Buying a Money Order With Your Credit Card: What Actually Works

Published on November 2, 20268 minute read

Most credit cards won't let you buy a money order directly, but you have workarounds

You cannot walk into most places that sell money orders—Western Union, MoneyGram, your bank, or the post office—and hand them a credit card to buy one. Money order sellers treat credit card purchases as cash advances, which come with fees and higher interest rates. Some sellers block them outright. But if you need a money order and only have a credit card available, you have real options that don't involve paying extra charges.

The most straightforward path is to use your credit card to withdraw cash at an ATM, then use that cash to buy the money order. This costs you only the ATM fee your card issuer charges (usually $2 to $3), not the cash advance fee a money order seller would add. A second option is to use a payment app like PayPal or Square Cash to send money directly to the person or business you're trying to pay—which often works better than a money order anyway. A third is to ask your credit card issuer whether they offer balance transfers to a checking account, which some do at a lower rate than a cash advance.

Key Takeaways

Withdrawing cash from an ATM using your credit card, then buying a money order with that cash, costs only the ATM fee and avoids the higher cash advance fee.
Payment apps like PayPal, Venmo, and Square Cash can send money directly to individuals or businesses, which often replaces the need for a money order entirely.
Some credit card issuers allow balance transfers to a checking account at a lower rate than a standard cash advance.
If you must use a credit card at a money order seller, expect to pay a cash advance fee (usually 3 to 5 percent) plus interest starting immediately, with no grace period.

Why money order sellers block or charge extra for credit cards

When you use a credit card to buy a money order, the seller is essentially giving you cash—and your credit card company treats it as a cash advance, not a purchase. A cash advance is a loan from your card issuer, and it costs more than a regular purchase. You pay an upfront fee (typically 3 to 5 percent of the amount), and interest starts accruing immediately with no grace period. A $500 money order bought with a credit card can cost you $15 to $25 just in the cash advance fee, plus daily interest.

Because of these high costs, many money order sellers—Western Union, MoneyGram, and the U.S. Postal Service—either refuse credit cards or charge an additional fee on top of the cash advance fee your card issuer already charges. Some will accept a credit card but only for a debit card product they offer, not for a true money order. Others accept credit cards but flag the transaction as a cash advance, which means you pay both the seller's fee and your card's cash advance fee.

Using an ATM to get cash, then buying the money order

The cheapest way to buy a money order with a credit card is to withdraw cash first. Go to an ATM that accepts your card, withdraw the amount you need plus a small buffer, and then use that cash to buy the money order at any seller. You pay only the ATM fee your card charges—usually $2 to $3—rather than a cash advance fee of 3 to 5 percent. On a $500 money order, you save $10 to $22.

The catch is that ATM withdrawals are also treated as cash advances by your credit card issuer, so interest starts immediately. But because you're only paying the ATM fee and not a seller's cash advance fee on top of it, this route is still cheaper than buying the money order directly with your card. Pay off the cash advance as quickly as you can to minimize interest charges.

Sending money directly through a payment app instead

Before you buy a money order at all, ask yourself whether the person or business you're paying actually needs one. Many situations where people use money orders—paying rent, sending money to family, paying a contractor—can now be done through payment apps or bank transfers, which are faster and cheaper.

PayPal, Venmo, Square Cash, and Google Pay all let you send money from a credit card to another person or business. Some charge a fee (usually 2 to 3 percent) when you use a credit card, but that's still cheaper than a money order seller's cash advance fee plus your card's cash advance fee. If the person you're paying has a bank account, you can often send money for free or at a lower cost. Money orders are most useful when the recipient doesn't have a bank account or when you need a paper receipt for a landlord or court—in those cases, the ATM-then-cash route is your best bet.

What happens if you use a credit card directly at a money order seller

If you do use your credit card directly to buy a money order, here's what you'll pay. First, your credit card issuer charges a cash advance fee, usually 3 to 5 percent of the amount. On a $500 money order, that's $15 to $25. Second, the money order seller may charge an additional fee—Western Union and MoneyGram sometimes do, though the U.S. Postal Service typically does not. Third, interest starts accruing on the cash advance immediately at your card's cash advance rate, which is usually higher than the purchase rate. There is no grace period.

If you carry the balance for a month, the interest alone can add another $5 to $15 to the cost, depending on your card's rate. This is why the ATM route is so much cheaper: you pay only the ATM fee upfront, and if you pay it back within a few days, interest is minimal.

Checking whether your card offers balance transfers to a bank account

Some credit card issuers offer balance transfers to a checking or savings account at a lower rate than a standard cash advance. This is not common, but it's worth asking your card issuer's customer service whether they offer it. If they do, you can transfer money to your bank account, then use your debit card or a check to buy the money order. The fee is usually lower than a cash advance fee, and you may get a grace period before interest starts.

Call the number on the back of your credit card and ask whether they offer account transfers or direct deposits to a bank account. If they do, ask what the fee is and whether there's a grace period. This option works best if you have a checking account and don't need the money order immediately.

Money order alternatives that work with credit cards

If you're trying to pay someone and a money order feels like the only option, consider these alternatives that accept credit cards more easily. Certified checks from your bank work the same way a money order does—they may provide the funds—and you can often order them online and pay with a credit card without a cash advance fee. Wire transfers through your bank also work, though they cost $15 to $30 and require a bank account. For paying rent or a contractor, ask whether they accept credit card payments directly, or whether a payment app like PayPal or Square works for them.

For sending money to family or friends, Venmo, PayPal, and Square Cash are faster and cheaper than a money order, and they all accept credit cards. The fee is usually 2 to 3 percent when you use a credit card, but that's still less than the combined cost of a cash advance fee plus interest.

Frequently Asked Questions

Can I buy a money order with a credit card at Walmart or CVS?

Walmart and CVS both sell money orders, but they treat credit card purchases as cash advances. Walmart charges a cash advance fee on top of the money order fee, and CVS does the same. Your best option is to use an ATM to withdraw cash first, then buy the money order with that cash. You'll pay only the ATM fee, not the cash advance fee.

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

A cash advance itself doesn't hurt your score, but it does increase your credit utilization—the amount of available credit you're using. If you're already using a high percentage of your credit limit, a cash advance can lower your score slightly. Paying it off quickly minimizes the impact.

What's the difference between a money order and a cashier's check?

Both may provide the funds, but a cashier's check is issued by a bank and costs $10 to $15. A money order is issued by a seller like Western Union or the post office and costs $1 to $5. Cashier's checks are larger amounts and more formal; money orders are for smaller payments. You can order a cashier's check online and pay with a credit card without a cash advance fee at many banks.

Can I use a prepaid card to buy a money order instead?

Yes. If you have a prepaid card, you can load it with money and use it to buy a money order without triggering a cash advance fee. Prepaid cards are treated as debit cards, not credit cards, so sellers don't charge the same fees. This works if you have access to a prepaid card or can load one quickly.

Is it ever worth paying the cash advance fee to buy a money order with a credit card?

Only if you're earning rewards on the purchase that exceed the fee, or if you're in a true emergency and have no other way to get cash. For most situations, the ATM route costs less and is worth the extra step.