Major Changes for Plastiq Payments Using a Visa

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I’ve written about Plastiq quite a bunch over the past year as it has personally served as a very lucrative way for me to earn points and miles! Related blog posts: Earn Free Points and Miles by Paying Your Bills with PlastiqFor those not familiar with Plastiq, it is a bill payment system where you can use a credit card to make a payment to any merchant. While Plastiq charges a fee there are times when that fee is well worth it (and there are also some promotions where the fee is waived or significantly reduced!). You can sign up for Plastiq here.

Since I’ve written many posts about this service, I wanted to point out two very important changes that just took place. Right now these are temporary changes and Plastiq is working with the credit card issuers, so hopefully it will be fixed soon. The two changes include:

  1. For Chase personal VISA credit cards, payments made through Plastiq may be subject to a lower card limit (typically ~20% of your total card limit). Your transaction should otherwise be treated normally with full rewards.
  2. For personal VISA credit cards that are not issued by Chase or Capital One, payments may be treated as a cash advance, and incur all cash advance-related fees & receive no card rewards.

So this means there is no impact to MasterCard, American Express, Discover, or Visa Business credit card payments. Fortunately, this does not impact those using a MasterCard taking advantage of the current no-fee promotion or those using their Chase Ink Preferred card earning 3x points!

With the first change, this will not impact all payments, it all comes down to your credit limit and the payment amount you are trying to make. For the second change, you absolutely want to make sure to NOT use a card that treats the payment as cash advance. This will ultimately cost you a lot of money and you won’t even earn the points you are ideally trying to earn! You can see a list of most credit cards and whether or not they are impacted here.

While I still recommend using Plastiq when it makes sense, just make sure to use a card that is not impacted and one that will earn you the most points possible!

The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Comments

  1. I like the transparency and honesty. We know you directly profit from these shady businesses and the big cc banks, so we can choose to take your posts related to them with a grain of salt… or venture forward with knowing (or ignoring) the risks.

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