How Plastiq Works and What You Can Pay: The Complete Guide (2019)

Plastiq is a service that lets you pay virtually any bill with a credit card. There is a 2.5% flat fee for all transactions, and there are a few payment type restrictions for each various credit card issuers.

The idea is that you can pay a merchant with a credit card, and Plastiq will generate either a check, ACH payment, or wire. Why pay with a credit card? We typically recommend using Plastiq to hit a minimum spend requirement on a new credit card or to earn more points for a specific redemption.

Try Plastiq and get $500 in fee-free payments after you spend $500 (referral link): http://bit.ly/asksebbyplastiq

What Bills Can You Pay With Plastiq?

Below is a list of ideas on common recurring bills you can pay with Plastiq:

  • Rent

  • Mortgage (Mastercard and Discover only)

  • Tuition

  • Car payment

  • Taxes

  • Wedding vendors

  • Home repair vendors

  • Daycare

  • Business rent

Living in San Francisco, rent is my largest bill each month. Instead of writing a check to my landlord, I use Plastiq to hit minimum spend requirements on new credit cards.

Since Plastiq charges a 2.5% transaction fee, I recommend only using it when you need to. If you can pay your bills with a credit card for a little or no fees, definitely take that route.

How to Use Plastiq

  1. Sign up for a new account here: http://bit.ly/asksebby-plastiq

  2. Tell Plastiq who you want to pay by entering the recipient information, payment amount, and credit card you would like to use

  3. Plastiq will charge your credit card for the respective amount + 2.5% transaction fee

  4. The recipient will receive payment via check or ACH

Which Payment Types are Accepted for Different Credit Cards?

The types of payments vary by credit card. Below are infographics that show the breakdown for each card issuer.

Try Plastiq and get $500 in fee-free payments after you spend $500 (referral link): http://bit.ly/asksebbyplastiq

FAQ

How long do Plastiq ACH payments take?

If your decide to use Plastiq to send electronic payments, the following timelines apply:

  • Domestic Wire (Payment arrives same-day)

  • International Wire (Payment arrives next-day)

  • ACH Direct Deposit (Payment arrives in 4-5 business days or expedited option available)

Can I pay my mortgage with Plastiq?

Yes, but only with a Mastercard or a Discover credit card.

Does Plastiq count as a cash advance?

No. If your transaction codes as a cash advance, you will receive a red warning bar before it’s processed. Do not proceed. To prevent this, lower your cash advance limits to $0-$100 so in the case something does happen, the transaction won’t go through.

Does Plastiq accept peer-to-peer payments?

No, Plastiq doesn’t accept peer-to-peer payments. We don’t recommend doing this anyway because your friend might have tax consequences for accepting payments.

Are there any Mastercards worth getting since American Express doesn’t take mortgage payments?

If you’re looking to travel, the IHG® Rewards Club Premier Credit Card or the Citi Premier℠ Card are good options to look into.



Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines or hotel chain, vendors or companies, and have not been reviewed, approved, or otherwise endorsed by any of these entities. 

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