Anybody have issues with Plastiq?

Question

Hi. I'm closing soon on a property.  We decided to use Plastiq for down payment. They declined the wire transfer, but with no clear explanation other than to look at the TOS. I don't know if it's that my attorney doesn't have "title" in his business name or what. I'm just trying to get an idea of what other people have run into using them. It's been a real pain not to be able to speak to an actual person when I am sending thousands of dollars at a time.

Millie Lapidario · Answer

@Season Price @Matthew Hornsby When you tried it, how did you set up your title company as a vendor? I've heard choosing Business Services and then in the subcategory, Business Services, is the way to avoid the system flagging it.

Nicole Heasley Beitenman · Answer

I spoke to Melio, which is similar to Plastiq, and they said, "If it is for paying the title company to close, then it should be fine. However, it is not okay if it involves a credit card payment going to an escrow account." I'm assuming the declined transactions have something to do with how the payment it set up because it appears that some folk are still using this method.

Brad Taylor · Answer

Had good luck with Aven and certain things with that HELOC were very simple. They simply did a desk appraisal, whereas a couple other lenders either wouldn't do that or made me pay for a horrendously bad appraiser. Aven's rates were quite a bit higher, but I understand the risk tradeoff.

However, I'm annoyed by these companies that make it difficult to get someone on the phone and want to do all biz by email! Aven did NOT excel in that category.

If you run a business, you need people to answer the GD phone.

Kerry Baird · Answer

I hadn't heard of Plastiq, but have been digging into the HELOC world for the past couple of years.  These options are used to tap into equity, in case that would get funds in a similar time frame as Plastiq advertises.

Aven offers a credit card that taps into home equity.  Figure presents a very fast draw of equity; some borrowers have reported funds are there in a week.

Matthew Hornsby · Answer

Hello,

I was in a similar situation recently.

About three years ago, I used Plastiq just as you are doing, to help provide the down payment on an investment property. It worked fine back then.

However, I tried using them as part of a down payment on a flip I did about 6 months ago. The payment appeared to be in processing, but after 4-5 days it was declined. The only explanation from their customer service folks was that it "couldn't be used for that type of transaction."

I did use them to pay one of my renovation guys during that same renovation as he wanted cash and didn't want to wait until closing. The transaction to pay the renovation guy worked fine (I provided an invoice from him to Plastiq).

As Kerry Noble said above, they do seem to have "tightened up" their terms. Using them to pay cash to individual contractors seems to work fine, but it appears you cannot use them for a down payment type transaction anymore.

It's a shame, that was a unique way to get some quick short-term cash for deals.

Good luck on your deal.

Zachary Day · Answer

Did you ever get Plastiq to work? I plan on using them in the near future and have been super anxious trying to find out out how legit they are.

Kerry Noble Jr · Answer

Ive heard plastiq was "Tightening up" as of late