Plastiq has a new 1.5% promo rate (standard fee is 2.5%) if you schedule 3 or more mortgage payments with your Mastercard by end of this 2017. You must pay the standard 2.5% first, and then discount will come in the form of a rebate check sent by January 5, 2018. The check will be sent to the name and billing address associated with your Mastercard used for the promotion. Max rebate is $200. Their instructions:
- 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.
Here are some ways that this promo may be useful…
Sign-up bonus spending requirements. Sign-up bonuses on credit cards usually have spending requirements. For example, you might get a $500 value bonus but need to spend $3,000. Well, that’s effectively 16.7% back so if you need a little help to get over that hurdle, it’s okay to pay a 1.5% fee.
2% cash back credit cards, or similar. If you have a rewards credit card that offers 2% cash back (or equivalent value in points), then you can still make a slight profit by putting them on your credit card. A current example is the Citi Double Cash Card. For example, if you have a mortgage bill of $5,000 and you earned 2% cash back while paying a 1.5% fee, your net 0.5% is $25. You could also get another month or so of “float” before the your credit card bill is due.
Combine a rewards card + 0% APR on purchases. Many credit cards offer 0% APR on purchases for an introductory period of 12 months or longer. If the card also has a half-decent rewards program on purchases, the combination of purchase rewards and spreading out the payments over a year at no interest could be attractive.
Referral program. Plastiq has a somewhat confusing referral program. If a new user signs up via a referral link and pays $500 worth of bills, they will then get $500 “fee-free dollars”. So first you’d have to pay the fee on a bill, and then on your next bill, $500 of it will be “fee-free” (at 2.5% that’s a $12.50 savings). The referrer will get $1,000 in fee-free dollars. If you take advantage of the promo above, that should trigger the bonus. Here’s my referral link. Thanks if you use it.
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