Plastiq Review - Pay Your Bills with a Credit Card
Have bills that you can’t pay by credit card? Plastiq is a service that lets you use your cards to pay your bills for a small fee.
- Paying by check
- Paying by ACH transfer
- Maximizing credit card rewards
Everyone has bills. Mortgage payments, student loan debt, utility bills, and phone bills are just a few of the monthly bills that people have to deal with. Many companies accept credit and debit card payments, but some still want you to pay with a physical check. Plastiq lets you use your cards to pay these types of vendors.
What is Plastiq?
Plastiq is an online company that lets you pay your bills by using a credit card. The service is very simple. Sign up for an account, provide your credit card info, and you’re ready to start paying your bills. Just tell Plastiq who you need to pay and how much you owe them. Plastiq will charge your card for the amount, plus a fee, and mail a check on your behalf.
You can use Plastiq anywhere in the United States with any credit card on the four major networks though different card networks have different restrictions on the types of bills that you can pay.
Plastiq has a few features that are worth noting.
Make Payments by ACH or Paper Check
The whole goal of Plastiq is to let you pay your bills by credit or debit card. There are two ways that you can do this.
The basic method is to make your payments with a paper check. Plastiq charges your card and sends a check in the mail on your behalf. The recipient can deposit it to their bank account just like any other check.
If the company that you’re trying to pay accepts payments by ACH transfer, you can opt to have Plastiq send your payment by ACH instead. This is much faster than mailing a paper check, so you can save time if you need to make a payment quickly. To send payments by ACH, you’ll need the recipient’s banking info, including their bank account number and routing number.
Schedule Payments in Advance
When you get a bill, it usually includes the amount that you owe and the payment due date. You can use Plastiq to schedule payments months in advance. If you want to get ahead on paying your bills, you can use this feature to set up payments for things like property tax or renter’s insurance far before the bill comes due.
Set Up Recurring Payments
If you have a recurring bill, you can use Plastiq to set up a recurring payment. Plastiq will charge your card and mail a check based on whatever schedule you set. This is a useful tool if you’re using Plastiq to pay something that doesn’t change each month, like your rent or mortgage.
Plastiq is currently working on a feature that will let you set up recurring payments for bills that differ in amount each month, making the service even more convenient.
If you’re referred to Plastiq by a friend, you’ll get $500 Fee-Free Dollars (FFDs). This removes the fee from the next $500 you send through the service. The person who referred you will get $1,000 FFDs and you can earn $1,000 FFDs for each person you refer after you join.
Plastiq also offers promotions that reduce your fees if you schedule multiple payments or take advantage of new features, giving you additional opportunities to save.
Pricing and Fees
Plastiq charges a percentage fee for each payment that you make through its service.
If you use a credit card to make your payment, Plastiq’s fee is 2.5% of the amount sent. For example, if you send a $1,000 payment to your landlord, Plastiq will charge your card for $1,025. Debit card payments carry a 1% fee.
Plastiq offers some additional services, which carry an additional fee. For example, expedited payments carry the standard 2.5% fee plus an additional charge of .5%, $24.95 in FedEx fees, and a $10 handling fee.
Signing up for Plastiq is easy.
Start by visiting Plastiq’s website. Then, enter your e-mail address and click “Get Started.”
Check your e-mail for a message from Plastiq. Open it and click the button that says, “Create Your Account.” Enter your information on the following screen and you’ll be ready to go.
Once you’ve created your account, the first thing you’ll need to do is add a credit card and a payment recipient. Now you’re ready to start paying your bills by card.
Plastiq offers all of the essential security tools that you need to keep your account safe. To start with, the website uses powerful security software and the company is “certified compliant to the highest level of the Payment Card Industry Data Security Standards (PCI-DSS).”
If you want to keep your account extra secure, you can set up two-step verification. This requires you to use two methods of verifying your identity: your password and your phone. When you sign in to your account using an unrecognized device, you’ll be prompted to check your phone for a two-step verification code. Ideally, this means that anyone trying to break into your account will need to steal both your password and your phone to gain access.
Plastiq does not offer a phone app but has a fully-functional mobile site. You can use your phone to add new cards or payment recipients, schedule new payments or cancel ones that are already scheduled, or do any necessary account management.
Plastiq offers solid customer support. You can easily search a list of FAQs from your Plastiq dashboard. If you can’t find an answer to your question, live chat support is available Monday through Thursday from 7 AM to 6 PM PST and on Friday from 7 AM to 3:30 PM PST. Outside those hours, you can send an e-mail. Plastiq promises a response within one business day.
Pros & Cons
- Pay any bill with a credit card — Use your credit cards to pay bills that can only be paid by check or bank transfer.
- Earn credit card rewards — You’ll earn rewards when you use your credit card to make payments through Plastiq.
- Schedule payments whenever you’d like — You can set up recurring payments or schedule a payment for months in the future, making it easy to manage your monthly bills.
- Payments can be slow — If you’re paying a bill by check, you need to schedule your payment at least a week in advance. Depending on holidays, you might need to schedule payments 10 days in advance.
- Pay a fee for each payment — You’ll be paying a 2.5% fee for every bill that you pay with Plastiq, which can add up quickly.
- Payment restrictions — Depending on the type of card that you use, you may not be allowed to send a payment for certain bills. For example, you cannot pay for a car lease using an American Express card.
There are no true competitors to Plastiq when it comes to sending check payments while paying with your credit card.
These are some of the most common questions that people have about Plastiq.
Who is Plastiq For? Is Plastiq Safe?
Plastiq is for people who have bills that don’t accept credit cards. The best way to use Plastiq is to meet high minimum spending requirements on rewards credit cards that offer sign up bonuses. You can also use it to give you extra time to come up with the cash to pay your bills, but this is dangerous as credit cards charge high rates of interest. This means that people who try to maximize their credit card rewards will get the most value out of Plastiq.
Plastiq’s service is very safe to use. The company has high security standards and keeps all of your personal and credit card information safe.
Plastiq is a useful service that lets you pay your bills by credit card, even if the recipient doesn’t accept credit card payments. If you need a way to meet high minimum spending requirements on rewards credit cards, paying bills like rent with your card is a great way to do so.
Outside of earning credit card rewards, the fees that Plastiq charges and the danger of paying credit card interest make using Plastiq hard to justify when you can pay your bills another way.