No, PayPal Key & Plastiq Isn’t Dead…For Everyone

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No, PayPal Key & Plastiq Isn’t Dead…For Everyone

There have been a few posts from Doctor of Credit and Frequent Miler saying that using PayPal Key on Plastiq is dead. That is true for a lot of people but not for everyone.  I have multiple data points confirming that they were able to still make payments last night and today with it.  The perk of using PayPal Key to make the payment is that it codes 1% (debit card) on Plastiq instead of the normal 2.85% when using a credit card.  That makes it profitable to pay your bills with pretty much all rewards earning credit cards.

So if you have been wallowing in despair it is worth at least trying today to make a payment.  It does seem unlikely that it will last long for the people that are still able to do it so get in what payments you can, while you can.

Mark Ostermann
Mark Ostermann is a father, husband and miles/points fanatic. He left the corporate world after starting a family in order to be a stay at home dad. Mark is constantly looking at ways to save money and stay within budget while also taking awesome vacations with his family. When he isn't caring for his family or taking a weekend trip, Mark is working towards his goal of visiting every Major League Baseball ballpark.

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  1. I got to the bottom of this. Paypal made a change in the last week that Paypal key will only work for ‘cash-like’ transactions if there is money in the Paypal account from a bank funding source. Bills and payment services are considered cash-like transactions. Plastiq’s terminal is coded this way. So, I believe it is done.

    • PayPal Key doesn’t make the payment it just gives you a new card member which codes as a debit card (even when using a credit card) for transactions. That triggers a lower fee on Plastiq.

  2. […] with most people reporting failure on all Plastiq payments with PayPal Key over the past few days. Miles to Memories reported that it is still working for some people, though I haven’t had positive data points to […]

  3. I am getting the transactions rejected. Ut says rejected by card issuer. Amex says they are not rejecting them and I see the charges as pending. They say the merchant is. Plastiq says they are not rejecting them and PayPal is. Not sure who to believe.

  4. When FM first brought this up I tried to sign up but got a strange response that PayPal was verifying my information, whatever that means. I’ve since tried again a number of times but always got the same message. Not so much a complaint as a data point.

    • Thanks for the DP. I do think there are a lot of people locked out right now but for some reason quite a few are still able to get through too. Although I doubt that lasts very much longer.

      • It lasts much less longer when you bring these things up from the abyss of DOC comments.
        And I can tell you the reason it’s occurring and it’s due to the account levels of the PayPal users. They’re not seasoned. Good luck.


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