What is Plastiq and how Does It Work? Advertiser disclosure You’re our first priority. Everytime. We believe that everyone should be able to make sound financial decisions with confidence. Although our website does not contain every financial institution or product available on the market however, we’re confident of the advice we provide, the information we provide and the tools we develop are objective, independent easy to use and cost-free. So how do we make money? Our partners compensate us. This may influence which products we write about (and the way they appear on the website), but it in no way affects our suggestions or recommendations that are based on thousands of hours of study. Our partners are not able to promise us favorable review of their services or products. . What is Plastiq and How Does It Work? For a cost, Plastiq lets you use credit or debit cards to pay bills which don’t normally accept credit cards for payment. This article was written by Melissa Lambarena Lead Writer | Credit cards and debt Melissa Lambarena is a lead writer for the credit card team of NerdWallet. She has been a passionate writer covering credit card related topics for more than six years. Her previous experiences include nine years of experience as an author for various websites and magazines. With her efforts, she strives to help users extract the value of credit cards to help them achieve financial goals such as stretching their budget, building credit, traveling to their dream destinations, and paying off debt. She has a look at these issues as well as others in the Millennial Money column featured in The Associated Press. Her writing has also been featured in The New York Times, Chicago Tribune, The Washington Post, USA Today and Yahoo Finance, among others. Melissa has a bachelor’s level degree in sociology at the University of California, Los Angeles. December 1 2022 Edited by Kenley Young Assigning Editor Credit score, credit cards Kenley Young oversees the daily credit card coverage for NerdWallet. Previously, he was an editor on the homepage as well as a digital content producer for Fox Sports, and before that , a front page editor for Yahoo. He has a wealth of experience in digital and print media, including stints as an editor at the copy desk as well as a wire editor as well as metro editor at the McClatchy Newspaper chain. Email:

. A majority or all of the items featured here come from our partners who compensate us. This influences which products we review as well as the place and way the product appears on a page. However, this does not affect our assessments. Our opinions are our own. Here’s a list of and . is a service that lets customers and businesses use debit or credit cards to make payments to vendors that do not normally accept payment methods. For this ease, Plastiq charges you a processing fee that can be costly — in December 2022 . Also, if you’re using a credit/debit card and can’t pay those bills every month then you’ll be charged interest at whatever ongoing rate your card charges. If you’re in need of breathing room as you wait for your paycheck or windfall to be received, Plastiq could be cheaper than a high-interest option like or, assuming that you’re able to pay it promptly, especially when you have a rewards credit card that can help pay for the processing fees. More: Plastiq: The basics Plastiq facilitates one-time or recurring payments for bills such as , mortgage and utilities, daycare homeowner association fees, and other costs. It is possible to add a debit card or credit/debit card in your Plastiq account and charge it in to the value of your charge, then Plastiq makes the payment to the company on your behalf through the method the vendor will accept: or a traditional paper check. (Checks are, for example, are read to the seller as being from you, not through Plastiq.) The recipient does not need a Plastiq account to accept payments. ” Plastiq is a service that lets individuals and businesses make use of credit and debit cards to pay vendors that don’t otherwise accept those payment methods. ” Plastiq generally charges a 2.9 per cent fee for debit and credit cards. The terms and conditions apply. The service works with: Visa. Mastercard. American Express. Discover. . However, certain credit cards are restricted in the kind of bills that you can pay using Plastiq. For instance, Visa and American Express cannot be used to make mortgage payments using Bill Pay. . Additionally, Chase recently unveiled a and it’s not clear what consequences that may have for transactions made with a Chase card through Plastiq. The process begins by opening a free account on Plastiq and adding your debit or credit card details. You can add more cards and choose one to be your default. Also, you’ll need to add recipients. This includes the name of the vendor and their country. The information you provide will be stored in your account for later use. ” Checks typically take eight days to arrive, according to Plastiq’s website and you should include some