USAA Cards Not Earning Reward Points (Cashback) for Plastiq Payments

This site is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CardRatings.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers. What is written in the article is the editor's opinion.

I opened a new USAA card to take advantage of a 0% APR rate until February 2020 (but gosh how I wish the Limitless card with 2.5% cashback everywhere would come back). I previously got a new card to make a student loan payment.

So the USAA Preferred Cash Rewards card earns 1.5% cashback on purchases. I was hoping Plastiq payments would code as “miscellaneous services” (or similar), but nope, they post as a “quasi-cash merchant” and do not earn any reward points.

So don’t use your USAA card with Plastiq!

More importantly, I hope this doesn’t signal a trend of Plastiq coding as cash-like purchases.

usaa plastiq payments

Don’t mix USAA cards with Plastiq payments, cuz you won’t earn rewards

Even still, I was not charged a cash advance fee per Plastiq’s advising.

Tread carefully with USAA Plastiq payments

Currently, the best cards to use for Plastiq payments are:

Within this framework, there aren’t many worthwhile cards left. That’s why I recommend the Blue Business Plus Amex (learn more here) for most payments, though the jury’s still out regarding mortgage payments.

If you go the Visa personal card route, you’ll get a cash advance fee on cards except those issued by:

  • Capital One
  • Navy Federal Credit Union
  • Alliant Credit Union
  • USAA
  • Wells Fargo

So when I saw USAA on the list, I thought, yay I can make payments without fees and get caught up on some bills.

I still did that but…

USAA cards don’t earn rewards for cash-like transactions

And Plastiq codes as a “quasi-cash merchant.” I hoped it would code differently.

USAA coding as cash-like

The only rewards I earned for this billing cycle were for my Sinemia membership (I’m using it the first time this week – review coming!). I earned nothing for $1,000+ of Plastiq payments.

Only earned ~30 measly points

That said, I did NOT incur cash advance fees (whew!) – so that is still a net positive.

No fees for any of the charges though

But it stung a little to lose/not earn all that cashback. Which would’ve been awesome, but alas.

Bottom line

The bit about USAA cards not earning rewards for Plastiq payments is niche because not everyone can get a USAA card. But the bigger issue is how Plastiq codes – and how it continues to shift.

In a general sense, I hope this doesn’t mean a shift toward no rewards with any cards because these payments will eventually code as cash-like instruments. If that ever happens, Plastiq will be useless.

For now, I’m still earning points and cashback with other cards. And, touch wood, I hope USAA is alone in how they’re processing payments for a long time.

Just wanted to put it out there in case you’re in the same boat.

BEST Current Credit Card Deals

Support me by opening one of my favorite credit cards for award travel!

* If you liked this post, consider signing up to receive free blog posts in an RSS reader and you’ll never miss an update! And thanks for using my links to apply for new card offers!

About Harlan

Just a dude living in Dallas.

More articles by Harlan »

Editorial Note: Opinions expressed here are author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. The opinions of the commenters are not necessarily the opinions of this site.

Pingbacks

Comments

  1. Harlan, do you know if the New world of hyatt credit card will code the plastic payments as a cash advance? It’s a consumer card, but I read somewhere that as long as the amount is less than 20% of credit limit, that it should not? Trying to meet minimum spend on another card! Btw, sorry wasn’t able to make it to the meet up last week. Hope you guys had a good time!

    • Yes, that’s right! Just call Chase to set your CA limit to as low as they’ll go (I set mine to $100). You should earn full rewards for Plastiq payments.

      And no worries, there will be more – and you were missed! 🙂

  2. Visa is definitely presenting some challenges for Plastiq right now. I have VGCs issued by US Bank and Metabank that won’t process through Plastiq because they’re coding as MCC 6051, “Non Financial Institutions — foreign currency, money orders (not wire transer), & Travelers Cheques”, which those banks are blocking. It’s been really frustrating and limits the utility of a service like Plastiq. Can’t use Amex either for my student loans since they’re financed with a private bank (as opposed to a SL servicer like Mohelo, Nelnet, etc).

Leave a Reply

Your email address will not be published. Required fields are marked *