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

Most credit cards won't let you buy money orders, and the few that do charge fees that make it expensive

You cannot buy a money order with a credit card at most places that sell them — post offices, grocery stores, and check-cashing shops typically accept only cash or debit cards. A small number of money order sellers, like some Western Union locations, may accept credit cards, but they charge a separate fee on top of the money order cost itself, which can run 3 to 5 percent of the amount you're sending. Even when it's technically possible, using a credit card to buy a money order usually costs more than paying another way.

The reason most sellers won't take credit cards is that money orders are already a low-margin product — the seller makes only a small amount per transaction. Adding credit card processing fees would eat into that profit. For you, it also creates a problem: if you're using a credit card to buy a money order, you're essentially taking a cash advance, which most card issuers treat differently than a regular purchase. That means higher interest rates and immediate fees, even if you pay the balance off quickly.

Key Takeaways

• The U.S. Postal Service, Walmart, and most grocery stores do not accept credit cards for money orders — only cash or debit cards.
• Western Union and some MoneyGram locations may accept credit cards but charge an additional processing fee of 3 to 5 percent on top of the money order fee.
• Credit card issuers often treat money order purchases as cash advances, which carry higher interest rates and immediate fees that start accruing right away.
• If you need to send money but don't have cash, a peer-to-peer payment app or bank transfer is usually cheaper and faster than a credit card money order.

Why credit card companies treat money orders differently

When you buy a money order with a credit card, your card issuer sees it as a cash advance, not a regular purchase. A cash advance is when you use your credit card to get actual cash or a cash-like product. The issuer charges you for this immediately — typically 3 to 5 percent of the amount, with a minimum fee of $5 to $10. That fee appears on your statement right away.

The interest rate on a cash advance is also higher than your regular purchase rate. While a regular purchase might have an APR (annual percentage rate) of 15 to 20 percent, a cash advance can be 25 to 30 percent or higher. Unlike regular purchases, the interest starts accruing the moment you make the transaction — there is no grace period. If you buy a $500 money order on your credit card, you're paying the cash advance fee immediately plus interest that begins accumulating that same day.

Your card issuer knows this because the merchant code that money order sellers use signals a cash-like transaction. Even if the seller accepts your card, the issuer will still treat it as a cash advance on your bill.

Which money order sellers accept credit cards

Western Union and MoneyGram are the most common places where you might be able to use a credit card. Both operate through agent locations — independent businesses like grocery stores, pharmacies, and check-cashing shops that are licensed to sell their services. Some of these agent locations accept credit cards, but not all. If a location does accept your card, they will charge you a credit card processing fee on top of the money order fee itself.

The processing fee varies by location and by the amount you're sending. A $500 money order might cost $2 to $3 in fees normally, but add a 3 to 5 percent credit card fee and you're paying an extra $15 to $25. You would need to call ahead or ask at the counter before you go, because policies differ by location.

The U.S. Postal Service does not accept credit cards for money orders at any branch. Walmart and most grocery store money order counters also do not accept credit cards. Check-cashing shops vary — some accept them, most do not. Your best bet is to call the specific location before you go.

Cheaper ways to send money if you don't have cash

If you need to send money but don't have cash on hand, a peer-to-peer payment app is almost always cheaper and faster than buying a money order with a credit card. Apps like Venmo, PayPal, Square Cash, and Zelle let you send money directly from your bank account or debit card to another person's account. There is no fee for standard transfers between individuals, and the money usually arrives within one to three business days.

A bank wire transfer is another option if you need to send money to someone who doesn't have a payment app. You go to your bank, provide the recipient's account and routing number, and the bank sends the money electronically. Wire transfers cost $15 to $30 depending on your bank, but they're faster than a money order — usually same-day or next-day delivery. For large amounts, a wire transfer is often cheaper than the combined cost of a credit card money order plus all the fees.

If the person you're sending money to specifically needs a money order (because they don't have a bank account, for example), ask if they can accept a cashier's check instead. You can get a cashier's check from your bank using your debit card or by withdrawing cash, and it serves the same purpose as a money order but is more secure.

What happens if you use a credit card for a money order anyway

If you do manage to buy a money order with a credit card, the charges will show up on your statement as a cash advance. You'll see the money order amount, the cash advance fee, and then interest charges starting to accrue immediately. If your card has a $500 limit and you buy a $400 money order, you've now used $400 plus the fee — potentially $420 or more — leaving you with very little available credit.

The interest will keep building every day until you pay off the balance. Even if you pay the full amount back within a week, you'll still owe interest for those seven days at the higher cash advance rate. Over time, this adds up. A $500 money order with a 5 percent fee ($25) plus 30 days of interest at 28 percent APR costs you roughly $37 in fees and interest alone — compared to $2 to $3 if you had paid with cash or a debit card.

When a money order actually makes sense

Money orders are useful when you need to send money to someone you don't know well or who doesn't have a bank account, because they're safer than cash and can't be reversed like a check. They're also useful if you need a paper trail for a landlord or utility company. But the payment method you use to buy the money order matters.

If you have a debit card, use that. If you have cash, use that. If you have access to a bank account, use a bank transfer or cashier's check instead. A credit card should be your last resort because of the cash advance fees and interest rates. The only time a credit card makes sense is if you're in a situation where you have no other way to access funds and you can pay off the balance immediately — which is rare.

Frequently Asked Questions

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

No. Walmart's money order service accepts cash and debit cards only. You'll need to use one of those payment methods at the customer service desk.

Does using a credit card to buy a money order hurt my credit score?

A single money order purchase won't directly damage your score, but it does count as a cash advance, which increases your credit utilization ratio. If you're using a large portion of your available credit, that can lower your score temporarily. Paying it off quickly helps minimize the impact.

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

Both are secure ways to send money, but a cashier's check comes from your bank and is larger amounts (usually up to $10,000 or more). A money order is smaller (typically capped at $1,000) and sold at many retail locations. Cashier's checks are more formal and take longer to get, but they're more secure for large amounts.

If Western Union accepts my credit card, should I use it?

Only if you have no other option. The credit card fee (3 to 5 percent) plus the cash advance fee from your card issuer means you're paying significantly more than you would with cash or a debit card. A bank transfer or peer-to-peer app is usually cheaper and faster.

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

Some prepaid cards may avoid the cash advance fee if they're structured as debit cards rather than credit cards. Check your prepaid card's terms, but most prepaid cards work like debit cards and won't trigger cash advance fees. Call the card issuer to confirm before you buy the money order.