Plastiq - New Manufactured Spending Method for Credit Cards

[kpd905]

Manufactured spending to hit credit card sign up bonuses has gotten a bit more difficult with the end of both Amazon Payments and online Amex Serve loads. 

A new site called Plastiq allows you to pay toward utilities, loans, mortgages and possibly even credit cards.  They will mail a check to the business or complete the transaction online.  They do, however, charge a 2.5% fee for doing so.

The 2.5% fee might sound like a deal breaker, since most cards max out at 2% back on your spending.  For this reason, this service is best used to hit sign up bonuses that would be otherwise unattainable at your current spending levels.

For example:

Barclays Arrival - Spend $3000 in 3 months
Pay $75 in Plastiq fees
Get $440 in credit toward any travel purchase
= $365 profit if used toward travel

or

Chase Sapphire Preferred - Spend $4000 in 3 months
Pay $100 in Plastiq fees
Get $450 (extra $50 for adding authorized user)
= $350 profit

You can always use the service for only the spending you cannot otherwise hit, dropping the fees you will pay.  So maybe you can only hit $2000 of spending in 3 months, so you just use Plastiq for $1000 worth.

So far I made an account last night and sent a $100 payment to my student loans.  I did a small amount just to make sure that it actually gets there (they are mailing it) and that I don't get charged a cash advance fee.

For more info, check out this article: http://www.doctorofcredit.com/new-option-for-paying-rent-tuition-more-via-credit-card/

[nanu]

More options is always good, but personally I would just buy American Express gift cards online ( > 1.5% fee for a $1000 GC, and even less for larger denominations).
You can even get cashback from cashback portals to offset the fee (or even make a small profit) - right now the best rate is 1.5% back, but it usually goes to 2% for a day or two about once a month.
Then you can use those Amex GC instead of your credit card until they are depleted, thus allowing you to hit any sign up bonus you want (of course, you'll have to float the money for a while, though by going the Amex GC -> Visa GC -> Redbird -> bank account route, you don't even have to do that for too long, but that's more of a hassle).

[kpd905]

Then you can use those Amex GC instead of your credit card until they are depleted, thus allowing you to hit any sign up bonus you want (of course, you'll have to float the money for a while, though by going the Amex GC -> Visa GC -> Redbird -> bank account route, you don't even have to do that for too long, but that's more of a hassle).

I haven't gotten into the Amex GC route.  Basically I've gotten lazy and I've just done what I can do from home.

I have a Serve card, but no Redbird, so I'm not sure about unloading all of the Amex GCs.


I am happy to take the hit of the fee if it means I don't have to leave my house to get the bonus.  Sign up for the card, activate it, spend 5 minutes making a payment, and you are done with that card.  So $300+ tax free for probably 30 minutes total.  Pretty solid.

[kpd905]

Just checked and my $100 payment posted as a purchase, not a cash advance.  And this was with a Citi card.  If any bank would hit you with a cash advance fee for something, it would be them.

[nanu]

I haven't gotten into the Amex GC route.  Basically I've gotten lazy and I've just done what I can do from home.

I have a Serve card, but no Redbird, so I'm not sure about unloading all of the Amex GCs

Fair enough, though as I said, you can unload the Amex GCs slowly over time simply by putting your normal everyday spend on them until they're empty.

Just checked and my $100 payment posted as a purchase, not a cash advance.  And this was with a Citi card.  If any bank would hit you with a cash advance fee for something, it would be them.

True, but seems to be slightly less true than it was (which is good): http://www.doctorofcredit.com/its-time-we-reevaluate-citi-and-their-cash-advance-policy/