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Payment service Plastiq has gained popularity lately thanks to some generous promotions and how easy they make it to pay bills with a credit card. With that said, one recent development may erase any value you receive from Plastiq if you aren’t careful.
Plastiq is now warning customers who plan to use a Visa card for payments, that they may be charged a cash advance fee. If you try to pay a bill where the Payee has no relationship with Plastiq, then some Visa cards can put the payment through as a cash advance.
Visa requires cash advance treatment for credit card payments to recipients who do not yet have a relationship with Plastiq. As such we recommend using a MasterCard, American Express, or Visa debit card for this payment.
More Details from Plastiq
- Anyone that has been paid via Plastiq before is fine to pay with a Visa.
- Plastiq can set up a relationship with anyone new you want to pay, and then it won’t process as a cash advance (just email Plastiq at team@plastiq.com).
- It’s not all Visa cards that are coding as a cash advance, it’s actually a limited problem they’re working to resolve, but they’ve giving a warning broadly ‘just in case’.
- If you don’t get the warning you can be confident your situation won’t involve a cash advance (for instance because they’ve paid the recipient before, etc).
Questions?
For more info on Plastiq, see: Complete guide to Plastiq credit card payments
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Here is my Plastiq referral code: https://www.plastiq.com/cardholder_ui/start?referralCode=575530&utm_medium=twitter
I can’t get plastiq to confirm if they have a relationship with someone. Can I safely assume if I personally as paid that person with plastiq that I can ignore the warning? And do I need to wait for the party to cash the check or is sending it enough to create a relationship?
any data point for VISA gift cards, such as vanillaVisa? Thanks
I also used VISA last month for my mortgage and HOA fees and they all went through as purchases. I also just scheduled a new payee with my rent and have not seen any messages being shown.
Referral link below if anyone needs it. You get $200 fee free dollars after making your first payment of $20 of more. I will get $400 fee free dollars as well. Thanks.
https://try.plastiq.com/509922
I thought a cash advance was whatever the credit issuing bank said it was. First I’ve heard of a processing network making that call.
I am paying Ford Credit with Plastiq via Visa card every month. I also paid some legal fees and my property tax. None of them posted as a cash advance.