Last week, Plastiq launched a new promo that is good through the end of July.
When making a business services payment with a Mastercard, you will only pay a 1.75% fee. This is reduced from the standard 2.5% fee.
Although most people will not be able to take advantage of the promotion, if you can, it can be a great deal.
To take advantage of this promotion, there are a few qualifications you need to meet:
- The recipient of the payment must be in the business services category.
- The payment must be a single payment of at least $20,000.
- You must use a Mastercard to make the payment.
- The payment must be submitted between Monday, July 10, 2017, 12:00 am EDT and Monday, July 31, 2017, 11:59 pm EDT.
- If you are setting a scheduled payment, it must be set to process no later than July 31, 2017.
What is Plastiq?
Plastiq is a service that allows you to pay your bills by credit card, even if the person or business you are paying does not accept credit cards directly. Their mission is to make payments simple and seamless by creating a way to manage and pay all of your bills in a single place.
Some common payments Plastiq is useful for include rent, mortgage payments, contractors, and utility bills. Instead of paying those bills directly, you can pay Plastiq with your credit card and they will send a check on your behalf. This allows you to earn some extra points while the business or individual being paid still receives a check.
At this time, payments can only be made to businesses or individuals in the U.S. or Canada, and the service cannot be used to fund retirement accounts or health savings plans. Additionally, Plastiq recently stopped allowing Visa cards to be used for mortgage payments.
For more details, see our Complete Guide to Plastiq.
When to Use Plastiq
Although Plastiq makes it easy to pay a variety of bills with your credit cards, it is still important to make sure you aren’t paying unnecessary fees just to use your credit card.
You should only use Plastiq in a few situations, all of which will help you get more value in returns than you are paying in fees.
Earn a Sign-up Bonus
If you need to meet the minimum spend to earn a sign-up bonus, paying some of your bills through Plastiq is a good way to make sure you don’t miss out on the bonus. A 50,000- or 100,000-point bonus can easily offset the small processing fee.
Earn a Big Spend Bonus
Some credit cards will give you an additional bonus (like the lucrative Southwest Companion Pass or elite status) for hitting a certain spending threshold during either a calendar year or your cardmember year.
The spending requirements for these bonuses are usually quite high, and Plastiq can help you meet that threshold. The fee can easily be outweighed by the benefits you’ll earn.
Earn Valuable Points
Some points you can earn with credit cards may be more valuable to you than the fee you are paying. One example of that would be using a card that earns 2X or 3X points per dollar.
Assuming that those points are worth at least a 1 cent each, earning 2X or 3X points per dollar will be worth more than a 1.75% or 2.5% fee. This could also make sense if you value the points you are earning at more than 1 cent each.
This promotion will only be useful for a small number of people since the payment size is so large. However, if you are in a position to make qualifying business services payments through Plastiq to utilize the 1.75% promo fee, you could get a ton of value out of this opportunity.
If you do need to make a payment of $20,000+ to a qualifying business, you could earn a ton of points!