extra time in your calendar to avoid making payments on time. ” To make payments, you must select who you want to pay, how much owed and the preferred payment method (ACH wire transfer, wire transfer, or check) and a date for the money to be received. You may also need specific details regarding the amount you’re paying such as, for instance the loan reference number to pay for your mortgage, a unit number for rent due for an apartment, or any other. It is possible to add additional details within the “memo” area. You can either make a single payment, or set it up to automatically repeat. If the recipient accepts only cheques via postal mail, you might need to make the payment earlier than usual. The average time for checks is eight days to arrive, according to Plastiq’s website Therefore, you should include space on your calendar to avoid having to pay late. Plastiq gives the breakdown of fees, which are in the form of dollars as well as a percentage rate in the screen for reviewing payments prior to completing the transaction. After you have instructed Plastiq to process the payment, you’ll get multiple emails from the business along the way, including a confirmation of the initial transaction, as well as a notification that a check has been physically sent to the seller for the payment and a message once the beneficiary cashes it. (If there is a reason why your payment isn’t accepted, Plastiq will notify you.) Nerdy Tip Certain credit cards might not be compatible with third-party bill payment services. Before you use one, make sure to review the terms and conditions, or inquire with the issuer about how (or whether) the payment will be handled. It may be regarded as an advance in cash instead of an actual purchase. Plastiq states that it alerts customers and blocks payments before they are processed as cash advances. The cost for debit cards The helpfulness of using a debit card through Plastiq is limited. There’s a 2.9 processing fees of 3 that you’d be able to be able to avoid by writing your personal check to the vendor. (Plastiq initially charged just 1% on debit cards, however, it raised the fee to the same level as credit cards on March 20, 2022.) If you’re not a fan of having to order personal checks, purchase stamps, visit the post office, etc., then Plastiq cuts out those nitty-gritty costs for you. However, be sure to utilize the service only if it doesn’t expose you to the risk of overdrawing your account. For credit cards Credit cards can be an intriguing option as, in effect, Plastiq lets you pay off bills prior to having the cash available. And floating yourself the money with a credit card this way could be a cheaper alternative to other options such as cash advances. ” Floating yourself the money using credit card in this manner could be a less costly alternative to other alternatives like cash advances. However, it’s not without cost or risk. ” However, it’s not risk-free or free of cost. First of all the 2.9 percent processing cost might seem like a lot however, in the event that you use Plastiq to make a check for $2,000 in rent and you add $58 to the total. A reward card that earns say, can reduce that cost, but you’ll hard-pressed to dodge it entirely unless you are collecting some kind of sign-up bonus through the spending. In addition, if you cannot be able to pay for the $2,058 amount in the course of your credit card’s bill cycle, you’ll get penalized by the card’s continuous interest rate — and rewards cards typically have the most high annual percentage rates of all with some exceeding 20%. >> MORE Information: A Nerdy Tip Your credit card can give you some time to prevent you from incurring interest. The grace period is the window of time between the close each billing cycle until when your payment is due. Grace periods don’t apply to cash advances made by credit cards however, they may be applicable to a payment service such as Plastiq. Remember, however, that in the event that you are carrying an outstanding balance, your credit card issuer will end the grace period. The bottom line, Plastiq is a service best used strategically. It’s a great way to hold in cash reserves when you’re in need of to use them in the short-term and is relatively inexpensive when compared to other options for cash in a hurry. However, making use of it to pay for charges you cannot pay for in the first place is expensive and insufferable when the revolving interest on credit cards kicks in. The author’s bio: Melissa Lambarena is a credit card writer at NerdWallet. She has had her work covered in The Associated Press, New York Times, Washington Post and USA Today. On a similar note… Choose the perfect credit card for you. If you’re looking to lower your interest rate or earn higher rewards, the perfect card is out there. Just answer a few concerns and we’ll refine down the results for the right card for. Get even deeper into credit Cards Discover more intelligent money moves – direct to your inbox. 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