Plastiq is a bill-pay service that allows you to pay bills that would otherwise not accept a credit card for payment. Thanks to this service, you can earn miles and points on pretty much any payment you have to make.

The downside is that they charge a 2.5% processing fee, but they occasionally run promos that reduce this fee. Today, they launched a promo for mortgage payments that could reduce the fee to 1.5% if you schedule 3 mortgage payments and pay with a MasterCard.

These are the details from Plastiq:

  • Schedule 3 or more monthly mortgage payments by checking the box next to recurring.
  • Use a Mastercard.
  • Set up the first 3 payments so they are set to process between September 5, 2017 and December 31, 2017 11:59 p.m. EDT.
  • Look for a notification of eligibility on the payment review screen.

This is a great promo as points including Chase Ultimate Rewards, SPG Starponts, American Express Membership Rewards, and Citi ThankYou Points can be worth enough to outweigh the fee. This is not always the case so consider how you would use your points before making a decision.

When the fee is 2.5%, it often outweighs the value of the points you would earn – there are some exceptions to this, but we’ll discuss that another time – unless you are trying to hit the minimum spend requirement to earn a sign-up bonus. If this is the case, it can be tremendously useful.

To top it off, if you sign up for Plastiq with a referral (this is mine!), you will receive 1,000 fee-free dollars (FFD) once you spend $1,000 via Plastiq. What does this mean exactly? Well, once you have earned your 1,000 FFD bonus, the next $1,000 you spend via Plastiq won’t have any fees attached to it.

Personally, I have used Plastiq with my Citi Access More MasterCard – no longer available for application, but you can product change to it from another Citi card – when it was earning 3X points per dollar on my rent payments. Now, the best option for me might be my Blue Business Plus Card from American Express as it earns 2X points per dollar on all purchases (up to $50,000 per calendar year)

Since I can redeem these points for far more than the processing fee, even at 2.5%, this is a decent option for me to earn easy points. I guess if I’m going to pay Washington, DC rent prices, I should really get something out of it!

Since you want to be smart about how you use Plastiq and only use it when it’s a net-positive for you, let’s get straight to the points. The best ways to use Plastiq are as follows:

  • Your first use with a referral during a promotion to hit a minimum spend to earn a sign-up bonus
  • During a promo to hit a minimum spend
  • To hit a minimum spend
  • During a promo to earn valuable miles and points

While using Plastiq won’t always be the right move for you, it can really help you earn enough points for your next big redemption.

If you have any questions about how to get the most out of Plastiq, comment below or email me.

For my friends in Europe, Australia, Hong Kong, Singapore, and otherwise… unfortunately, Plastiq is not supported outside the U.S. and Canada.