Plastiq's payment service will enable Canadians to pay taxes with their credit card.

Plastiq's service asks consumers to pick up the cost of card acceptance. It presents a service fee that is added to the transaction amount, much like sales tax is typically added at the point of sale.

The Canada Revenue Agency, Canada’s version of the IRS, has recognized Plastiq as a means to use a credit card for payments, Plastiq says.

"Many Canadians are very savvy with their credit card use, balancing a number of preferred cards to ensure their rewards are maximized," said Eliot Buchanan, co-founder and chief executive officer of Plastiq, in a press release. "With Plastiq, a credit card is now a viable option to pay personal income tax, providing consumers with new choices and flexibility to strategically manage payments while capitalizing on the rewards offered by their credit card provider."

Plastiq, which targets market segments that traditionally don’t accept credit cards, announced a new round of funding in February. Its clients include educational institutions, boating and auto sectors, as well as real estate and rental companies. Plastiq also has partnerships with MasterCard and American Express.

Canadians had previously not been allowed to use credit cards to pay taxes. U.S. taxpayers have the option to pay taxes with a credit or debit card.

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry