Buying a Money Order With a Credit Card: What Actually Works
Most credit card companies won't let you buy a money order directly, but you have workarounds
You cannot walk into most places and hand over a credit card to buy a money order the way you would with cash or a debit card. Credit card networks treat money orders as a cash advance — a loan against your credit limit — rather than a regular purchase. This means the transaction often gets blocked, and if it does go through, you'll pay a cash advance fee (usually 3 to 5 percent of the amount) plus interest that starts accruing immediately, not at the end of your billing cycle like a normal purchase.
The practical routes are to use a debit card instead, withdraw cash from an ATM with your credit card and then buy the money order with that cash, or use a money transfer service that accepts credit cards. Each has different costs and timing, so the right choice depends on what you're trying to do and how much you need to send.
Key Takeaways
- Credit card companies classify money order purchases as cash advances, which triggers fees and immediate interest charges that regular purchases do not have.
- A debit card, prepaid card, or cash from an ATM withdrawal will let you buy a money order without the cash advance penalty.
- Money transfer apps like PayPal, Venmo, and Square Cash accept credit cards and may be faster and cheaper than a money order for sending money to another person.
- If you must use a credit card, a cash advance from an ATM followed by a money order purchase costs less than buying the money order directly with the card.
- Western Union and MoneyGram accept credit cards for money transfers but charge higher fees than a money order bought with cash.
Why credit card companies block money order purchases
Money orders are treated as a cash advance by credit card networks because they function like cash — the recipient can deposit them or cash them without the card issuer's involvement. When you buy a money order with a credit card, the card company sees it as you borrowing money against your credit limit, not spending money you already have access to.
This classification matters because cash advances come with their own fee structure. You'll typically pay a cash advance fee of 3 to 5 percent of the amount (so $3 to $5 per $100 money order), and interest starts accruing the day of the transaction — there's no grace period like there is for regular purchases. If you carry a balance, that interest compounds daily until you pay it off.
Some card issuers block money order purchases entirely at certain retailers. Others allow the transaction but flag it for review. A few may decline it outright. The outcome depends on your specific card issuer and their fraud prevention rules.
Using a debit card or cash instead
The simplest solution is to use a debit card if you have one. Money order sellers treat debit cards as regular purchases, not cash advances, so you pay only the money order fee itself (usually $1 to $5 depending on the amount and where you buy it). There's no additional credit card fee and no interest.
If you don't have a debit card, you can withdraw cash from an ATM using your credit card. You'll pay a cash advance fee for the ATM withdrawal itself, but once you have the cash, you can buy the money order without any additional fees. The total cost is the ATM fee plus the money order fee — often cheaper than trying to buy the money order directly with the card if your card issuer allows it at all.
A prepaid card (like a Visa or Mastercard gift card loaded with money) also works like a debit card for money order purchases. If you already have one with a balance, this is a free option.
Money transfer apps as an alternative to money orders
If you're sending money to another person rather than paying a bill, a money transfer app may be faster and cheaper than a money order. Apps like PayPal, Venmo, Square Cash, and Google Pay all accept credit cards and move money between accounts in minutes to a few hours.
The catch is that the recipient needs to have an account with the same app (or a linked bank account to receive the transfer). Money orders work for anyone — the recipient just needs to cash or deposit it. If you're sending money to someone who doesn't use apps or doesn't have a bank account, a money order is still the better choice.
Credit card fees vary by app. PayPal charges 2.2 percent plus $0.30 for credit card transfers. Venmo charges 3 percent for credit card payments. Square Cash charges 1.5 percent. For a $500 transfer, that's roughly $11 to $16 in fees — comparable to or higher than a money order, depending on the amount.
Western Union and MoneyGram with a credit card
Western Union and MoneyGram both accept credit cards for money transfers, and they don't treat the transaction as a cash advance the way a traditional money order does. However, their fees are significantly higher than buying a money order with cash.
Western Union charges $5 to $50 depending on the amount and destination. MoneyGram charges $4.99 to $45. For comparison, a money order bought with cash at a bank or post office typically costs $1 to $5. The credit card convenience comes at a premium.
These services are useful if you need to send money internationally or to someone without a bank account, but for domestic transfers to someone who can deposit a money order, the money order itself is cheaper.
What happens if your credit card purchase goes through
If a retailer's system doesn't flag the money order purchase as a cash advance and your card issuer approves it, you'll still face the cash advance fees and interest. Some card issuers don't catch the transaction until later, so it may post to your account as a regular purchase initially, then get reclassified and hit with fees a few days later.
Check your card's terms or call the issuer before attempting the purchase. Ask directly: "If I buy a money order with this card, will it be treated as a cash advance?" Getting a clear answer upfront saves you from unexpected fees.
If you're charged a cash advance fee you believe was an error, contact your card issuer's customer service. Some issuers will reverse a single fee if you explain the situation, though they're not required to.
Comparing your actual costs
Here's how the costs stack up for a $500 money order:
| Method | Total Cost | Time to Recipient |
|---|---|---|
| Cash or debit card + money order | $1–$5 (money order fee only) | 1–3 days |
| Credit card cash advance + money order | $15–$30 (ATM fee + cash advance fee + money order fee) | 1–3 days |
| Credit card direct to money order (if approved) | $15–$30 (cash advance fee + interest + money order fee) | 1–3 days |
| PayPal with credit card | $11–$16 (2.2% + $0.30) | Minutes to hours |
| Western Union with credit card | $5–$50 (service fee) | Minutes to hours |
If you have access to cash or a debit card, that's always the cheapest route. If you don't, a credit card cash advance followed by a money order purchase is cheaper than trying to buy the money order directly with the card.
Frequently Asked Questions
Will my credit card be declined if I try to buy a money order?
It depends on your card issuer and the retailer's system. Some issuers block money order purchases automatically. Others allow them but charge cash advance fees. The only way to know for sure is to call your card issuer and ask, or attempt the purchase and see what happens. If it's declined, you'll know to use a different payment method.
Can I use a credit card at the post office to buy a money order?
The post office accepts credit cards for money order purchases, but your card issuer may still treat it as a cash advance. The post office's acceptance doesn't override your card company's rules. Call your card issuer first to confirm they won't charge cash advance fees.
Is a money order safer than sending cash through the mail?
Yes. A money order is traceable, can be replaced if lost, and requires the recipient to provide ID to cash it. Cash cannot be replaced and leaves no record. If you're mailing payment, a money order is the safer choice.
What's the difference between a money order and a cashier's check?
A cashier's check is issued by a bank and typically costs $5 to $15. A money order is issued by retailers, banks, or post offices and costs $1 to $5. Cashier's checks are larger amounts and are more formal, but for most personal payments under $1,000, a money order is sufficient and cheaper.
Can I buy a money order with a credit card online?
Most online money order services don't exist — money orders are physical documents you buy in person. However, some bill payment services let you pay bills online using a credit card, which is faster and doesn't require a money order at all. Check whether your biller accepts online payment before buying a money order.