Melio vs Plastiq: Which is a Better Choice for Your Needs?

Looking for an Unbiased Comparison between Melio Vs Plastiq? Don’t worry, I got you covered.

Two of the most popular digital payment systems now on the market are Melio and Plastiq.

You should consider implementing any of these two solutions if you own a business and want to cut down on the time and money spent on the accounts payable and receivable processes.

Despite having similar functionality, some systems have significant differences from one another.

I’ll carefully compare Melio and Plastiq in this article to decide which of these two digital payment systems is better.

To help you choose which product to buy, I will discuss what they have in common and the differences between Melio vs. Plastiq.

Let’s get this show moving.

Bottom line: Melio has won this battle. In this head-to-head matchup between these two electronic payment methods, Melio triumphs.

Although its functionality is somewhat similar to that of other platforms, including the ability to pay and be paid via a range of various methods, Melio differs from other platforms in a number of important aspects.

Melio does not charge a fee for processing debit card transactions, in comparison to Plastiq, which demands payment from users. Moreover, Melio offers companies the freedom to accept client transaction fees, whereas Plastiq does not.

Melio would be my choice if all other factors were nearly equal while comparing Melio vs. Plastiq.

Melio vs. Plastiq: Differences

Melio vs. Plastiq

You must thoroughly analyze these tools to determine what makes them unique. But, if you look closely and for a long enough period, you will discover significant variances.

Related: Melio vs Stripe


Let’s start with the key differences between the two tools, primarily based on their costs. While some variations are plain to see, others are more subtle if you like; they are in small print.

Although slight, there is a notable difference between the pricing strategies employed by Melio and Plastiq. As covered in the preceding section, both models share several traits. Because there is no fee to sign up or an ongoing fee, each of these solutions is essentially free to use.

The distinction between them is that each charges a fee for a certain transaction despite serving the same purpose.

Melio and Plastiq charge a transaction fee when processing credit card payments on their platforms. Whether your business gives credit to suppliers or vendors so that you can pay them or give credit to customers so that you may collect payment from them, each interaction has a price.

Melio charges 2.9% of the total transaction amount for credit card payments, whereas Plastiq charges 2.85%.

Even while a difference of 0.05% may not seem like much, business owners, especially small business owners, place a high value on every single penny; thus, this difference could end up being rather significant.

Plastiq also charges the same fee for debit purchases as credit transactions, which is potentially more important. There are considerable differences between the two tools, which will probably influence your choice of which one is ideal for you.

Last but not least, there is a difference in pricing that may impact your relationship with your customers, either positively or negatively. This may be the most important point.

Both systems charge a fee for processing credit card transactions, as mentioned.

Both payments made to suppliers and to customers are subject to this fee. Using Melio, you, as the business owner, may decide whether you or the client is liable for covering that expense while considering your customers’ interests.

While purchasing from you using a credit card while utilizing Plastiq, your customer has no choice but to be charged.

Although Melio charges slightly less than Plastiq for processing credit card transactions, I believe Melio wins this battle.

Plastiq also charges fees for debit transactions and does not allow businesses to relieve their customers of the financial burden associated with paying such costs for their business favors Melio.

Don’t forget to check out my Comprehensive Melio Review 2023; Click Here to Read.

Related: Melio vs PayPal

International transactions

Depending on the type of business you run, this category may be advantageous to you or it may be a burden.

Customers can use “some of the best exchange rates anywhere” to pay for goods and services in more than 40 countries and 20 different currencies by using Plastiq’s worldwide payments function.

If you are the owner of a company that conducts business internationally, you should probably pay attention to this.

But, having the ability to transmit payments to companies abroad won’t be very useful if you own a small firm in the United States. If you used Plastiq’s worldwide payments, you would have to pay the debit card transaction costs and wouldn’t be able to charge transaction fees to your customers—all for functionality that you don’t need.

Indeed, it would be a disservice on your part to use the international payments that Plastiq provides.

Because the result depends on the industry one is involved in, there isn’t a clear winner in this contest. For now, we’ll call it a draw.

Melio vs. Plastiq: Similarities

From the top of the mountain, Melio and Plastiq appear to be remarkably similar. The smallest details are where they diverge from one another.

Examples of digital payment options targeted toward business organizations are Melio and Plastiq. They let users send and receive payments using several channels, including cheques, wire transfers, bank transfers, debit and credit transactions, and ACH payments, among others.

Each tool’s price to use is likewise quite equal to one another. Both of these technologies can be used for practically no money. Both options don’t have a sign-up or monthly subscription price, and they remain free even if you increase the volume of your bills, the volume of your transactions, or the number of users of the system.

There is a very slight difference between their respective pricing models, which we shall discuss in more detail in the section where we compare them.

One of the major issues that a company may face is that its vendors and suppliers prefer one mode of payment while the firm chooses another. Consider when a supplier prefers wire transfers while the business prefers credit card payments.

An analogous solution to this problem is offered by Melio and Plastiq. In keeping with the prior example, both choices provide a conversion service that will let the vendor receive payment from the business while the business will handle the wire transfer.

The contest between Melio and Plastiq is competitive once more. Although these technologies offer comparable services, the distinctions are in the details.

Now that we’ve examined how the two tools are similar, let’s look at how they differ. You’ll need to consider these factors to make an informed decision.

Related: Melio Vs

Final Thought on Melio vs. Plastiq

In the end, if I had to choose, I would suggest Melio over Plastiq.

Each software may have certain features that would be more advantageous to one type of business. Still, if we assume that those features are similar, then the only difference between the tools that matters is the price, and here is where Melio excels.

Due to its approach of not charging for an entire category of transactions (debit) and allowing businesses to transfer expenses to customers, Melio triumphs in the Melio vs. Plastiq heavyweight fight. Melio won this fight thanks to both of these elements.

Further Read:

Leave a Reply

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