What is Plastiq?
Plastiq is an online payment platform founded in 2012 that enables users to pay virtually any bill or invoice by using a credit card, debit card, or bank account. Even though many vendors like landlords, mortgage companies, contractors, tuition providers, tax authorities, and more do not typically accept credit card payments, Plastiq facilitates the transactions.
Here's how it works: Users connect their payment accounts like credit cards or bank accounts to their Plastiq account. They enter the billing details of who they need to pay. Plastiq then mails a physical check on the user's behalf or processes an electronic bank transfer (ACH payment). As far as the recipient is concerned, they just see a regular check or bank transfer come through - they don't ever know a credit card was involved.
On the back-end, Plastiq charges your credit card for the payment amount plus a 2.5% processing fee. So users can earn credit card rewards points, airline miles, or cash back bonuses on payments that they couldn't normally charge to a card. This gives customers more flexibility with managing cash flow without missing bill due dates.
Plastiq appeals to small businesses, landlords, contractors, and anyone who has large recurring bills and wants to maximize credit card rewards. It also enables consumers to leverage introductory 0% APR offers. The company has delivered over $12 billion in payments since launch.