RadPad Sucks, Plastiq Steps Up

There was a bit of a buzz recently when an outfit called RadPad offered to let you pay your rent with a credit card for no fee through the end of the year. The catch, if you can call it that, was that it required you to use Android Pay, meaning that us iPhone users were kind of locked out of the deal. But still, it was an incredible offer given that they usually charge 3.49% for the service. It almost kind of made me wish I was still a renter….

Well, it turns out that RadPad didn’t quite anticipate the amount of excitement they would generate. Apparently they had far more signups for the service than they expected, and worse yet, their payment processor supposedly jacked up the rates for handling the transaction. Talk about getting pounded from all sides. 

So they did what they had to do, and pulled the deal early. Before I could write about it even. But coincidentally, or perhaps not, Plastiq has stepped in with a similar promotion of their own.

plastiq

Pay Your Rent Or Mortgage For A 1.75% Fee

For rent and mortgage payments scheduled between now and September 30th, Plastiq is charging a reduced fee of 1.75% so long as you schedule at least six payments. Note that the payments themselves only need to be scheduled by September 30th, but can actually be for any point in the future.

From the email I received:

plastiq offer

Is This A Good Deal?

There are two categories of situations where this might make sense.

First, if you are trying to meet the minimum spend to trigger a large signup bonus on a newly acquired credit card, it might be worth it to pay the fee so that you can do a big chunk of the spend at once. Just note that the transaction isn’t going to post until the date that it is scheduled for, so if you have four months to meet the minimum spend, only the first four of your scheduled payments would count, not the last two.

The second situation where it makes sense is if you value your points at more than 1.75 cents each. Hopefully that’s obvious by now.

My Experience With Plastiq

I’ve been using Plastiq occasionally for about a year now and have had mostly positive experiences. Early on, they had some serious lags in delivering payments, but that seems to have been corrected for the most part. And even that didn’t really bother me, because the check always got there eventually.

I’ve generally used Plastiq to pay our mortgage, and usually only when I had a few extra gift cards that I needed to liquidate. Earlier this week, for example, I wrote about how OfficeMax and Office Depot were offering a $15 instant rebate on the purchase of $300 or more in Visa gift cards. That basically made the cards free, and in some cases you could even make money on the deal because the instant rebate more than covered the activation fee. Alas, Plastiq is messing with us by only making this offer available when paying with a MasterCard, so these deals aren’t compatible. But you get the idea.

Bottom Line

You can pay your rent or mortgage with Plastiq for a 1.75% fee so long as you schedule at least six payments with a MasterCard by September 30th. Normally the fee is 2.5%, so this represents some real savings.

Is this as good as the RadPad promotion? Of course not. But it’s sustainable, and that’s a good thing.

Will you be taking advantage of this promotion?

Comments

  1. @Travis: Can you additionally use Plastiq to pay a fake rent with a friend just to generate the miles/points or complete a spend requirement?

  2. @Abdul:

    Did you not read the post at all? Travis stated pretty clearly that this promotion only applied to MasterCard payments. V(isa)GCs are obviously not MasterCard, so… 😉

    Of course, liquidating your VGCs to fund your MC CC payment on Plastiq (using the liquidated funds to pay the CC off) is an entirely different matter, and up to you whether you feel comfortable doing that or not.

  3. @Debit I believe if you pay a person directly, they ask for proof, otherwise I believe the payment is rejected

  4. How long does it take for them to deliver the check from time of payment? Would need to know in order to avoid late fees

  5. Great article Travis!

    This would be ideal for anyone that just signed up for the Barclays arrival + card! An easy way to take care of the minimum spend, and you make an additional .35% on the transaction.

    Please use my link if you are new to plastiq. It’s great for minimum spends.

    https://try.plastiq.com/339780

    Thanks!

    Why waste money on things you really don’t need to get a bonus. Use plastiq and pay a 25 dollar fee for every 1k in payments. (Or 17.50 in the promo) the service is frightening at first, but it keeps your mortgage info, and payment is a breeZe after your first transaction. Just place is 10-15 days before it’s due the first time for peace of mind.

  6. Abdul — I’ve been using Plastiq to make extra payment toward principal. So each VGC is just a separate principal payment.

    I don’t think Plastiq themselves can combine multiple VGC’s into one payment. But it might be possible to contact your mortgage company and see if they can combine multiple checks coming from Plastiq into one. Definitely a YMMV.

  7. Malay — Plastiq now provides a date by which they say the payment will arrive. So you can factor that in when doing the scheduling.

  8. I used Plastiq three times to pay rent. None of the three payments ever arrived and I came within one day of missing my minimum spend requirement on my newest Amex card.

    I just canced my Plastiq account earlier this week!

  9. Can you cancel the scheduled payments? Or edit them? I’m moving city soon, so my rent situation will change but I’d like still to take advantage of the deal. Even so, their 2.5% is better than Radpad’s current rate.

  10. Sign up with this code and you’ll get $200 of no fee spending after you spend $20 with them (this will have a fee of fifty cents and be $20 + $0.50 fee). Then you can refer your own friends and for each one who signs up, you get an additional $400 in no fee dollars. Good luck and hope it helps!

    https://try.plastiq.com/533212

    I have had a pretty smooth experience with them so far and have paid about $800 in bills with no issues. Just look out for any notices that let you know it’s a cash advance and pay things with a good margin of time in between when it’s submitted and when it’s due and you shouldn’t have any issues!

  11. When you sign up for Plastiq make sure you use a referral link or code to get the $200 in Fee Free Dollars (FFDs). My code is 533212, just type it into the Rewards and Referrals section and you’ll get 200 FFDs after you make your first $20 payment.

    Here is the Direct Link: https://www.plastiq.com/cardholder_ui/start?referralCode=533212

    If you have any questions or need any advice about Plastiq, just reply to this message. I’ve been using it for my mortgage, utilities, and loans.

    Thanks and I hope you enjoy using Plastiq!

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