Plastiq No Longer Lets You Pay Your Mortgage With A Visa Card

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Travis has written extensively about Plastiq, which is a bill pay service. The idea is that Plastiq allows you to pay bills that you couldn’t otherwise pay by credit card for a fee. That fee is typically 2.5%, though they frequently have promotions that lower the transaction costs, and they also have a generous referral program.

There are potentially a few areas where this could be most useful. I imagine some value this if they have liquidity issues and have a card with a 0% APR offer and need to pay a bill. But there’s also value in this for miles & points enthusiasts. This can help us reach the minimum spend on credit cards. Beyond that, given how rewarding some cards are, this could also represent a good deal for just trying to pick up points.

In early May, Travis wrote about how some rent payments made with the Chase Sapphire Reserve were apparently coding as travel, and therefore earning triple points. At a fee of 2.5%, for some that was an opportunity to pick up Ultimate Rewards points for ~0.8 cents each.

I didn’t take advantage of this offer myself, though I was certainly intrigued. Typically merchants can choose how they want to be categorized, and I had a hard time imagining that Plastiq would try to “trick” Visa into thinking that they were some sort of a travel company (as much as it would be good for their business short term).

While I can’t guarantee it’s related, Miles to Memories is reporting that Plastiq can no longer accept Visa credit card payments for mortgages, and possibly for other types of transactions as well. It seems like this has kicked in as of this past weekend:

VISA has just informed Plastiq that use of a VISA card for mortgage will no longer be supported via Plastiq and will not process going forward. I’m very sorry for this. only use of another card type such as Mastercard, Amex, Discover or even VISA debit will allow your future mortgage payments to process using Plastiq. We are complying with recent directives from VISA regarding not allowing mortgage payments via use of a VISA card with Plastiq.

So this is something to be aware of if you’ve been using Visa cards for payments through Plastiq. While we don’t officially know the reason for this, I would be surprised if it was unrelated to whatever caused Plastiq purchases to code as “travel.”

If you’ve been using Visa cards for Plastiq payments, you’ll want to keep a close eye on your account, as your Visa payments may get denied.

Comments

  1. plastiq grows more useless by the day. My student loan carrier stopped accepting credit cards so i am having less and less use for credit cards with every passing day.

  2. is this just mortgage, or for rent to a property management group as well? I was thinking about signing up and start making my payments using Plastiq for my July rent payment.

  3. is this just mortgage, or for rent to a property management group as well? I was thinking about signing up and start making my payments using Plastiq for my July rent payment.

    I’m also hoping this codes as travel for my CSR.

  4. Btw I’ve been placing $5 payments to verify if they get 3x rewards using my CSR (before actually posting the complete mortgage payment), but the last one on Jun-11 just posted with 1x reward. It looks like at least for my mortgage provider it isn’t even posting as 3x any more, which makes it even less useful.

  5. Card issuers do not want (nor does the CFPB) want consumers paying debt with debt. I am certain that Mastercard and American Express will follow suit. It was a terrible idea for Plastiq to offer it in the first place.

  6. I was just able to use my CSP for a mortgage payment on Plastiq, and that’s a Visa. I checked my chase account, and it said it was processed as my loan company. Maybe it depends on whether it codes as Plastiq or not?

  7. If card issuers do not want consumers paying debt with debt, why are balance transfers promoted so heavily?

  8. I made my mortgage payment this morning and when I was told I couldn’t use VISA I talk to customer service and they confirmed no VISA for mortgages or rent. I told her their days were numbered and she didn’t disagree with me.

  9. Thanks Steven for the confirmation! We currently rent (makes more sense downtown in a big city) so that’s good to know. Hoping I can still use Amex with them for the July rent though to meet minimum spend.

  10. Plastiq is a real hassle! I have been (trying) to use them to pay our contractor so I could benefit from $75k in spend for a house renovation. They required a contract to start paying then they wanted the contractor to register…I finally got around that but continuously have problems w the payments arriving in a timely manner – if I can’t make the last payment with my visa…I won’t be surprised! The idea is good but the execution is pretty poor –

  11. It was good while it lasted. I netted 45,000 UR points at 0.81 cents a point over the past couple of months. I’m surprised it lasted as long as it did.

  12. @Chris some of us use cards to make these payments to meet signups or earn points etc and then pay the card off right away. Not everyone is “paying debt with debt”

  13. Anastasia yes you can still use AMEX for mortgage or rent so you’ll be able to meet your spend. As of now they’re still able to take AMex, MC, Discover. VISA seems so far to have been the only problem and I’m sure this was pressure from Chase for paying 3X travel points on mortgage payments.

  14. I feel like it has something to do with fraud and forms of laundering. A house is a physical asset. You buy through a real estate agent whom lists the house from a seller. Then you ask the bank to pay off that house with a mortgage and in turn pay that mortgage with credit. That’s a very complicated, but seemingly good way of shifting money around.

    The seller gets money, the bank is the middle man, your creditor gets their money, and you look like you’re simply paying off a credit card or mortgage. I’m not an expert in this field by no means, but I’m sure there’s ways to twist it a little more to use in schemes.

  15. All is not lost fellow mile/point churners 🙂

    I just got done with Plastiq customer service and while VISA is out for mortgages they are still good for anything else. They also confirmed that any other card: Master Card, AMEX, etc. Is still good for mortgage payments. So for now my Citi Prestige will be getting a work out 😉

    Here is a redacted copy of my chat log with support:

    yes, they have recently advised Plastiq that future payments for mortgage using VISA will not be supported.

    any other card works, MC, VISA debit, Amex or Discover

    and this only applies to mortgage with VISA so any other payment types should not be affected

  16. I made a payment with my Chase Visa on June 30th with Plastiq, will they not send the check, the transaction wasnt declined… It says check was sent.

  17. Mastercard just declined my plastiq rent payment after approving it 8 days ago and put the money back in my account.

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