(Update 3/13/23: Payment service is now restored, per reader reports)
The bill payment service Plastiq has temporarily suspended payments “to vendors in the US and a few other countries”, apparently due to their bank service with the now defunct Silicon Valley Bank. Hopefully they’ll sort it out soon, but it’ll be sobering to see in the coming weeks which fintechs were seriously affected by the SVB bank collapse.
Hat tip to joghi
What bank is PQ using now?
Why should depositors be punished?
Owners, bond holders, and management to the extent there was negligence should be held accountable and lose their investments and, in the case of management, forfeit proceeds of stock sale if it was not pre-dated.
A lot of businesses cannot easily manage liquidity risk. If you have $200MM in liquidity, how can you adequately spend the time setting up hundreds of accounts at hundreds of Banks just to stay below $250M FDIC threshold? Then, on top of that, spending the time to move money around from Bank to Bank and account to account just to cover working capital on a daily basis.
Disregard, my comment, which makes no sense in this thread, was meant for your brethren below.
I think *some are still with SVB now that their deposits are guaranteed. If not, I do not think this is something that has discussed publicly by those impacted. At least, I have not seen a specific name brought up but rather “we are with a new bank partner”.
so the fed/treasury bailed out SVB depositors above 250k and plastiq didn’t lose their $. How wonderful /end sarcasm
because plastiq no longer allows visa credit cards for mortgage or auto loan payment, i can’t apply for new cards that I wanted to. Can’t keep over buying gift cards or over paying my bills cos my checking account balance will emptied and nothing left!9 years ago, it was so easy to meet spend req. terrible! cmon plastiq allow visa card for mortgage or auto loan please
It’s not Plastiq who won’t allow Visa for mortgage or auto loans; it’s Visa. I’m sure Plastiq would gladly process more Visa payments if Visa would let them.
So, Bilt being on the Mastercard network is no coincidence. Good to know.
So there is no other sites like Plastiq where we can make mortgage or auto loan payment with visa and Mastercard for a fee ? That’s the quickest and best way for me meet spend req.
Mastercard works fine for Mortgage with Plastiq
But sadly most cards we apply are Visa cards so that’s a problem with Plastiq
still not working for me with citi double cash card
Just receive this email from Plastiq. Is it safe to submit payment now?
“We wanted to reach out and apologize for your recent attempt to submit a payment with us. We would like to invite you back to submit your payment now.
Going forward, in order to continue to avoid any future disruptions, we have adjusted our configuration to a new bank processor. We again apologize for this recent inconvenience and appreciate your patience with us as we continue to strive to provide the best possible experience for our customers.”
email from plastiq on 3/13
Hi xxxx,
We wanted to reassure you that the check for your payment – [multiple checks] – have been sent via mail. While your check was processed through Silicon Valley Bank, whose operations were paused and then taken over by the FDIC, all funds held at SVB have been guaranteed and all checks will be honored.
Please ask your vendor to deposit the check as soon as they can.
Your Plastiq Team
I had a wire transfer with Plastiq that was supposed to be delivered last Friday. I had gotten an email on Friday saying that it was delivered. Today I received another email saying that the payment was being processed through SVB and actually was not delivered, but should be “processed in due time”.
Plastiq appears to be working again. Will update if payment gets canceled
I think the issues with Plastiq or any other small commercial deposit account money are back in their control now.
My wife works for a small startup and their entire 50M~ account is with SIVB. As of Friday, they were really worried but they just had an all-hands meeting this afternoon with their CEO saying that they have full control of the money and nothing to worry.
They are taking steps to move funds to multiple financial institutions for managing risk going forward.
Also to test out, I just made a $100 utility check payment which was just processed by Plastiq. I guess we should be good for now.
I think Plastiq is able to make payments now. I wasn’t able to schedule a payment over the weekend, but this morning it accepted a payment I scheduled for next week. Fingers crossed that it’s working again.
Interesting that Plastiq has been incommunicado about the issue as of this morning. I’m sure there are a good amount of folks with a finger on the chargeback trigger who is ready to pull it if Plastiq doesn’t acknowledge the situation or provide some sort of info soon.