Buying a Money Order With a Credit Card: What Actually Works
Most credit card issuers won't let you buy a money order directly, but you have workarounds
You cannot walk into most places that sell money orders and hand over a credit card to buy one. Western Union, MoneyGram, the post office, and grocery store money order counters treat money orders like cash transactions — they want a debit card, cash, or a bank account transfer. The reason is simple: money orders are meant to be final, irreversible payments, and credit card companies don't want the liability of reversing one after it's already been sent.
That said, you can still get a money order if you have a credit card. The path just requires an extra step: you use your credit card to get cash or move money into a checking account, then use that to buy the money order. The method you choose depends on what your card allows and what fees you're willing to pay.
Key Takeaways
- Credit card companies block direct money order purchases because money orders are irreversible, and they want to avoid disputes and chargebacks.
- You can withdraw cash at an ATM using your credit card (though this costs a cash advance fee, typically 3–5% of the amount), then use that cash to buy a money order.
- Some credit cards let you transfer money to a linked checking account at no cost, which you can then use to buy a money order without the cash advance fee.
- Buying a money order with a credit card costs more than using cash or a debit card because you pay both the money order fee and the credit card fee.
- If your credit card offers a 0% introductory period, a cash advance during that period still costs the cash advance fee but no interest.
Why credit card companies block money order purchases
Money orders are designed to be final. Once you hand over cash or a debit card payment and receive a money order, the transaction is done. The seller has your money, and you have a piece of paper to send to someone else. There's no dispute process, no chargeback, no way to reverse it if you change your mind or if something goes wrong.
Credit card companies, by contrast, build their entire system around the ability to dispute charges. If you call your card issuer and say a charge was fraudulent or unauthorized, they can reverse it and investigate. That protection is valuable for everyday purchases, but it creates a problem with money orders. If someone could buy a money order with a credit card, dispute it, and get their money back while the money order is already in someone else's hands, the credit card company would be out the cash. That's why Visa, Mastercard, and American Express classify money order purchases as cash-like transactions that can't be charged to a credit card.
Using a cash advance to get money for a money order
A cash advance is when you use your credit card to withdraw cash from an ATM or a bank teller. It's the most straightforward way to turn a credit card into money you can use to buy a money order. You go to an ATM, insert your card, enter your PIN, and withdraw cash just as you would with a debit card.
The catch is cost. Cash advances charge a fee — typically 3% to 5% of the amount you withdraw, with a minimum fee of $5 to $10. So if you withdraw $500 to buy a $500 money order, you might pay $15 to $25 just for the cash advance, on top of the money order fee itself (usually $1 to $3). You also start paying interest on the cash advance immediately, even if your credit card normally has a grace period for purchases. That interest rate is often higher than your regular purchase rate.
Once you have the cash, you can walk into any money order seller — Western Union, MoneyGram, your bank, the post office, or a grocery store — and buy a money order the normal way.
Transferring credit card money to a checking account
Some credit cards let you transfer money directly from your credit line to a linked checking account. This is sometimes called a balance transfer to a bank account or a convenience check feature. If your card offers this, you can move money into your checking account at no transfer fee, then use your debit card or a check to buy the money order.
Not all cards offer this feature, and the ones that do often charge a fee similar to a cash advance fee (3–5%). But if your card does it for free, this route saves you money compared to a cash advance. You still pay interest starting immediately, just like a cash advance, so this is only cheaper if the transfer itself is free.
To learn about your card offers this, log into your online account or call the customer service number on the back of your card. Ask whether you can transfer money to a checking account and what the fee is. If the fee is the same as a cash advance fee, there's no advantage to using this method over an ATM withdrawal.
What happens if you try to buy a money order with a credit card anyway
If you walk up to a money order counter and try to pay with a credit card, the seller will decline it. Western Union, MoneyGram, and the post office have point-of-sale systems that simply don't accept credit cards for money orders — the transaction won't go through. Some grocery stores or check-cashing places might accept a credit card for other services but still refuse it for money orders.
You won't be charged anything for the declined attempt, but you will have wasted time. The seller will ask you to pay with cash, a debit card, or a bank account transfer instead.
Comparing the total cost of different methods
Let's say you need a $500 money order. Here's what it costs with different payment methods:
| Method | Cash Advance Fee | Money Order Fee | Interest (first month) | Total Cost |
|---|---|---|---|---|
| Credit card cash advance | $15 (3%) | $1.50 | ~$6 (assuming 15% APR) | ~$22.50 |
| Credit card bank transfer (if free) | $0 | $1.50 | ~$6 | ~$7.50 |
| Debit card or cash | $0 | $1.50 | $0 | $1.50 |
The numbers show why using a credit card for a money order is expensive. You're paying the money order fee plus a credit card fee, plus interest. If you have a debit card or cash, that's always the cheaper choice. A credit card only makes sense if you have no other way to pay and you need the money order urgently.
When a credit card money order might make sense
There are a few situations where paying for a money order with a credit card is worth the extra cost. If you're building credit and you don't have a debit card yet, a cash advance followed by a money order purchase shows you can handle credit responsibly (though there are cheaper ways to build credit). If you're in an emergency and need to send money to someone who won't accept a credit card payment, a money order might be your only option.
If your credit card offers a 0% introductory APR period, a cash advance during that period still costs the cash advance fee, but you won't pay interest for several months. That makes it cheaper than a cash advance on a card with a regular interest rate, though it's still more expensive than using cash or a debit card.
In most everyday situations, though, a money order bought with a credit card is an expensive way to move money. If you have any other payment method available, use it instead.
Frequently Asked Questions
Can I use a credit card to buy a money order online?
No. Online money order services like MoneyGram.com and Western Union's website also don't accept credit cards for money orders. You can use a credit card to pay for other services on those sites, but money orders specifically require a debit card, bank account, or cash.
Does paying for a money order with a credit card hurt my credit score?
A cash advance itself doesn't hurt your score, but it can indirectly affect it. Cash advances count toward your credit utilization (how much of your available credit you're using), which can lower your score if it pushes you above 30% utilization. The interest you pay also costs more money, which can make it harder to pay down your balance.
What if my credit card doesn't have a PIN for ATM withdrawals?
Call your card issuer and ask them to set up a PIN for you. Most credit cards can be used at ATMs once you have a PIN, but some newer cards don't come with one by default. It usually takes a few minutes to set up over the phone.
Can I use a credit card to buy a money order at Walmart or Target?
No. Walmart, Target, and other retailers that sell money orders through their customer service desks follow the same rules as Western Union and MoneyGram — they won't accept credit cards for money orders. You'll need to use cash, a debit card, or a bank transfer.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Your credit card issuer sets a cash advance limit, which is often lower than your regular credit limit. You can find your cash advance limit in your online account or by calling customer service. Some cards set it at 20–50% of your total credit limit.