I periodically use Plastiq to pay bills (such as my mortgage and utility bills) that cannot directly be paid with a credit card.
While Plastiq is an easy and convenient way to pay bills using a credit card (and in the process meet credit card minimum spending requirements or manufacture spending), Plastiq charges a fee up to 2.50% of the payment amount. Fortunately, Plastiq has recently introduced a referral program which allows you to earn the ability to make some bill payments with a credit card completely fee-free.
UPDATE: Plastiq has a limited time promotion where you can pay your mortgage with a Mastercard for a lower Plastiq fee of 1.5%.
Plastiq Referral Program
Plastiq has a referral program which can earn you and your friends/family a sign up bonus (ability to make fee-free online bill payments).
For every person who registers with Plastiq via your referral link and makes a payment of at least $500, you’ll get 1,000 FFDs and that person will get 500 FFDs. Fee-free dollars (FFDs) correspond to how much money you can send via Plastiq without any fees. Please note, if you don’t use or earn FFDs for 90 days, your balance will be reset to zero.
If you have not yet signed up for Plastiq, signing up with someone’s referral link is a great way to earn the ability to make $500 of bill payments fee-free. If you do not have a friend/family member to refer you to Plastiq, I would be grateful if you sign up for Plastiq with my referral link and you will earn $500 dollars of fee free bill payments after making a $20 bill payment.
If you already have signed up for Plastiq, you can earn fee free payments if someone signs up using your referral link. One strategy is to make referrals to your family so that you both can maximize fee free payments. (For example, if you are part of a couple, one of you can sign up with the other’s referral link and you will both earn fee-free payments that you can use to pay your bills).
You can find your referral link by logging into your account and clicking on the person icon on the top right corner and then clicking on “Rewards & Referrals”.
After clicking on Rewards & Referrals, you will see how many FFDs you have, if any, and you will find your referral link which you can then share. If someone signs up using your referral link you will receive the fee free payments in your account within a day. You will also receive an e-mail from Plastiq informing you of that fact and also the name of the person who signed up with your link.
What is Plastiq?
For anyone unfamiliar with Plastiq, here is a brief overview. Plastiq.com is a website that allows you to pay bills online with a credit card. Some bills you can pay using a credit card with Plastiq include: mortgage, rent, tuition, taxes, utilities, insurance (but not credit card bills).
According to Plastiq.com, you can “pay any business, institution, or person who has provided a good or service in the US or Canada– even if they don’t accept cards. For example, you can pay your friend for walking your dog, but not for buying you dinner. The recipient of your payment won’t have to register with our service or make any changes to the payment methods they currently accept.”
You will not incur a cash advance fee for using a credit card. Plastiq accepts MasterCard, Visa, Discover and American Express credit cards right now. (Update: You can no longer use Visa or Amex credit cards to pay your mortgage). Plastiq charges up to a 2.50% fee for credit card payments depending on the credit card. The fee is currently less for MasterCard credit cards and in the past there had been some promotions for paying bills with lower fees. You will see the percentage of the fee and the total fee amount before finalizing your payment. If you have earned free free payments you need to click on “Apply my Fee Free Dollars” right under the payment amount.
Plastiq has many businesses in their system which can be paid electronically. If you don’t see the business you need to pay or for individuals, you can add them as a recipient and they will be paid via check payment.
I have read reviews about some people having issues with Plastiq sending payments but I have had no issues. I use Plastiq to pay bills electronically to institutions already in the system so I do not have first hand experience with paying individuals. I have read that Plastiq will sometimes ask for some proof of a service provided so you can’t just send checks to your family members like you can with Bluebird or Serve. If you decide to use Plastiq for the first time, I would recommend making your payment to a new recipient super early to avoid a late payment.
For those of you looking for an easy way to manufacture spending, Plastiq is a good way to do some MS without leaving your house. If you can find people to sign up for Plastiq using your referral link and make a $500 payment, you can earn points/MS for free from home without having to buy gift cards or go to Walmart to load Bluebird or Serve. They too will earn the ability to make some fee free payments so this is a win win.
As mentioned above, this post contains referral links. If you sign up to Plastiq.com with my referral link and make a $500 payment, you will earn a sign up bonus: the ability to pay $500 of bills without a fee and I will earn $1,000 fee-free payments. You are also welcome to leave your own Plastiq referral link in the comments below.
Updated on 4/25/17 to reflect increase of referral bonus from $400/$200 to $1000/$500.