Using a Credit Card to Buy a Money Order

Yes, you can use a credit card to buy a money order, but it comes with costs and limits

Most places that sell money orders — banks, grocery stores, post offices, and check-cashing shops — will take a credit card. However, the transaction often costs more than paying cash, and your credit card company may treat it as a cash advance rather than a regular purchase. A cash advance typically means a higher interest rate, an upfront fee, and interest that starts accruing immediately instead of after a grace period.

Whether using a credit card for a money order makes sense depends on why you need one and what your card's terms are. If you're building credit history or earning rewards, the benefits might outweigh the extra cost. If you're just trying to pay a bill, paying cash is almost always cheaper.

Key Takeaways

• Credit card companies often charge a cash advance fee (usually 3 to 5 percent) when you buy a money order, on top of the money order fee itself.
• Cash advances typically carry a higher interest rate than regular purchases and start charging interest immediately with no grace period.
• Banks, the U.S. Postal Service, Walmart, grocery stores, and check-cashing shops all accept credit cards for money orders, though policies vary by location.
• If you're using a rewards credit card, the points you earn might offset some of the extra fees, but only if you pay the balance in full immediately.
• Debit cards and prepaid cards are usually treated as debit transactions rather than cash advances, making them cheaper alternatives if you have access to them.

How credit card companies treat money order purchases

When you swipe a credit card at a money order counter, the transaction may be coded as a cash advance rather than a regular purchase. This distinction matters because cash advances come with their own fee structure and interest rate. Your card's regular purchase APR (annual percentage rate) might be 18 percent, but the cash advance APR could be 25 percent or higher.

The cash advance fee is usually charged upfront as a percentage of the amount — typically 3 to 5 percent. So if you buy a $500 money order, you might pay $15 to $25 just for using your credit card, plus the money order fee itself (usually $1 to $3). That's $16 to $28 in fees before interest even starts.

Not all credit card companies code money order purchases the same way. Some treat them as regular purchases if you buy them at a bank or post office, but as cash advances if you buy them at a convenience store or check-cashing shop. The only way to know for certain is to call your card issuer before you buy.

Where you can buy a money order with a credit card

Most major places that sell money orders accept credit cards, though individual locations may have their own policies. The U.S. Postal Service accepts credit cards at post offices nationwide. Banks that issue money orders — usually your own bank or any bank where you have an account — typically accept their own credit cards and sometimes cards from other issuers.

Walmart and other large grocery chains sell money orders and accept credit cards at most locations, though some individual stores may not. Check-cashing shops and payday loan stores almost always accept credit cards, though they may charge an additional processing fee on top of the money order fee. Smaller independent check-cashing shops vary widely, so it's worth calling ahead.

One important note: some places will accept your credit card but may code the transaction differently than you expect. A grocery store might process it as a regular purchase, while a check-cashing shop processes it as a cash advance. Ask the cashier or call ahead to confirm how your specific card will be treated before you complete the transaction.

When the extra cost might be worth it

Using a credit card to buy a money order makes the most sense if you're earning rewards that offset the fees. If your card gives you 2 percent cash back on all purchases and the money order fee is $2, you'd earn $10 in cash back on a $500 money order. That $10 reward would cover the money order fee and most or all of the cash advance fee — but only if you pay your credit card balance in full immediately so no interest accrues.

Building credit history is another reason some people use credit cards for money orders. If you're working to establish credit and you pay the balance in full right away, the transaction shows up on your credit report as a responsible use of available credit. However, this benefit only applies if your card issuer reports cash advances to the credit bureaus — many do not.

If you're in a situation where you have no other way to pay and you need a money order urgently, using a credit card is better than not paying at all. Just be aware of the full cost: the money order fee, the cash advance fee, and the interest that will accrue if you can't pay the balance immediately.

Cheaper alternatives to using a credit card

If you have a debit card, that's almost always the cheapest way to buy a money order. Debit transactions are not treated as cash advances, so you pay only the money order fee itself — usually $1 to $3 — with no additional percentage-based fee. The money is deducted directly from your bank account, so there's no interest to worry about.

Paying cash is the absolute cheapest option. You pay only the money order fee and nothing else. If you're trying to build credit or earn rewards, this doesn't help, but if your only goal is to send money, cash is the most cost-effective way.

If you have a prepaid card (like a Visa or Mastercard prepaid card that you load with your own money), most places treat it the same way they treat a debit card — as a regular purchase rather than a cash advance. Check with your prepaid card issuer to confirm, but this is usually a cheaper option than a credit card.

What to do before you buy a money order with a credit card

Call your credit card company before you go to buy the money order. Ask them three specific things: whether money order purchases are coded as cash advances on your card, what the cash advance fee is, and what the cash advance APR is. Write down the answers so you know exactly what you'll be charged.

Then calculate the total cost. Add the money order fee, the cash advance fee (if applicable), and estimate how much interest you'll pay if you can't pay the balance immediately. Compare that total to the cost of using a debit card or paying cash. If the credit card cost is significantly higher, use a different payment method.

If you do decide to use a credit card, pay the balance as soon as the transaction posts to your account. The longer the balance sits, the more interest you'll pay. Some people set up an automatic payment to their credit card from their bank account on the same day they buy the money order, just to make sure the balance gets paid right away.

Frequently Asked Questions

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

It can, but only if the cash advance increases your credit utilization ratio significantly or if you carry a balance and miss a payment. If you use a small amount of your available credit and pay it back immediately, the impact is minimal. If you max out your card or carry a balance, your score may drop temporarily.

Can I use a credit card to buy a money order online?

Most money order services do not offer online purchases. You have to go to a physical location — a post office, bank, or retail store — and buy the money order in person. Some banks allow you to order money orders through their online banking portal, but they still mail them to you rather than letting you pay online and pick up instantly.

What if my credit card is declined when I try to buy a money order?

This usually means your card issuer flagged the transaction as unusual or your available credit is too low. Call your card company to ask why it was declined. Some issuers decline cash advances if you've recently opened the account or if you have a history of cash advance activity. They may be able to approve it over the phone, or you may need to use a different payment method.

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

Money orders themselves have limits — most places cap them at $1,000 per order, though you can buy multiple money orders. Your credit card's cash advance limit may be lower than your regular credit limit. Check your card's terms or call your issuer to find out what your cash advance limit is before you try to buy a large money order.

Do all credit cards treat money orders as cash advances?

No. Some cards code money orders as regular purchases depending on where you buy them, while others always code them as cash advances. A few cards don't charge a cash advance fee at all, though this is rare. The only way to know for certain is to contact your card issuer directly and ask about their specific policy.