Let’s start with the bad news. This month we’ve seen a bit of a crack down on rental and mortgage payments on credit cards.
- Plastiq no longer allows mortgage payments with Visa cards.
- Rental/mortgage payments made with the Sapphire Reserve and Ink Business Preferred cards on Plastiq are not typically earning 3x Ultimate Rewards anymore as they once were (payments were coding as lodging, therefore falling in the bonused category of travel)
- The Citi AT&T Access More card will no longer earn 3x ThankYou Points on rental/mortgage payments nor purchasing or reloading gift cards online as of July 22, 2017.
Now, some good news: There are other functioning ways to pay your rent or mortgage with credit cards.
- Pay your mortgage on Plastiq with a card issued by MasterCard, American Express, or Discover. Rental payments on Plastiq can still be made on all types of cards including Visas. Credit card fee is 2.5%.
- Pay your rent on RadPad. Credit card fee is 2.99% and accepts all major card types. There’s no big advantage I can see anymore to using RadPad versus Plastiq for paying rent.
- Pay your rent on Rentler. Credit card fee is 2.5% and accepts all major card types. The difference between Plastiq and Rentler that I believe makes Plastiq a better option for paying rent is that Rentler requires your landlord to sign up while Plastiq does not.
Unless you have a specific issue with Plastiq (let us know in the comments your experiences), I’d say it’s the cheapest and easiest online credit card processor for paying rent and mortgage through. You can also pay other bills on Plastiq. Read more about what you can and can’t pay for in Is Plastiq Worth It? Paying Your Bills Online with Credit Cards to Earn Miles.
When You’d Want to Pay Your Rent or Mortgage With a Credit Card
Paying rent or mortgage or another bill you can’t normally pay with a credit card can be worth it if the return is high enough. For example, earning 3x Ultimate Rewards on rental or mortgage payments on Plastiq would be worth it to me since I value Ultimate Rewards at 2 cents each, and the cost of processing a credit card payment on Plastiq is 2.5%–but that is no longer an option.
But the option of using rental/mortgage payments to meet minimum spending requirements is not dead. Often the effective rebate on meeting a minimum spending requirement is 20% or more. That means if you pay your large bills via Plastiq that are otherwise not payable on credit cards in order to open more cards and meet more minimum spending requirements, the 2.5% fee can be a drop in the bucket compared to the rewards you’ll earn.
If you’re not trying to reach a minimum spending requirement for a sign-up bonus, I wouldn’t use Plastiq for bill payments on cards that earn 1 mile per dollar as I don’t value any miles at greater than 2.5 cents (for example, my highest valued point is SPG at 2.5 and highest valued mile is Virgin America mile at 2.3 cents each).
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Paying via Plastiq, you used to be able to earn 3x Ultimate Rewards for rental/mortgage payments made on the Sapphire Reserve and Ink Business Preferred, as well as 3x ThankYou points for rental/mortgage payments made on the Citi AT&T Access More card. For the majority of people, neither are earning that 3x category bonus anymore.
You can no longer pay your mortgage on a Visa credit card through Plastiq, however you can with MasterCard, American Express, or Discover card. You can still use any card to pay rent via Plastiq (for a 2.5% processing fee).
Hat tip Million Mile Secrets