Plastiq review 2024: An expensive way to use a credit card (2024)

Plastiq is a payment platform that enables you to pay your bills with a credit card, even ones that don’t typically permit credit card payments. While you may find it easier to pay your bills with Plastiq, the payment processing fee of 2.9% might not be worth the convenience.

Plastiq basics

• Credit card payments fee: 2.9%
• Products for individuals: Plastiq
• Products for small and medium-sized businesses: Plastiq Pay, Plastiq Pay Pro, Plastiq Pay Enterprise, Plastiq Accept, Plastiq Connect, short-term financing up to $750,000

Plastiq review

Plastiq for individuals

Plastiq is a payment platform that lets you pay your bills with a credit card, regardless of the vendor or merchant. Through Plastiq, you can use a credit card to pay your rent, mortgage, utilities, taxes, tuition and more with a credit card.

Plastiq accepts the following cards: Visa, Mastercard, Discover, Diners Club and JCB. it no longer accepts American Express. Note, however, that each card issuer determines what categories of transaction are acceptable via Plastiq and not all types may be eligible.

After linking your card to your account, Plastiq will charge it and then send a payment in a form that the bill collector accepts, whether that’s a check, ACH transfer or wire transfer. According to Plastiq, this service will deal with the mundane task of paying your bills for you.

Plus, charging a rewards credit card means you can accrue credit card points or miles. However, chances are your credit card rewards rate can’t match the 2.9% fee that Plastiq charges to process payments.

And if you don’t pay off your credit card balance in time, you could face hefty interest charges, as well as potentially ding your credit score. Plastiq does offer the option to earn Fee-Free Dollars (FFDs), which you can use to make payments without having to pay a fee.

For instance, you can earn FFDs through promotions or via referrals. However, these FFDs expire after 90 days unless you earn more or use them to make a payment, so you’ll want to keep an eye out on your expiration date.

Plastiq for small- and medium-sized businesses

While Plastiq offers payment services for individuals, it’s primarily a business payment platform that helps small- and medium-sized businesses (SMBs) make and collect payments and process invoices. Plastiq Pay allows SMBs to pay their bills with a credit card, even to vendors that don’t normally accept this type of payment. The fee is also 2.9%.

Along with this Plastiq Pay product, Plastiq also offers Plastiq Accept, which allows businesses to get paid via credit card with no merchant fees. For business owners that want both the Plastiq Pay and Plastiq Accept options, Plastiq offers the more comprehensive Plastiq Connect product. It also offers Pro and Enterprise plans (for a monthly fee), which let you sync up your accounting software and schedule bulk payments.

Finally, Plastiq offers short-term financing options to qualifying business owners. With this option, you’ll get instant access to funds with extended payment terms. These loans come with terms 30, 60 or 90 days and rates from 2.75% to 10.65%.

Note: In May 2023, Plastiq filed for bankruptcy in Delaware under Chapter 11 of the federal bankruptcy code. The company remains operational and is undergoing restructuring, but time will tell about what the future looks like for Plastiq.

Pros

• Lets you make credit card payments to several types of merchants: Plastiq enables you to pay via credit card to vendors and merchants that don’t normally accept credit card payments. You can pay your rent, mortgage, taxes, tuition and other eligible bills with a credit card thanks to the Plastiq payment platform.
• Helps small businesses make and collect credit card payments: Plastiq enables this through its Plastiq Pay, Plastiq Accept and Plastiq Connect products.
• Offers short-term financing to SMBs: SMBs may also appreciate Plastiq’s short-term financing options with extended payment terms. Plastiq offers fast funding for lines up to $100,000 with payment terms up to 90 days. Qualified businesses that undergo an additional review may qualify for up to $750,000.

Cons

• Charges a fee for credit card payments: The 2.9% credit card payment fee is probably higher than any rewards you’d earn by charging your credit card.
• Some restrictions for payments: You can’t use Plastiq to pay for certain debt products, such as credit card payments, or investments. You also can’t use it to send money to individual people. What’s more, you can only make mortgage payments with a Mastercard, Diners Club Card or Discover card.
• Doesn’t accept American Express: As of February 2023, Plastiq no longer lets you connect and pay with an American Express card.

Plastiq fees

Plastiq is right for you if:

• You need a little extra time to gather cash and have plenty of credit available.
• You’re a small business looking to pay vendors with a credit card, even those who wouldn’t normally accept credit cards.
• You’re a small business who’d like to start accepting credit cards for payment.

Frequently asked questions (FAQs)