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Perhaps the easiest and most important thing you can do to maximize points and miles earnings is making all your payments with a credit card. Unfortunately, that is not always possible as some merchants do not accept credit cards.
Some payment types are rarely if ever allowed with credit cards, such as mortgage and car payments. That is when Plastiq becomes an extremely valuable resource as they make paying with a credit card possible in all imaginable instances.
Plastiq allows you to pay every bill, including rent, tuition and electric, with a credit card. They will even allow you to pay a bill just by taking a photo of it with their app. Most importantly, Plastiq can send payments to any business, institution, or person who has provided a good or service in the U.S. or Canada. Recipients do not need to have a Plastiq account.
How Plastiq Works
- Create an account with Plastiq.
- Select a business that’s already in Plastiq's system or choose to add your own.
- Pick a card (American Express, Visa and MasterCard are accepted) and add it to your Plastiq account. You may save as many cards as you want in your Plastiq account profile.
- Enter the amount due and payment date. You cab also set a payment schedule.
- Your payment is guaranteed to arrive on time in the form of a check or bank transfer.
Forms of Merchant Payments
Plastiq can either send a check or process a bank transfer. Bank transfers are sent electronically and typically arrive within 3-5 business days, while checks are sent via standard postal service and should arrive within 5-7 business days.
It is important to take the time it will take for your payment to be received by the merchant under consideration when determining whether sending a payment through Plastiq makes sense and whether it should be sent by check or bank transfer.
If your payment is submitted before the recipient’s specified deadline, but for some reason arrives after the expected delivery time, Plastiq will cover 100% of any late fees incurred on that payment, as long as the expected delivery times is prior to the deadline.
As should be expected, there is a service fee associated with payments sent via Plastiq; after all, they are a business. The standard fee is 2.5% of each transaction, which is lower than what other similar entities charge, such as PayPal, when using a credit card as a funding source for a payment.
On the positive side, Plastiq often runs promotions that bring the service fee down to below 2%. In some rare instances, Plastiq has even removed service fees altogether in the past for utility payments. Most of Plastiq's promotional service fees have required payments with a MasterCard.
What Types of Payments Are Not Allowed?
Plastiq will not allow you to send a payment to yourself or your spouse. They will also not allow any type of payment initiated for the sake of sending money. A legitimate good or service must be provided and Plastiq may request proof of such good or service.
When Should You Use Plastiq?
The most you will have to pay Plastiq in service fees is 2.5%. Therefore, if there is any rewards currency that you value at $0.025 or above, you should use Plastiq for those payments with a credit card that earns that rewards currency.
Plastiq can also help you meet minimum spend requirements more easily. This can be especially helpful when you are running out of time to meet a minimum spend requirement and must still spend a significant amount. Yes, you'll pay a fee, but if you're looking to receive a lucrative bonus it is likely well worth the small transaction fee.
Profiting with Plastiq
One instance in which it can be of great value to send payments with Plastiq is when you can profit from the transaction. This would be the case, for example, if Plastiq was running a promotional service fee of 1.5% on MasterCard payments and you had a MasterCard that earns 2% cash back on all purchases.
In a situation like this one, if you send $5,000.00 in payments with Plastiq you would be paying $75 in service fees to Plastiq but earning $100 from those same payments. By using Plastiq you earned a profit of $25.
Plastiq is an excellent resource that makes credit card payments possible when a merchant does not accept credit cards. By sending payments via Plastiq you earn points, miles, and cash back for transactions that would otherwise not reward you in any way.
While the amount of points you can earn by sending payments through Plastiq is significant, do keep in mind their service fees and consider whether the investment to earn those points makes sense for you.
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