Using a Credit Card to Buy a Money Order

Yes, you can buy a money order with a credit card, but it counts as a cash advance

Most places that sell money orders—banks, post offices, grocery stores, and check-cashing shops—will accept your credit card. However, the transaction gets treated as a cash advance, not a regular purchase. That distinction matters because cash advances come with higher fees and interest rates than your everyday card purchases.

When you use a credit card to buy a money order, you are essentially borrowing cash from your card issuer. The money order itself is just the form that cash takes. Your card company charges you for that privilege, starting the moment the transaction goes through—there is no grace period like there is for regular purchases.

Key Takeaways

• Credit card cash advances for money orders typically charge a fee of 3 to 5 percent of the amount, plus interest that starts accruing immediately.
• The interest rate on a cash advance is usually higher than your regular purchase rate and does not get a grace period.
• Debit cards, bank transfers, and cash are cheaper ways to buy a money order if you have access to them.
• Some card issuers limit how much you can withdraw as a cash advance, which may be lower than your credit limit.

How the cash advance fee works

When you buy a money order with a credit card, your card issuer charges you a cash advance fee. This fee is usually a percentage of the amount—typically 3 to 5 percent—though some cards charge a flat fee instead. If you are buying a $500 money order, expect to pay $15 to $25 just for the privilege of using your card.

That fee appears on your credit card statement as a separate charge. It is not part of the money order amount itself. So if you need to send $500, you are actually paying $515 to $525 out of your credit line.

Check your card's terms or call the customer service number on the back of your card to find out your specific cash advance fee. It varies by issuer and sometimes by card type within the same company.

Interest rates start immediately on cash advances

Unlike a regular purchase, which typically has a grace period of 20 to 25 days before interest kicks in, a cash advance starts charging interest the day you make it. There is no grace period at all.

The interest rate on a cash advance is also usually higher than your regular purchase rate. If your card charges 18 percent APR on purchases, the cash advance rate might be 22 or 25 percent. That higher rate applies to both the money order amount and the fee itself.

If you pay off the cash advance within a few days, the interest charge will be small. But if it sits on your card for a month, the interest adds up quickly. On a $500 cash advance at 22 percent APR, you would owe roughly $9 in interest after 30 days.

Where you can use a credit card to buy a money order

Most places that sell money orders accept credit cards, though policies vary slightly by location. The U.S. Postal Service accepts credit cards at post office windows. Banks and credit unions that sell money orders to non-members typically take cards. Grocery store customer service desks and check-cashing shops usually accept them too.

Walmart and other large retailers sell money orders and accept credit cards at the register. Western Union locations, which also sell money orders, generally take cards as well.

The one consistent exception is that some smaller check-cashing shops or independent retailers may only take cash or debit. Call ahead if you are unsure, or ask at the counter before you get in line.

Cheaper alternatives to using a credit card

If you have other payment options, they will almost always cost less than a credit card cash advance. A debit card purchase of a money order is not treated as a cash advance—you are spending money you already have—so you only pay the money order fee itself, which is usually $1 to $3. That is a fraction of what a credit card charges.

A bank transfer or ACH payment is often free or costs just a few dollars, and it goes directly to the recipient without requiring a money order at all. If the person you are paying accepts bank transfers, that is your cheapest route.

Paying with cash avoids any card fees entirely. If you can withdraw cash from an ATM or your bank account and then buy the money order with that cash, you only pay the money order fee.

Cash advance limits on your credit card

Your credit card issuer sets a separate limit on how much you can withdraw as a cash advance. This limit is often much lower than your overall credit limit. You might have a $5,000 credit limit but only a $500 cash advance limit, for example.

That means even if you have available credit, you may not be able to buy a large money order with your card. Check your card's terms or log into your online account to see your cash advance limit. Some issuers let you call and request a higher limit, but that is not may provide.

When a credit card money order makes sense

Using a credit card to buy a money order is most practical when you have no other payment method available and you need to send money urgently. If you do not have a debit card, access to cash, or a bank account set up for transfers, a credit card is better than nothing.

It also makes sense if you are building credit and can pay off the cash advance immediately. The fee and interest are real costs, but if you pay within a day or two, the total damage is small. Just make sure you have the money to pay it back right away—carrying a cash advance balance is expensive.

If you have time and other options, use them instead. The money order fee alone on a debit card or with cash is so much lower that it is worth the extra step.

Frequently Asked Questions

Does buying a money order with a credit card hurt my credit score?

A cash advance itself does not directly damage your score, but it does increase your credit utilization—the percentage of your available credit you are using. High utilization can lower your score slightly. If you pay it off quickly, the impact is temporary.

Can I use a credit card at the post office to buy a money order?

Yes, the U.S. Postal Service accepts credit cards at post office windows for money order purchases. The transaction will still be treated as a cash advance by your card issuer, so the same fees and interest apply.

What if I do not have enough available credit for a cash advance?

Your cash advance limit is separate from your available credit, so you might hit that limit first. If you cannot buy the money order with your card, try a debit card, cash, or ask the recipient if they accept bank transfers instead.

Is there a way to avoid the cash advance fee?

Not if you are using a credit card—the fee is built into how cash advances work. Your only option is to use a different payment method: a debit card, cash, or a bank transfer, all of which avoid the cash advance fee entirely.