Plastiq Bill-Payment Service Increases Processing Fees

The service still lets you use credit cards to pay bills that don't normally take cards, but the fee hike makes it harder to offset the cost with rewards.
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Written by Kenley Young
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Plastiq Bill-Payment Service Increases Credit Card Fee to 2.85%

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UPDATE Dec. 1, 2022: Plastiq's processing fee for both credit cards and debit cards is now 2.9%. Below is our article from July 2020, when Plastiq raised the fee for credit card transactions to 2.85% (from the previous 2.5%). In March 2022, the fee for debit card transactions was raised to a matching 2.85% (from the previous 1%). Fees for both were then bumped to 2.9% in December 2022.


Payments company Plastiq, which allows you to use credit cards to pay bills that don't normally accept cards, is raising its processing fee for most payments by about 14%.

As of July 1, 2020, Plastiq customers can make one-time or recurring payments for bills like mortgages, rent, day care and more for a fee of 2.85% of the transaction amount. Previously, the fee was 2.5%.

In an announcement sent to customers, Plastiq cited increases in credit card interchange fees as a reason. Interchange fees, which are paid by merchants that accept credit cards, are one of the ways card issuers make money.

"Recently, several major credit card companies announced an upcoming interchange price increase (the cost of processing a credit card), which directly impacts our costs at Plastiq," the company said in the email. "This third-party increase requires our fees to move to 2.85%, effective July 1, 2020, for most transactions."

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Plastiq works by charging your card in the amount of the bill (plus the processing fee), and then paying the bill recipient on your behalf, via either electronic payment or paper check in your name. The receiving party does not need a Plastiq account to accept payments.

Plastiq also lets you use debit cards to pay bills. The processing fee for those payments remains unchanged at 1%.

Many credit cards earn rewards that can at least partially offset Plastiq's processing fee. But the increase makes the fee harder to make up completely unless your spending helps you earn a credit card sign-up bonus.

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