fee promo for utility payments. I set up 12 recurring monthly payments, entered my credit card info, confirmed the 0% promo fee and waited for first payment to occur.

    The situation with my utility payments is that the amount varies each month depending on how much water or electricity I use. In the summer, I could pay $250 for electricity but only $70 in the winter, but Plastiq requires you to setup recurring payments that cannot be changed to qualify for the 0% fee promo. For this promo, if you change the recurring amount you after you set it up, the 0% fee promo no longer qualifies and you would get charged up to 3%.

    So, Plastiq only worked for this promo if you had static (non changing) utility payments every month.

    In addition, Plastiq messed up on my first payment saying “our processor encountered issues that caused one or more of your payment to fail.” That’s a vague way of saying that we are not going to make the payment for you. Luckily I discovered this prior to my utility payment due date because I scheduled the Plastiq payment to occur 7 days prior to due date.

    I promptly cancelled my account and have no intentions of using this unreliable service again.

  13. BE WARNED… This company is completely AWFUL and totally incompetent at delivering payments on time! Do NOT risk it with an important payment.

    I have given them FOUR (!!!!) chances, and out of four uses, I have had ZERO successful/on-time payments and they have honored their guarantee to pay the late fee if it’s their fault ZERO times.

    They have mailed the check, made out to the bill company, to MY HOME ADDRESS… and then blamed me, saying I entered the send-to address wrong. I sent a screen shot SHOWING that the address I listed for the company in the bill pay set up is NOT where they send they check… NO response, and still no refund back to my credit card for the payment, I think I’m going to now have to dispute the charge with the bank. This is a TERRIBLE company, I won’t use them again.

  14. hollis boardman

    Please do not use this service. I paid $6.50 to send a payment to my power company on September 29th and it is now the October 12th. Called them on the 10th and the service person said it was sent out, but that it did seem like there was a problem since it had been 9 business days. She said someone would call me back shortly to help with the situation. Never heard back from them. AND, try and find a phone number on their website. The contact button on the bottom of site does not work. Terrible!

  15. Really nice Minimum Spend option –
    To pay utilities, mortgages, rent, loans etc and earn credit card rewards?
    Sign up under my link below and you will get $200 of FFD.

  16. Be careful! I have been following up with Plastiq for 60 days without success as a payment has not been delivered to the third party service provider. Successful dealings with Plastiq customer service is virtually impossible due to the fact that one receives error messages when trying to submit a support ticket or initiate a customer chat. Further there is only a recorded message when one calls in person. It’s been an extremely frustrating and disappointing situation which is still awaiting resolution.

  17. I sent one check via Plastiq, and it did not arrive by 3 weeks later. I then cancelled that, was credited the money back to my Amex card, and sent another. The second check has still not arrived 11 days after Plastiq claims that it was sent. I don’t know what their angle is here, but I am not yet sure that it is actually providing a service that (a) customers can actually use or (b) that they can make a profit on. I seem to be missing something here.

    How hard is it for anyone to send a check to an address?

  18. Read all the horror stories but there were some good ones so I gave it a shot. Figured I would allow my rent to arrive at least a week early and if problems arose, I had time to remedy the problem. My rent is due Aug 1st and the check is already in there hands. Fantastic. I’m adding other things for them to pay..

  19. So I use Plastiq to pay for my car loan. I RECOMMEND IT! 1.87% fee for MasterCard. I have Barclay’s Arrival, so it’s worth it even if I’m done with my minimum spend! Since I do have a minimum spend, it’s helping a lot with travel plans.
    The Plastiq system is easy…takes about 5 days to process. I will keep using ’til my car loans are all paid off.

  20. My rent payment was received in 8 days (including the weekend). I would definitely recommend sending the payment with plenty of time before deadlines to avoid late payments. otherwise so far so good 🙂

    Thank you very much 🙂

    • Did you make your rent payment to a management company? My landlord just owns this one property and doesnt use a management company.

  21. Plastiq service so far is reliable.. the mortgage payment takes about 5-7 days. The utility payments surprsingly takes 4-5 days. I still send the payments 15 days before the payment due date just in case.
    The credit card rewards help decrease the fees a lot (using my Citi Double cash back CC 2%!).

  22. I’m trying it on my car payment to capital one auto with a double cash. It will basically be like writing the check as the fee will cancel out, but will also give it some usage as double cash seems like low limits compared to my others I haven’t been using it as much. It’s not due for a couple of weeks so I have plenty of time if a problem arises. Plus I think they can electronically submit it.

  23. Have you tried Plastiq? I’d love to hear about your experiences.

    i tried their services for three payments. On all three occasions a letter was sent following my successfully getting thru their form requiring the reasonable data like amt and address and bill number that would enable them to get a check sent to the correct place and have it credited to thecorrect account.
    The problems then followed. All three places were flagged as “needing a review before payment could be sent” that review involved four items of information not specified as of yet in the bill payment process.
    1. A description of the service or produce that you are paying for:
    2. Any correspondence or contracts between you and the payee
    3. A link to a social media account (e.g., Facebook, Twitter, etc.) or website for the payee
    and a couple more;
    By the time i responded with details of the information to their “user case initiated:” the check’s ‘promised by’ date had come and gone and their final payment took longer than promised and was late. PITA and only worth it for large sums that might meet a cc spend requirement, and just for that. Not worth it for anything else.