1% fee on Plastiq payments made with MasterCard: Worth it?

Plastiq is offering targeted customers a 1% fee on payments made with a MasterCard. Targeted users qualify for this lower rate if they schedule three payments of up to $2,000 each. Payments must be scheduled by May 31, giving you plenty of time to take advantage of this.

A few readers have emailed me, wondering if this promotion is worth it and that depends on a few factors. Let’s a take a deeper look into the promo details, fees, and alternatives:

Promo Details

This particular offer was sent to my sister, who hasn’t made payments with her Plastiq account in a few months. Below are the details, sent via email:

Schedule a single recurring payment series with a minimum of three payments (up to $2,000 each) with your Mastercard credit card and benefit from a 1.0% Plastiq fee – up to a $90 value. This offer is good for one recurring payment series.

Keep in mind:

1. Three (or more) payments need to be scheduled as a single recurring payment series. If you schedule three separate payments, the promotion rate will not apply to any of the payments.
2. Only the first three payments in a series are eligible for a 1.0 % Plastiq fee.
3. The last payment in a series needs to be processed by August 31, 2019.
4. Submit your scheduled payments by May 31, 2019 to qualify for this exclusive offer.
5. Promotion can only be redeemed once per account and it is non-transferable

Bills You Can Pay with Plastiq

Most of us use Plastic to pay rent, mortgage, or other bills that can’t be paid with a credit card. Plastiq only accepts MasterCard for mortgage payments. That works out pretty great for this promotion, since mortgage payments are a big expense for a lot of people.

Plastiq Fee-Free Dollars

Plastiq normally charges a 2.5% fee, which is quite high if you’re just trying to earn some extra points. So the 1% promotional fee is a no-brainer, right? Not exactly, since you can’t apply Fee-Free Dollars to your payments under this promotion.

Fee-Free Dollars are credits you earn by referring your friends to Plastiq. Every 1,000 Fee-Free Dollars equates to $1,000 worth of payments you can make without incurring fees.

At the moment, Plastiq users can earn 1,000 Fee-Free Dollars for every friend who signs up and makes $500 worth of payments. Friends, in turn, can earn 500 Fee-Free Dollars after the $500 payment has been made.

If you have a stash of Fee-Free Dollars expiring soon, it makes sense to apply those towards a 2.5% fee than to incur a 1% fee out of pocket by taking advantage of this MasterCard promotion.

What if I Don’t Have Any FFD’s?

If you don’t have any Fee-Free Dollars, then Plastiq’s 1% MasterCard fee promotion could make sense for you. Especially if you’re looking for a hassle-free way to generate some extra points or if you’re trying to meet credit card spending requirements on a MasterCard.

I’m personally making a habit of completing credit card sign-up bonuses without manufactured spending. At the moment, American Express is the only bank to worry about in this regard, but I’d rather play it safe and stay ahead of a possible policy change other banks may implement. So I would absolutely use this opportunity to quickly knock out the spending requirement on a MasterCard. 

Is It Worth it?

While paying a 1% fee is a good compromise for completing a spending requirement hassle-free, there are cheaper alternatives. For example, I regularly order Visa gift cards from GiftCardMall, which costs me $2.85 per $1,500 after factoring in cash back earned from shopping portals. That’s just 0.19% – significantly less than the fees imposed by Plastiq.

But again, not everyone can liquidate these Visa gift cards, in which case paying a 1% fee might make sense. If you utilize your points for high-value redemptions (i.e. Flying First Class), 1% in fees isn’t a huge amount to pay in order to secure a flatbed seat.

Ultimately, whether Plastiq’s 1% MasterCard fee promotion is a good deal depends on whether this is your only option or not.

Have you been targeted for Plastiq’s 1% MasterCard fee promotion? Do you plan on taking advantage of this offer?