{"id":108325,"date":"2023-05-25T18:00:36","date_gmt":"2023-05-25T18:00:36","guid":{"rendered":"https:\/\/awardwallet.com\/blog\/?p=108325"},"modified":"2025-10-24T15:33:45","modified_gmt":"2025-10-24T15:33:45","slug":"plastiq-bankruptcy","status":"publish","type":"post","link":"https:\/\/awardwallet.com\/news\/plastiq-bankruptcy\/","title":{"rendered":"Plastiq Files for Bankruptcy: What This Means for You"},"content":{"rendered":"

We're big fans of putting all spending possible on credit cards to earn extra points and miles, which we can use for upcoming travels. When you have a bill you can't pay by credit card, third-party services may make that possible (for a fee, of course). One of the biggest of these services is Plastiq<\/a>, a service that we've previously discussed several times on the AwardWallet Blog. However, on May 24, 2023, Plastiq filed for bankruptcy. And as of August 1, 2023, Priority Technology Holdings has completed its acquisition<\/a> of Plastiq.<\/p>\n

If you use Plastiq to pay bills like rent, mortgage, or a car loan, here's what you should know about these bankruptcy proceedings.<\/p>\n

How Plastiq's Bankruptcy Could Affect You<\/span><\/h2>\n

Plastiq previously used Silicon Valley Bank, which failed in March 2023<\/a>, as its bank. This caused a brief interruption in Plastiq's services, though operations have returned to normal \u2014 at least as far as customers could tell. Plastiq's failed plan to go public in 2022 also hadn't affected the customer experience. However, it seems these two experiences combined were too much for the company to handle.<\/p>\n

Now that Plastiq filed for Chapter 11 bankruptcy in a Delaware court (court documents are available here<\/a>), you may wonder how this affects your current and upcoming payments.<\/p>\n

I've used Plastiq each month for several years now. My most recent payment went out on time, and the check cleared. That's a good sign for consumers. However, you should monitor your scheduled payments to ensure they go through as planned. If a payment is late or a check bounces, you may be stuck with late fees or interest penalties.<\/p>\n

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Credit: John Schnobrich\/Unsplash<\/em><\/enter><\/figure>\n

If you want to be safe, you could avoid using Plastiq until this process is resolved, paying directly from your bank account or through other payment providers in the short term.<\/p>\n

When will this process have a resolution? There's no clear answer, but there are indications of what's to come.<\/p>\n

Priority Technology Holdings, Inc. is a stalking horse bidder<\/a> — meaning it's put in an initial low-end bid to acquire Plastiq's assets. Statements from both companies sound like they intend to continue Plastiq's operations without interruptions. That's good news if you use Plastiq. However, things can change as bankruptcy proceedings continue \u2014 as all agreements are subject to court approval.<\/p>\n

Final Thoughts<\/span><\/h2>\n

Plastiq has provided B2B (business-to-business) capital and payment services for customers and small and medium-sized businesses since 2012. In the credit card rewards space, it's most popular for paying bills by credit card when the merchant doesn't accept card payments — like with mortgage payments.<\/p>\n

We will continue to follow this story as bankruptcy proceedings move forward. If it results in changes to Plastiq's services or fee structure, we will update our guide to paying bills with Plastiq<\/a>.<\/p>\n

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