Why Does Plastiq Charge a Fee?
Many merchants choose to NOT accept credit or debit cards, usually because it doesnâ€™t make sense for them to pay the transaction fees associated with doing so. While your favorite restaurant might see fewer diners if they donâ€™t accept cards, other businesses like landlords, insurers, schools, and contractors donâ€™t have strong reasons to make payments convenient â€” after all, itâ€™s unlikely that you will reject an apartment or school just because they donâ€™t accept cards! These payments also tend to be some of the largest payments that any of us will make on a monthly or yearly basis.
Plastiqâ€™s mission is to provide you the option of making virtually any bill payment using your card. To fulfill this mission, weâ€™ve set up with the card networks to process your cards, and weâ€™ve plugged into the banking systems to send your payments out via bank transfer or physical check. Plastiq gets charged transaction fees for every payment, which we negotiate to industry-low rates and then pass onto you as a cost of using our service.
The Value of Cards
Rewards: For most customers, the fee we charge is largely offset by the value in rewards that they earn by putting payments on card.
Access to Credit: Using your credit card can help you deal with unexpected expenses or buy extra time to move your money around.
Security: Cards offer additional protection and security over other payment methods, backed by the authority of your issuing bank.