Plastiq Review

ByMichael GrawJan. 06, 2021

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In a Nutshell

Plastiq enables you to pay any bill using your business credit card. Have a vendor that only accepts bank transfers? You can pay with your credit card and Plastiq will send out a check on your behalf. The benefit is that you don’t need to have cash on hand to fund transactions, making cash flow easier. Plastiq charges a 2.85% fee per credit card transaction and 1% per debit card transaction.

pros

  • Use your credit card for every purchase
  • Smooth out cash flow
  • Compatible with most credit cards

cons

  • Fees on every transaction
  • Credit card interest rates applied to unpaid debt

Plastiq at a Glance

Direct lender or marketplaceN/A
Loan TypesCash advance
Loan amountVaries
Repayment termsDetermined by your credit card
APRDetermined by your credit card
Suitable forMaking large purchases

Plastiq Plastiq View Rates

Overview

Plastiq gives you the option to pay for any purchase using your business credit card. If you have a vendor that only accepts bank transfer, check, or wire transfer, you can use Plastiq to put the charge on your credit card and Plastiq will forward the funds using the vendor’s preferred method. Plastiq supports Visa, Mastercard, American Express, and Discover credit and debit cards, including business rewards cards. 

Why Plastiq Is Good For Your Business

The main benefit of using Plastiq is that it enables you to purchase virtually anything on credit, regardless of whether the vendor accepts credit cards as payment. As a result, you can effectively get a cash advance for big purchases so you don’t have to deal with major interruptions to your business’ cash flow. Plastiq also allows you to get rewards for your business’ larger purchases if you use a reward credit card.

Loan Features

Plastiq only serves as an intermediary for your transactions by charging your credit card and forwarding a bank transfer, check, or wire to your vendor. Plastiq itself isn’t a lender - the cash advance you’re getting comes from your credit card company.

So, your purchase is subject to the same interest rates, payment due dates, and other terms as all your other credit card purchases. Plastiq adds a 2.85% transaction processing fee for credit card purchases and a 1% fee for debit card purchases.

  • Pay for anything with a credit card
  • Get a cash advance for just a 2.85% fee
  • 1% fee for debit card transactions
  • APR and terms determined by your credit card company

Application Process

Signing up with Plastiq is fast and easy. Just create a free account online and connect one or more credit cards. If you add multiple cards to Plastiq, you have the option to set one as the default for purchases. The whole process takes around 5 minutes.

How Much Can You Borrow? 

Plastiq doesn’t put any limits on how much you can spend through the service. However, you will be limited by the line of credit you have through your credit card. If you plan to use Plastiq for very large purchases, you may want to contact your credit card company first to ensure the charge won’t be declined.

  • No spending limits from Plastiq
  • Limited to your credit card’s available credit

Repayment Terms

Plastiq simply charges your credit card for your purchases, so the repayment terms are those you agreed to with your credit card company. Typically, you’ll need to pay off your cash advance at the end of the month, or else your credit card’s interest rates and fees will kick in. If you use a business rewards credit card, the APR may be over 20%.

Privacy and Security

Plastiq uses bank-level 256-bit AES encryption to store your credit card information and process transactions. The company is also certified to Payment Card Industry Data Security Standard Level 1, the highest level of security available for payment processing.

Help & Support

Plastiq offers customer support by email or live chat, from 7:00 AM to 5:00 PM PT Monday-Thursday and from 7:00 AM to 4:00 PM PT on Fridays. The Plastiq website also has a detailed online help center where you’ll find more than 100 articles about how to use their service.

Physical Address

Plastiq,

360 9th St, 

San Francisco, CA 94103

Summary

Plastiq enables your business to pay for any purchase with a credit card, regardless of what payment method your vendor requires. That means you can get a cash advance for major purchases, like for equipment, and avoid interruptions to your business’s cash flow.

Plastiq charges a 2.85% transaction processing fee for credit card purchases or 1% for debit card purchases. Your interest, repayment terms, and spending limits are all determined by your credit card company rather than by Plastiq.

Plastiq Plastiq View Rates

Plastiq