Plastiq, a service that allows users to pay more or less any bill using almost any debit or credit card, has increased debit card fee from 1% to a whooping 2.28%. The credit card fee remains unchanged.
Last time Plastiq had a fee increase was in July of 2021 when they had increased fee from 2.5% to 2.28% for credit cards (see related Doctor of Credit post here).
So the question is why did debit card fee increase? The answer is really simple – debit card rewards have been insane. For example, the 3% profit “dead” deal through Plastiq didn’t stay dead for very long. I suspect Paypal Key also played a huge role in it. The folks at Plastiq almost seems to have gone “let’s just up the fee to that of credit card and call it a day”. Its like they almost prefer credit card payments over likely huge volume of debit card payments they were processing. It is possible that debit fee may eventually lower (likely not to 1%) but I assume they need time to collect data and see how things are going.
