When it comes to the credit card world, outside of the reward categories of a card, the biggest things we tend to look at for each credit card is the sign up bonus. Sometimes sign up bonuses are nice, in the range of requiring you to spend a measly $500 over the course of 3 months. Others require spending on $5,000 or more within 3 months. That task may seem daunting until you realize you may be able to count mortgages, rent payments, or other very large purchases. But those payment processors may not take credit cards, and that’s where a service like Plastiq may come in to help.
Of course, there’s a fee involved by using any sort of service like Plastiq, but depending on the sign up bonus, that fee could very well be worth it. Unfortunately, it looks like Plastiq is making a change to their fee structure.
Outside of all of the promotions you’ll see from time to time, Plastiq generally charges a fee of 2.5% when using a credit card. This fee will now be increased to 2.85% on July 1st 2020. Any charges made before July 1st will be at the reduced 2.5% rate.
The reason for this change, according to Plastiq is the price increase for interchange fees.
This is some pretty unfortunate news. Services like Plastiq can greatly reduce the difficulty in getting a large sign up bonus if you have a large bill to pay that doesn’t normally accept credit cards. While this new increase in fee wont eliminate that use case, it will make it more expensive. Before using the service at all, make sure you do the calculation for any charge you are about to do to ensure that you are still coming out ahead before going through with the charge.
If the fee is increasing because of interchange fees, I would imagine any sort of service like Plastiq will also increase its fee at some point, if they haven’t already done so. Unfortunate news, however, I don’t think it’ll be the end of the world if you are savvy enough.
What do you think about this change to Plastiq? Will you still continue to use them for sign up bonuses at least? Let us know down in the comment section below!