Quick Tip: Use Caution When Paying a Bill on Plastiq with a Visa

plastiq cash advance visa

Payment service Plastiq has gained popularity lately thanks to some generous promotions and how easy they make it to pay bills with a credit card. With that said, one recent development may erase any value you receive from Plastiq if you aren’t careful.

Plastiq is now warning customers who plan to use a Visa card for payments, that they may be charged a cash advance fee. If you try to pay a bill where the Payee has no relationship with Plastiq, then some Visa cards can put the payment through as a cash advance.

Visa requires cash advance treatment for credit card payments to recipients who do not yet have a relationship with Plastiq. As such we recommend using a MasterCard, American Express, or Visa debit card for this payment.

More Details from Plastiq

 

  • Anyone that has been paid via Plastiq before is fine to pay with a Visa.
  • Plastiq can set up a relationship with anyone new you want to pay, and then it won’t process as a cash advance (just email Plastiq at team@plastiq.com).
  • It’s not all Visa cards that are coding as a cash advance, it’s actually a limited problem they’re working to resolve, but they’ve giving a warning broadly ‘just in case’.
  • If you don’t get the warning you can be confident your situation won’t involve a cash advance (for instance because they’ve paid the recipient before, etc).

 

Questions?

For more info on Plastiq, see: Complete guide to Plastiq credit card payments

Last updated on December 20th, 2018

About Nick Reyes

Nick Reyes is a (fairly) regular guy with an animalistic passion for maximizing the value of miles and money to travel the world in comfort and style. There is little in life that he loves more than finding a fantastic deal and helping you shop smarter & harder to achieve your travel dreams.

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SteveK
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SteveK

I am paying Ford Credit with Plastiq via Visa card every month. I also paid some legal fees and my property tax. None of them posted as a cash advance.

Mike
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Mike

I thought a cash advance was whatever the credit issuing bank said it was. First I’ve heard of a processing network making that call.

Jeremy
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Jeremy

I also used VISA last month for my mortgage and HOA fees and they all went through as purchases. I also just scheduled a new payee with my rent and have not seen any messages being shown.

Referral link below if anyone needs it. You get $200 fee free dollars after making your first payment of $20 of more. I will get $400 fee free dollars as well. Thanks.

https://try.plastiq.com/509922

HokiE36
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HokiE36

any data point for VISA gift cards, such as vanillaVisa? Thanks

Nicole smith
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Nicole smith

I can’t get plastiq to confirm if they have a relationship with someone. Can I safely assume if I personally as paid that person with plastiq that I can ignore the warning? And do I need to wait for the party to cash the check or is sending it enough to create a relationship?

Daniel
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Daniel