We devote thousands of hours of research to help you get Big Travel with Small Money. You support us by signing-up for credit cards through partner links which earn us a commission. Here’s our full Advertising Policy.

Warning: Some Plastiq Payments Coding as a Cash Advance!

Warning: Some Plastiq Payments Coding as a Cash Advance!

Million Mile SecretsWarning: Some Plastiq Payments Coding as a Cash Advance!Million Mile Secrets Team

We devote thousands of hours of research to help you get Big Travel with Small Money. You support us by signing-up for credit cards through partner links which earn us a commission. Here’s our full Advertising Policy.

Via Doctor of Credit and folks on Reddit, certain Plastiq payments are coding as a cash advance when you use a Visa credit card.

This is not good!  Because cash advances do NOT count toward minimum spending requirements.  And they usually come with high fees and interest charges.

But Plastiq is notifying folks of the potential issue before you confirm your payment method.  If you see the warning, I’d recommend using a different card or an alternative service.

Plastiq Visa Warning
Some Plastiq Payments Are Coding as a Cash Advance on Visa Credit Cards. You Should See a Warning Before You Submit Your Payment Information

I’ll explain how you can avoid cash advances and how you can still use Plastiq!

Cash Advance Issues With Plastiq

Link:   Doctor of Credit

Link:   Reddit

Folks use Plastiq to pay rent, mortgages, and bills with a credit card.  These charges usually code as a regular purchase. 

Depending on the fees, Plastiq can be a good way to meet minimum spending requirements or earn extra miles, points, or cash back.

But now Plastiq is warning folks that certain payments could code as a cash advance on Visa credit cards.  And some folks on Reddit have already seen cash advance charges with cards like the Chase Sapphire Reserve.

I always recommend calling your credit card company and requesting your cash advance limit be set to zero (or close to zero).  This way any potential cash advance transactions will get declined.

If you’d like to continue using Plastiq, it’s probably best to use a MasterCard or AMEX card.  Plus, Plastiq is offering a limited-time promotion with lower credit card fees when you use these cards.

Or folks who pay rent with Plastiq might hold off until Cozy Pay launches.  But this new service might have higher fees.

Bottom Line

Certain Plastiq payments are coding as a cash advance when you use a Visa credit card.

These transactions do NOT earn miles and points or count toward minimum spending requirements.  And they also come with fees and interest charges.

I’d recommend contacting your credit card company to set your cash advance limit to zero.  This should avoid any potential issues.

If you liked this post, why don’t you join the 25,000+ readers who have signed-up to receive free blog posts via email (only 1 email per day!) or in an RSS reader …because then you’ll never miss another update!

Chase Sapphire Preferred® Card

Chase Sapphire Preferred® Card

  • Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
  • Chase Sapphire Preferred® named a 'Best Travel Credit Card' by MONEY® Magazine, 2016-2017
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening
  • No foreign transaction fees
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Get 25% more value when you redeem for travel through Chase Ultimate Rewards. For example, 50,000 points are worth $625 toward travel.
  • No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards

More Info

Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry that something went wrong, repeat again!

7comments

by Newest
by Best by Newest by Oldest

I used my Chase Reserve to pay some bills via Plastiq and it went thru as a regular payment

Author
Million Mile Secrets

Thanks for the data point!

Dr Heywood Floyd

I’ve NEVER had this issue seeing how I use it every month to pay for club dues.

I imagine this applies for those paying those paying a mortgage or something similar.

Author
Million Mile Secrets

I suspect that is the case. The large payments for mortgages may trigger a warning.

I have sent many payments to individuals using my Ink Plus (Visa business). They were coded as regular transactions and earned points. The categories I used in Plastiq were rent/real estate and utilities.

Author
Million Mile Secrets

Thanks for sharing your experience. I believe this happens only to certain new users!