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It’s easier to meet minimum spending requirements to earn credit card sign-up bonuses when you can include your biggest expenses. Unfortunately, some of these (such as rent, home repair, etc.) don’t typically take credit cards as payment.
Plastiq is a service that accepts your credit card as payment (for a fee) and then pays those bills.
Until November 30, 2015, Plastiq is dropping the fee to 1.5% when you make a 1-time, immediate bill payment with any MasterCard.
I’ll explain how it works and if you should consider it!
What’s the Deal?
Link: Sign-Up for Plastiq
Link: My Review of Plastiq
Plastiq is a bill payment service that allows you to use a credit card to pay bills and invoices that don’t normally take credit cards, like:
- Rent and utility bills
- Tuition and housing fees
- Home repair and construction
- Income and property taxes
- Babysitters, nannies, child care expenses
- Coaches, trainers, fitness clubs
- Attorneys and legal fees
Until November 30, 2015, at 5:00 pm Pacific Time, you’ll be charged a lower 1.5% fee when you use your MasterCard to make a 1-time, immediate bill payment with Plastiq. Normally, Plastiq charges 2.5% for credit card payments.
So recurring payments, or payments scheduled for the future do NOT receive the better rate. But this could be a good deal if you have a large invoice coming up, or want to pre-pay a bill and pay lower fees.
Only MasterCard payments receive the lower rate. This could be worth it if you’re trying to meet minimum spending requirements on MasterCards like:
- Barclaycard Arrival Plus
- Citi® / AAdvantage® Executive World Elite™ Mastercard®
- Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard®
- Citi ThankYou Premier
- Citi Prestige
It could be worth it to pay the 1.5% fee to help reach the spending for a big sign-up bonus, like the 50,000 Citi ThankYou points you’ll earn with the Citi Prestige card after you spend $3,000 in the 1st 3 months of opening your account. (EXPIRED.)
Don’t Fall Behind on Your Bills, Come Out Ahead!
In some cases, you could even make a small profit with this deal!
For example, if you spent $1,000 using your Barclaycard Arrival Plus, Plastiq would add a $15 fee ($1,000 x 1.5%).
But you’d earn 2,000 Barclaycard Arrival miles. They’re worth $20 when you redeem them for travel purchases of $100 or more.
And you’ll get a 5% rebate (worth 100 Barclaycard Arrival miles) when you redeem your miles for travel. Not a bad deal for bills you would have paid anyway!
Or consider using a cash back card like the Citi Double Cash. You’ll earn 1% cash back when you make your purchase, and another 1% when you pay it off. So you’ll still come out ahead!
Note: Some folks report delays in Plastiq payments reaching their payee. So I would NOT use them to make time-sensitive payments!
Until November 30, 2015, you’ll pay a lower fee of 1.5% when you use your MasterCard to make a 1-time, immediate bill payment using Plastiq.
With Plastiq, you can pay bills and invoices that don’t normally accept credit cards, like rent, utilities, loans, handymen, and more.
Normally, Plastiq charges 2.5% for credit card payments. So this could be a good way to help meet minimum spending requirements on cards like the Barclaycard Arrival Plus or Citi Prestige for a small fee.
And in some cases, you might actually make a little money!
That said, I wouldn’t use Plastiq for important or time-sensitive payments, because some folks report issues with payments being processed on time.
Have you used Plastiq? What do you think of their service?
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