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Plastiq for making Car Payments

BrutalBodyShots
Super Contributor

Re: Plastiq for making Car Payments

I used a MC through Plastiq to make a bunch of car payments and mortgage payments.  Never tried a Visa though, although I wouldn't anticipate a difference.

Message 11 of 24
imaximous
Valued Contributor

Re: Plastiq for making Car Payments


@UncleB wrote:

@imaximous wrote:
Anyone tried using the PayPal business debit card using the 2% CB card as a backup?
If my math is right, you'd get 1% back from PayPal debit card (if run as credit) and 2% from the CB card as backup source. That's 0.5% net after Plastiq's 2.5% fee. It doesn't sound like a lot, but if you run your mortgage/rent plus car payments, it's 0.5% of a few thousand bucks.

I'm not too familiar with Plastiq and still reading about it, but I also read that the fee is lowered to 1% if you use a debit card. So, in the example above, it'd be even better. You wouldn't get the 1% back for the debit transaction since it has to be run as credit, but you'd get the full 2% using the PayPal CB card as backup, so it turns out to be 1% net after paying the fee.

Any feedback on my assumption above?

If the Paypal Business debit card is processed as PIN-less debit (which would likely be the case with Plastiq) then there are no cash rewards, and as far as I know it wouldn't trigger backup funding, either.

 

Back when I was in "credit purgatory" I used my Paypal Business debit card almost exclusively, and that's how it worked then.  Things might have changed, though.


Just to satisfy my curiosity, I opened a Plastiq account, and added the PP business debit card. I went through the whole process of making a car payment, and it gave me a 2.5% fee at the end. So they're processing the transaction as credit Smiley Sad 

I was hoping it'd be debit so I could get 1% rather than .5%

AMEX | BofA | Barclays | Cap One | Chase | Citi | Discover | GS | PenFed | SYNCB (PP MC, Lowe's, Amazon, PP Credit) | US Bank
Message 12 of 24
imaximous
Valued Contributor

Re: Plastiq for making Car Payments


@DaveInAZ wrote:

@imaximous wrote:
Anyone tried using the PayPal business debit card using the 2% CB card as a backup?
If my math is right, you'd get 1% back from PayPal debit card (if run as credit) and 2% from the CB card as backup source. That's 0.5% net after Plastiq's 2.5% fee. It doesn't sound like a lot, but if you run your mortgage/rent plus car payments, it's 0.5% of a few thousand bucks.

I'm not too familiar with Plastiq and still reading about it, but I also read that the fee is lowered to 1% if you use a debit card. So, in the example above, it'd be even better. You wouldn't get the 1% back for the debit transaction since it has to be run as credit, but you'd get the full 2% using the PayPal CB card as backup, so it turns out to be 1% net after paying the fee.

Any feedback on my assumption above?

 Yes, I've been using my PayPal business debit card using the 2% CB card as a backup for my mortgage payment for a couple months now. It works, I get 1% from the debit card and 2% on the MC, (Plastic charges the PP Debit as credit, not PIN-less debit). To me it just covers the Platiq fees with a little bit extra. I limit using the PP debit w/2% CB card as I'm concerned if I went crazy using the combo it could raise some red flags with PayPal and/or Synchrony. My mortgage is under $500/mo., and I can't pay my car payment using that combo as my 1/2 point discount with DCU requires online payment from a DCU account. My Plastiq mortgage payment does NOT code as a cash advance, on the PP Debit transaction it is coded as a purchase with Plastiq as the merchant, and the 2% CB MC the transaction is listed as "PyPal Backup funding".

 

When I first added my PP Debit card in Plastiq I used online chat to ask if it would qualify for the 1% fee for debit. I was told that for a debit card to qualify for the 1% fee it has to be a debit card from a "brick & mortar" bank, which to me seems to defeat the purpose of using Plastiq - if I wanted the funds taken immediately from a bank account I'd make an ACH or paper check payment and avoid the 1% fee. With my 2% CB MC billing cycle & mortgage due date I get at least 45 days to PIF and avoid any interest.


Sweet. Just what I wanted to know for confirmation. Instead of just making assumptions, I appreciate the real life transaction.

I think I can make a little extra cash using this method. My mortgage and car payments do add up to a few K a month, so even .5% will earn me some cash for doing the same thing I'd be doing paying directly from my bank. Plus, the billing cycle also works in my favor like you. Thanks!

AMEX | BofA | Barclays | Cap One | Chase | Citi | Discover | GS | PenFed | SYNCB (PP MC, Lowe's, Amazon, PP Credit) | US Bank
Message 13 of 24
UncleB
Moderator

Re: Plastiq for making Car Payments


@DaveInAZ wrote:

@imaximous wrote:
Anyone tried using the PayPal business debit card using the 2% CB card as a backup?
If my math is right, you'd get 1% back from PayPal debit card (if run as credit) and 2% from the CB card as backup source. That's 0.5% net after Plastiq's 2.5% fee. It doesn't sound like a lot, but if you run your mortgage/rent plus car payments, it's 0.5% of a few thousand bucks.

