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 carefully consider implementing any of these two solutions if you are the owner of 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.

In order to help you choose which product to buy, I will discuss what the two of them have in common and what is the difference 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.

If everything else were roughly equal, Melio would be my pick.

Melio vs. Plastiq: Differences

Melio vs. Plastiq

You must thoroughly analyze these tools in order to determine what makes them unique from one another. But, if you look closely and for a long enough period of time, you will discover that there are significant variances.


Let’s start with the key differences between the two tools, which happen to be mostly based on their respective costs. While some of the 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 was covered in the section preceding this one, both models share a number of 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, despite serving the same purpose, each of them charges a fee for a certain kind of transaction.

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

For credit card payments, Melio charges 2.9% of the total transaction amount, 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 it does for credit transactions, which is potentially more important. There are considerable differences between the two tools, and it’s probable that these differences will influence your choice of which one is ideal for you.

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

Both of these systems charge a fee for processing credit card transactions, as was already 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 keeping in mind the interests of your customers. While making a purchase from you using a credit card while utilizing Plastiq, your customer has no choice but to be charged.

Despite the fact that Melio charges a little less than Plastiq for processing credit card transactions, in my opinion, Melio wins this battle. The fact that Plastiq also charges fees for debit transactions and does not give businesses the option of relieving 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.


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 a number of 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 of these 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 the two models.

One of the most major issues that a company may face is the fact that its vendors and suppliers prefer one mode of payment while the firm chooses another. Consider the situation 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 of these choices provide a conversion service that will let the vendor receive payment from the business while the business will be in charge of handling the wire transfer.

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

Now that we’ve looked at how the two tools are similar, let’s look at how they differ. These are the factors you’ll need to take into account in order to make an informed decision.

Final Thought on Melio vs. Plastiq

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

It’s possible that each tool has certain features that would be more advantageous to one type of business than another, but 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 the option of transferring expenses to customers, Melio triumphs in the Melio vs. Plastiq heavyweight fight. Melio won this fight thanks to both of these elements.

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