Buying a Money Order With a Credit Card: What Works and What Doesn't

Most credit card issuers 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. Visa, Mastercard, and American Express treat money orders as a cash advance — a loan against your credit line — rather than a regular purchase. That means the transaction triggers a cash advance fee (usually 3 to 5 percent of the amount) plus interest that starts accruing immediately, even if you normally pay your balance in full.

The practical result: buying a $500 money order with a credit card costs you $15 to $25 upfront, plus daily interest until you pay it back. That makes it expensive compared to paying with cash or a debit card, where there is no fee at all. But if you have no other option, there are a few paths that work.

Key Takeaways

• Credit card companies classify money order purchases as cash advances, which charge a separate fee (typically 3 to 5 percent) and start accruing interest immediately.
• You can use a credit card to withdraw cash from an ATM, then use that cash to buy a money order, though you will still pay the cash advance fee.
• Some credit cards issued by banks (like Bank of America or Chase) may let you buy a money order at that bank's branch without the cash advance fee, so it is worth asking your card issuer first.
• Money order vendors like Western Union and MoneyGram almost never accept credit cards directly for money orders, though some accept them for other services.
• If you need a money order regularly, a debit card or cash is far cheaper than using a credit card.

Why credit cards trigger a cash advance fee for money orders

Credit card networks and banks see a money order as a way to convert credit into cash-like value. When you buy a money order, you are essentially getting a financial instrument that works like cash — the recipient can deposit it or cash it anywhere. From the card issuer's perspective, this is the same as withdrawing $500 from an ATM, so they apply the same rules.

A cash advance fee is a flat charge, usually $5 to $10 or a percentage of the amount (3 to 5 percent), whichever is higher. On top of that, the interest rate for cash advances is often higher than the rate for regular purchases — sometimes 2 to 3 percentage points higher. Interest starts accruing the day you make the transaction, with no grace period like you might have on a regular purchase.

This is why using a credit card to buy a money order is almost always more expensive than using cash or a debit card. The fee alone makes it a poor choice unless you have no other way to pay.

Using a credit card to get cash, then buying a money order

If your credit card issuer will not let you buy a money order directly, you can withdraw cash from an ATM using your credit card, then use that cash to buy the money order. You will still pay the cash advance fee and interest, but at least the process is straightforward.

Here is how it works: Find an ATM that accepts your card (your bank's ATM, or a network ATM like Allpoint or MoneyPass). Insert your card, select "Withdraw Cash," and enter the amount you need. The cash comes out, and the charge appears on your credit card statement as a cash advance. Then take that cash to any money order vendor — the post office, Walmart, Western Union, MoneyGram, or your bank — and buy the money order as you normally would.

The downside is the same: you pay the cash advance fee upfront and interest from day one. If you need $500, expect to pay $15 to $25 in fees alone, plus interest until you pay the balance.

Asking your bank if they will waive the cash advance fee

Some banks that issue their own credit cards will let you buy a money order at a branch without triggering the cash advance fee. This is not common, but it is worth a phone call to your card issuer before you assume you are stuck with the fee.

Call the customer service number on the back of your card and ask: "If I go to a branch and buy a money order with my credit card, will it be treated as a cash advance?" If the answer is yes, ask if there is any exception for in-branch purchases. Some banks — particularly larger ones like Chase, Bank of America, or Wells Fargo — may have a policy that treats in-branch money order purchases as regular transactions instead.

Even if they say no, you have not lost anything by asking. If they say yes, you have just saved yourself the cash advance fee. Go to a branch in person with your card and ID, and buy the money order there.

Money order vendors and credit card acceptance

Most places that sell money orders do not accept credit cards at all. The post office, Walmart, and most grocery stores require cash or a debit card. Western Union and MoneyGram, which operate kiosks in many stores, also typically do not accept credit cards for money orders specifically.

However, some Western Union and MoneyGram locations may accept credit cards for other services (like wire transfers), so it is worth asking when you are there. But for a standard money order, assume you need cash or a debit card.

If you do not have a debit card and your credit card issuer will not help, your only option is to withdraw cash first using the ATM method described above.

When a credit card money order purchase makes sense

There are very few situations where paying a cash advance fee and interest to buy a money order is worth it. The main scenario is when you have no debit card, no access to cash, and you absolutely must send a money order today — and the recipient will not accept any other payment method.

Even then, consider alternatives first. Can you send a check instead? Can you use a peer-to-peer payment app like Venmo, PayPal, or Cash App? Can you ask the recipient if they will take a bank transfer? All of these are free or nearly free, and none of them trigger a cash advance fee.

If a money order is truly the only option and you have no other way to pay, then yes, use your credit card. But know that you are paying extra for the convenience, and plan to pay off the balance as quickly as possible to minimize interest charges.

Frequently Asked Questions

Will my credit card company tell me in advance if a money order purchase will be a cash advance?

No, most will not. You will only find out when the charge appears on your statement. That is why calling ahead to ask your issuer's policy is the best way to know for sure. Some card issuers post their cash advance policy online in the terms and conditions, but it is easier to just call.

Can I use a prepaid credit card to buy a money order without the cash advance fee?

It depends on the prepaid card. Some prepaid cards are treated like debit cards by money order vendors and will not trigger a cash advance fee. Others are treated like credit cards and will. Call the prepaid card issuer and ask how they classify money order purchases, or ask the money order vendor before you try to buy.

What if I use my credit card to pay for a money order online?

Some online money order services (like MoneyGram online) do accept credit cards for online purchases, and these are usually treated as regular purchases, not cash advances. However, you will still pay a service fee, which can be $5 to $15 depending on the amount. Check the vendor's website for their fee structure before you proceed.

Is there a limit to how much I can spend on a money order with a credit card?

Money orders themselves have limits — most vendors cap them at $1,000 per order, though you can buy multiple orders. Your credit card's cash advance limit (if the purchase is treated as a cash advance) may be lower than your overall credit limit, so you might not be able to charge the full amount. Check your card's terms or call your issuer to find out your cash advance limit.

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

A single money order purchase will not directly hurt your score, but it does increase your credit utilization (the amount of your available credit you are using), which can lower your score slightly. If you pay off the balance quickly, the impact is temporary. Carrying the balance and paying interest over time will have a bigger effect on your score.