I'm not too familiar with Plastiq and still reading about it, but I also read that the fee is lowered to 1% if you use a debit card. So, in the example above, it'd be even better. You wouldn't get the 1% back for the debit transaction since it has to be run as credit, but you'd get the full 2% using the PayPal CB card as backup, so it turns out to be 1% net after paying the fee.

Any feedback on my assumption above?

 Yes, I've been using my PayPal business debit card using the 2% CB card as a backup for my mortgage payment for a couple months now. It works, I get 1% from the debit card and 2% on the MC, (Plastic charges the PP Debit as credit, not PIN-less debit). To me it just covers the Platiq fees with a little bit extra. I limit using the PP debit w/2% CB card as I'm concerned if I went crazy using the combo it could raise some red flags with PayPal and/or Synchrony. My mortgage is under $500/mo., and I can't pay my car payment using that combo as my 1/2 point discount with DCU requires online payment from a DCU account. My Plastiq mortgage payment does NOT code as a cash advance, on the PP Debit transaction it is coded as a purchase with Plastiq as the merchant, and the 2% CB MC the transaction is listed as "PyPal Backup funding".

 

When I first added my PP Debit card in Plastiq I used online chat to ask if it would qualify for the 1% fee for debit. I was told that for a debit card to qualify for the 1% fee it has to be a debit card from a "brick & mortar" bank, which to me seems to defeat the purpose of using Plastiq - if I wanted the funds taken immediately from a bank account I'd make an ACH or paper check payment and avoid the 1% fee. With my 2% CB MC billing cycle & mortgage due date I get at least 45 days to PIF and avoid any interest.


Great data points here... thanks!  Smiley Happy

Message 14 of 24
oldman87
Valued Contributor

Re: Plastiq for making Car Payments


@BrutalBodyShots wrote:

I used a MC through Plastiq to make a bunch of car payments and mortgage payments.  Never tried a Visa though, although I wouldn't anticipate a difference.


No Visa or Amex for mortgage payments.
Message 15 of 24
Chiclets
Regular Contributor

Re: Plastiq for making Car Payments


@DaveInAZ wrote:

 


 Yes, I've been using my PayPal business debit card using the 2% CB card as a backup for my mortgage payment for a couple months now. It works, 

Interesting.  My car lease can be paid with a debit card (but not a credit card).  I wonder if I can sidestep Plastiq altogether and just use PayPal Debit with a back up card where I am trying to earn a SUB . . . 

Message 16 of 24
imaximous
Valued Contributor

Re: Plastiq for making Car Payments


@Chiclets wrote:

@DaveInAZ wrote:

 


 Yes, I've been using my PayPal business debit card using the 2% CB card as a backup for my mortgage payment for a couple months now. It works, 

Interesting.  My car lease can be paid with a debit card (but not a credit card).  I wonder if I can sidestep Plastiq altogether and just use PayPal Debit with a back up card where I am trying to earn a SUB . . . 


PP Debit won't let you add any other credit cards as back up except PP credit card. It'd be wonderful if you could do that.

AMEX | BofA | Barclays | Cap One | Chase | Citi | Discover | GS | PenFed | SYNCB (PP MC, Lowe's, Amazon, PP Credit) | US Bank
Message 17 of 24
Chiclets
Regular Contributor

Re: Plastiq for making Car Payments


@imaximous wrote:

@Chiclets wrote:

@DaveInAZ wrote:

 


 Yes, I've been using my PayPal business debit card using the 2% CB card as a backup for my mortgage payment for a couple months now. It works, 

Interesting.  My car lease can be paid with a debit card (but not a credit card).  I wonder if I can sidestep Plastiq altogether and just use PayPal Debit with a back up card where I am trying to earn a SUB . . . 


PP Debit won't let you add any other credit cards as back up except PP credit card. It'd be wonderful if you could do that.


Hmmm.  But it works if Plastiq charges the PP Debit as a credit card?  I'm confused.

 

EDIT.  Now I see. PayPal offers its own 2% credit card.  

Message 18 of 24
Bluefooted
Frequent Contributor

Re: Plastiq for making Car Payments

I use my IHG Mastercard every month to pay both of my car notes and my personal loan at my local credit union.
My credit union does not accept Visa for any type of loan payments and the IHG is the only Mastercard credit card that I have at the present time.
Works for me and still gets me points.


Dont wait for it to happen, Make it happen !
Message 19 of 24
longtimelurker
Mega Contributor

Re: Plastiq for making Car Payments


@DaveInAZ wrote: 

When I first added my PP Debit card in Plastiq I used online chat to ask if it would qualify for the 1% fee for debit. I was told that for a debit card to qualify for the 1% fee it has to be a debit card from a "brick & mortar" bank, which to me seems to defeat the purpose of using Plastiq - if I wanted the funds taken immediately from a bank account I'd make an ACH or paper check payment and avoid the 1% fee. With my 2% CB MC billing cycle & mortgage due date I get at least 45 days to PIF and avoid any interest.


My guess is that "brick&mortar" really means "No gift cards"     as I doubt plastiq can have a list of what banks have a physical location  (many internet banks do have one or so offices somewhere in the US, but you are not expected to use them!)

Message 20 of 24
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