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

Most credit card companies won't let you buy money orders directly

You cannot walk into a store, hand a cashier your credit card, and buy a money order the way you would buy groceries. Money order sellers—post offices, grocery stores, check-cashing shops, and convenience stores—treat money orders as cash equivalents. They will not accept credit cards for the purchase itself. Some will accept debit cards, but credit cards are almost universally declined at the point of sale.

The reason is straightforward: money orders are a way to send cash without sending actual bills. If credit card companies allowed you to buy them directly, they would be letting you convert credit into cash, which is what a cash advance does. Cash advances come with high fees and interest rates that start immediately, so card issuers restrict them. Money orders fall into the same category in their systems.

Key Takeaways

• You cannot buy a money order with a credit card at the register, but you can use a credit card to withdraw cash and then buy the money order with that cash.
• ATM cash advances on credit cards charge fees (usually 3–5% of the amount) plus interest that begins accruing right away, making this an expensive route.
• Debit cards work at most money order counters, so if you have one, using it avoids the cash advance fees entirely.
• Some credit card issuers offer balance transfers to your bank account, which you can then use to buy a money order without a cash advance fee.
• Money orders cost between $1 and $5 depending on the amount and where you buy them, so factor that into your total cost.

Using a cash advance to get money for a money order

The most direct way to use a credit card for a money order is to withdraw cash from an ATM using your credit card, then use that cash to buy the money order. This works, but it costs you. When you use a credit card at an ATM, your card issuer charges a cash advance fee—typically 3 to 5 percent of the amount you withdraw, with a minimum fee of $2 to $10. If you withdraw $200, you might pay $6 to $10 just for the withdrawal.

On top of the fee, interest starts accruing immediately on the cash advance. Unlike a regular purchase, which may have a grace period before interest kicks in, cash advances begin charging interest the day you withdraw the money. The interest rate on cash advances is usually higher than your regular purchase rate—often 2 to 3 percentage points higher. If you pay back the cash advance within a few days, the interest charge will be small, but it is still there.

To use this method: find an ATM that accepts your credit card (your card issuer's ATM network is usually free, but out-of-network ATMs may charge an additional fee), withdraw the amount you need plus the money order fee, then go to your money order seller and pay in cash.

Why a debit card is simpler if you have one

If you have a debit card linked to a bank account, use that instead. Debit cards are accepted at virtually every place that sells money orders—post offices, Walmart, grocery stores, and check-cashing shops all take them. There is no fee for using a debit card, and no interest charge. You are simply spending money that is already yours.

The only catch is that you need the money in your bank account first. If your account is empty or nearly empty, a debit card will not help. But if you have the funds available, a debit card is the cheapest and fastest way to buy a money order.

Balance transfers as an alternative to cash advances

Some credit card issuers offer balance transfers to your bank account—a feature that lets you move credit from your card directly into a checking or savings account. This is different from a cash advance. While balance transfers do charge a fee (usually 3 to 5 percent, similar to a cash advance fee), they often do not charge interest immediately. Some cards offer a promotional period where balance transfer interest is 0 percent for 6 to 12 months.

If your card offers this feature and you have a promotional rate, a balance transfer can be cheaper than a cash advance. You transfer money to your bank account, then use your debit card or write a check to buy the money order. Check your card's terms or call the issuer to see if balance transfers are available and what the current promotional rate is.

When you might want to use a credit card indirectly

Most people should not buy money orders with a credit card because of the fees and interest. But there are situations where it makes sense. If you are trying to build credit history and your card issuer reports cash advances to the credit bureaus, a small cash advance shows you can borrow and repay responsibly. If you pay it back within a few days, the interest charge is minimal.

Another scenario: you need a money order urgently and your bank account is empty, but you have available credit. A cash advance fee of $5 to $10 might be worth it if the alternative is missing a payment deadline or paying a late fee to a landlord or utility company. In that case, the cash advance becomes the lesser cost.

Money order costs and where to buy them

Money orders themselves cost money, separate from any credit card fees. The price depends on the amount and where you buy them. The U.S. Postal Service charges up to $1.45 for money orders under $500 and up to $1.95 for orders from $500 to $1,000. Walmart charges $0.70 to $0.88 depending on the amount. Check-cashing shops and grocery stores typically charge $1 to $3. Convenience stores may charge more.

If you are using a credit card cash advance, add the money order fee to your total cost. A $200 cash advance with a $6 fee plus a $1 money order fee costs you $7 in fees alone, before interest. That is worth knowing before you commit to this route.

Frequently Asked Questions

Can I buy a money order online with a credit card?

Some online money order services accept credit cards, but they are not the same as traditional money orders. They charge higher fees and may not be accepted everywhere a standard money order is. Stick with buying money orders in person at a post office, grocery store, or check-cashing shop if you need a standard money order.

What if my credit card is declined at the money order counter?

The cashier will not attempt to process it again. Go to an ATM, withdraw cash using your credit card, and return to buy the money order with cash. Or use a debit card if you have one. Some stores may also let you use a different payment method if you ask.

Is there a limit to how much I can withdraw as a cash advance?

Yes. Your card issuer sets a cash advance limit, which is often lower than your credit limit. Call your card issuer or check your online account to find out your cash advance limit before you go to the ATM.

Will a cash advance hurt my credit score?

A single cash advance will not damage your score, but it does increase your credit utilization—the amount of available credit you are using. High utilization can lower your score temporarily. Paying back the cash advance quickly brings your utilization back down.

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

Yes, most prepaid cards work like debit cards at money order counters. Verify with the prepaid card issuer that your card is accepted, since policies vary by card type and seller.