Plastiq makes it possible to pay most bills using your credit card, including those bills that typically require you to write a cheque or set up pre-authorized debits.
Paying your utility bills, rent, taxes, mortgage, insurance or tuition using a credit card means you can earn more rewards points and cash back when you spend.
That said, the service offered by Plastiq does not come cheap and its standard 2.85% processing fee can easily outweigh any benefits you hope to gain.
This Plastiq review covers how it works, fees, competitors, pros, cons, and whether it is legit.
What is Plastiq?
Plastiq is a third-party payment processing platform that allows you to pay for most bills using your credit or debit card. It is especially useful in scenarios where a vendor or service provider does not accept card payments.
You pay Plastiq using your credit card, and it pays them using their accepted means of payment e.g., cheque, wire, or ACH.
Plastiq was founded in 2012 and has been used by more than 1 million people to make over $2 billion in payments.
How it Works?
You can create an account for free and enter your card details.
Add any recipients you want to pay, their location, business phone number, email, payment method amount, and other necessary details.
If you are going to be making payments to a recipient more than once, you can set up recurring payments and enjoy Plastiq’s Delivery Guarantee.
Plastiq supports payments in about 40 countries and 20+ local currencies. There are no daily transaction limits.
You should note that a wire transfer fee of $60 may apply to global payments in addition to the standard transaction fee.
The debit/credit card types you can use for payments include American Express, Discover, Visa, and Mastercard.
Related: Best Prepaid Credit Cards in Canada.
What Can You Pay With Plastiq?
You can use Plastiq to pay the following:
- Utilities (water, gas, electricity, and internet)
- Car payments
- Taxes (property and income tax)
- Mobile phone plans
- Rent or mortgage and more
If you are a business owner, you can also use it to process international payments to your suppliers.
For tax payments to the Canada Revenue Agency, you can use Plastiq to pay your T1 and T2 return, payroll deduction, excise tax, excise duty, GST/HST, withholding tax for non-residents, and more.
There may be restrictions on the kinds of payments you can make using a card type.
For example, American Express cards are not accepted for mortgages, student loans, and automobile payments. Also, personal prepaid debit card payments are not supported.
Confirm how long it will take for Plastiq to process your payment so you can avoid late payment fees charged by the recipient.
Cheques take up to 8 business days, and EFTs, ACH and bank transfers take 3 business days in Canada and the U.S.
If your Plastiq account is verified, you may be able to access accelerated payments at an extra fee.
Plastiq has a 2.85% fee when you use your card to make a payment. So if you paid a $1,000 bill, your total fee is $28.50, for a total payment of $1,028.50.
Additional fees may be incurred if your recipient is in a different country and for expedited payments.
Payments to the CRA in Canada attract a lower 2.50% fee.
The fee for payments using U.S. issued debit cards is 1%.
Is Plastiq Legit?
Plastiq is a legitimate company that has been in business since 2012.
It has an A+ rating on the Better Business Bureau where it has been accredited since 2015.
On TrustPilot, the business has a 3.7/5 review rating from users.
As per its website, Plastiq uses bank-grade security to protect your personal information, including AES 256-bit encryption.
Related: Best Credit Cards for Gas.
Pros and Cons of Plastiq
If you need to make a bill payment when you are out of cash, Plastiq makes it possible to use your credit card in the meantime and avoid late payment penalties.
Note that you will need to pay off your credit balance before it is due or you will be hit with additional interest fees that may be up to 20% per year.
This service may also be useful if you are trying to reach the minimum spending requirement on a credit card promotion that far outweighs the cost of using Plastiq (i.e. > 2.85% rewards).
Since these sorts of deals are few and far between (especially in Canada), this value proposition is not as attractive.
On the flip side, Plastiq payments come with a 2.85% fee, this alone makes it a ‘no’ for me. There are barely any cards in Canada with loyalty programs good enough to justify with Plastiq as a means for racking up rewards.
Also, it may take a while for your bill to be processed. Keep this in mind or you may be dinged for late payments by the recipient.
Plastiq Referral Program
Plastiq has a referral program in which it rewards you for inviting friends to use the platform.
When they sign up using your referral code or link and make a payment (s) totalling $500, you receive 100 Fee-Free Dollars (FFDs).
Fee-Free Dollars are credits you can use to lower your Plastiq fee. For example, if you have $500 FFDs and need to make a $500 payment using Plastiq, your fee is waived.
The two main competitors of Plastiq in Canada are PaySimply and Paytm.
PaySimply has a 2.50% fee and allows you to make payments to thousands of billers using your preferred payment method.
It accepts Visa, Mastercard, and American Express credit cards.
Paytm is an app that gives you rewards when you pay your bills using a credit card, cash, or debit card.
Its fees on credit card payments range from 2%-3%. Learn more about the platform in this Paytm review.
The standard fee for making payments with Plastiq? The standard fee for making payments with Plastiq is 2.85% for credit cards and 1% for debit cards. In addition to these fees, you may also have to pay cross-border fees and fees for faster processing times.
You can make some mortgage payments using a Mastercard or Discover credit card. American Express and Visa cards cannot be used to pay off your mortgage loan.
You can not pay yourself as a recipient using Plastiq.
Have you tried Plastiq? Let us know about your experience in the comments below.
Plastiq Review 2021
Plastiq allows you to pay all kinds of bills and mortgages using your credit card. This Plastiq review covers its fees, competitors, pros, cons, and whether it is legit.