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If you’ve been using – or were planning to use – a Visa card with Plastiq, there are some important changes effective from June 1 that you need to be aware of.
- Payments using personal Visa cards issued by Chase will be subject to a lower limit of 20% of your credit limit.
- Payments using personal Visa cards from other issuers (other than Capital One) will code as a cash advance. That means you’d incur cash advance fees and wouldn’t earn any credit card rewards.
There are still some Visa cards that will be unaffected by these changes:
- Capital One personal Visa cards.
- Visa business credit cards.
- Visa corporate, debit and prepaid gift cards.
Plastiq has advised that they’ll be contacting any customers with scheduled payments who’d planned on using a Visa card. They’re also advising that this is a temporary situation and that they’re working with Visa to ensure this isn’t an ongoing issue.
In the meantime, be careful with which type of Visa credit card you use for Plastiq payments. To check if you’ll be affected, they’ve produced this helpful guide listing most of the main Visa credit cards you might possibly use.
You can currently get fee-free Plastiq payments up to $250 when using a Mastercard and paying with Masterpass, so that’s a cheaper – and potentially safer – option.
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[…] this is indeed a temporary issue. Interestingly, when there were temporary restrictions put on payments via personal Visa cards last year (since resolved), Capital One Visa cards were not affected. I’m not sure that there […]
[…] last point isn’t so much a disadvantage as a word of caution. Since June 2018, Visa hasn’t worked with Plastiq for consumer cards. Visa will treat the Plastiq charge as a cash advance, subjecting you to cash […]
[…] last point isn’t so much a disadvantage as a word of caution. Since June 2018, Visa hasn’t worked with Plastiq for consumer cards. Visa will treat the Plastiq charge as a cash advance, subjecting you to cash […]
Have not been able to use Metabank Visa Gift Card, declined on Plastiq and called VGC to be told it is considered financial services (cash advance?) Mastercard still works via Masterpass
Hi there. I have a question. I want to use my hyatt card through plastiq to make a payment. This is what it says on plasiq site fir using hyatt card. Payments made through Plastiq may be subject to a lower cash advance limit (typically ~20% of your total card limit). Your transaction will otherwise be treated with full rewards, and not incur any additional fees.”
Could you please tell what this mean? Will my transaction will be count as cash advance?
Thanks
Let’s say your credit limit is $10,000. It means you could send a $2,000 payment via Plastiq as that’s 20% of your credit limit. If you were to try sending more than that, I think it’d code as a cash advance and so you’d incur additional fees, interest, etc. and not earn any rewards.
I had two charges on Plastiq for a total of $1000 being charged to a single VISA card. The credit limit is $28000. Both charges were halted, even though I am way below 20% of credit line. I changed each over to Mastercard
What does “Lower credit limit” mean exactly?
Do you mean for Chase personal cards? If so, let’s say your credit limit is $10,000 – the lower limit of 20% of your credit line would mean you’d only be able to send $2,000 rather than $10,000.
Ohh! Thanks!
[…] no annual fee cards without foreign transaction fees but their Visa cards are not subject to the recent Visa restrictions on Plastiq. This means that if you have a Capital One card, you’ll be able to use Plastiq to pay for […]
[…] incur a cash advance fee when paying with a personal Visa card. See his post for more details (Plastiq Changes For Visa Transactions: Lower Limits Or Cash Advances). In that post, Stephen notes that Plastiq will reach out to customers with affected payments. It […]
[…] Beware of Plastiq changes! I still have not opened the account, their salesman is still going after me… […]
Is visa business includes “small business”
Yes, it would. You can double check your card using the link in the post to make sure.
Has anyone of you tried the Alliant Visa Card?