Using a Credit Card to Buy a Money Order: What Works and What Doesn't
Most credit card companies won't let you buy a money order with a credit card
You cannot use a credit card directly at most places that sell money orders. When you walk into a grocery store, post office, or check-cashing store to buy a money order, the cashier will ask for cash or a debit card — not a credit card. The payment systems these businesses use simply don't accept credit cards for money order purchases.
This is different from other things you can buy at those same locations. You can use a credit card to buy groceries or pay for services, but money orders are treated as a separate category. The reason comes down to how money orders work: they're a way to send money to someone else, and credit card companies see this as a cash advance or a way to move money around rather than a purchase of goods or services.
If you need a money order and only have a credit card, you have a few workarounds, but each one costs you money or involves extra steps.
Key Takeaways
- Credit cards are not accepted at the point of sale when you buy a money order at a post office, grocery store, or check-cashing location.
- You can withdraw cash from an ATM using your credit card and then use that cash to buy a money order, but this counts as a cash advance and comes with higher fees and interest rates.
- Using a debit card or paying with cash directly is the cheapest way to buy a money order if you have either option available.
- Some banks and credit unions let you order money orders online or by phone and pay with a credit card, though this is less common and may have limits on the amount.
- Money order fees typically range from $1 to $5 depending on the amount and where you buy it, and a cash advance fee on top of that makes the total cost significantly higher.
Getting cash from an ATM to buy a money order
The most direct workaround is to use your credit card at an ATM to withdraw cash, then use that cash to buy the money order. This works, but it's expensive. When you withdraw cash using a credit card, your card company charges you a cash advance fee — usually 3 to 5 percent of the amount you withdraw, with a minimum fee of $5 to $10. You also start paying interest on that cash immediately, often at a higher rate than you pay on regular purchases.
Let's say you need $500 for a money order. A 5 percent cash advance fee would cost you $25, plus interest starting right away. Then you'd pay another $1 to $5 for the money order itself. Your total cost could easily be $30 to $35 just to move $500 from your credit card to someone else's hands. With a debit card or cash, you'd pay only the $1 to $5 money order fee.
This route only makes sense if you have no other way to pay and you're willing to accept the cost.
Ordering money orders online or by phone from your bank
Some banks and credit unions offer money orders through their own systems, and you can order them online or by phone and pay with your credit card. This is less common than it used to be, and availability depends entirely on your bank. Call your bank's customer service line and ask whether they sell money orders and whether you can pay with a credit card.
If your bank does offer this service, the process is usually straightforward: you provide the recipient's name and address, the amount, and your payment method. The bank mails the money order to you or sometimes directly to the recipient. The fee is typically lower than what you'd pay at a retail location — often $5 to $10 — but you have to wait for it to arrive by mail, which takes several business days.
This option works best if you're not in a hurry and you want to avoid the cash advance fees that come with using an ATM.
Why money order sellers don't accept credit cards
Money order transactions are treated differently from regular purchases because of how credit card networks and money transfer regulations work. When you buy a money order, you're not buying a product — you're essentially moving money from one place to another. Credit card companies classify this as a cash-like transaction, which puts it in a different category from buying groceries or paying for a service.
Money order sellers also have their own reasons for not accepting credit cards. They operate on thin profit margins, and credit card processing fees eat into those margins. A $2 money order fee doesn't leave much room for a 3 percent credit card processing fee. Additionally, money order sellers want to reduce fraud risk, and cash or debit transactions are easier to verify and harder to dispute than credit card transactions.
Comparing the cost of different payment methods
| Payment Method | Money Order Fee | Additional Fees | Total Cost for $500 Order |
|---|---|---|---|
| Cash or debit card | $1–$5 | None | $1–$5 |
| Credit card via ATM cash advance | $1–$5 | $15–$25 cash advance fee | $16–$30 (plus interest) |
| Credit card via bank order | $5–$10 | None | $5–$10 |
The table above shows why using a credit card is the most expensive option in most cases. If you have access to cash or a debit card, that's always the cheapest route. If your bank offers money orders by phone or online, that's your second-best option. Using an ATM to get cash should be your last resort because of the cash advance fees and interest charges.
Alternatives to money orders if you have a credit card
Before you go through the trouble of getting a money order with a credit card, consider whether you actually need one. Money orders are useful for specific situations — paying rent to a landlord who doesn't accept cards, sending money to someone you don't trust with your bank account, or paying a bill at a location that doesn't take cards. But if the person or business you're paying accepts other methods, you might have easier options.
If you're paying a person, you could use a peer-to-peer payment app like Venmo, PayPal, or Cash App, all of which accept credit cards. If you're paying a business, many now accept credit cards online or over the phone. If you need to send money by mail and the recipient won't take a card payment, ask whether they accept a personal check instead — that's free if you have checks, and you can write it directly from your credit card account if your bank offers that service.
Money orders are still necessary in some situations, but they're becoming less common as more businesses accept digital payments.
Frequently Asked Questions
Can I use a credit card at Walmart or the grocery store to buy a money order?
No. Walmart, grocery stores, and other retail locations that sell money orders do not accept credit cards for that specific transaction. You'll need to pay with cash or a debit card. Some locations may accept credit cards for other purchases at the same register, but the money order itself must be paid for separately with cash or debit.
Will using my credit card at an ATM to get cash for a money order hurt my credit score?
A cash advance itself doesn't directly hurt your credit score, but it does increase your credit utilization — the amount of available credit you're using — which can lower your score slightly. The bigger issue is the cost: cash advances charge high fees and interest rates, so it's an expensive way to get money.
Is there a limit to how much I can withdraw as a cash advance on my credit card?
Yes. Most credit cards set a cash advance limit that's lower than your overall credit limit — often 20 to 50 percent of your total available credit. Check your card's terms or call your card company to find out your specific limit. This limit is separate from your regular purchase limit.
Can I buy a money order online with a credit card?
Some banks and credit unions offer online money order ordering with credit card payment, but this is not available everywhere. Western Union and MoneyGram, which are major money order providers, do not sell traditional money orders online with credit cards, though they offer similar money transfer services that do accept credit cards. Contact your bank first to see if they offer this service.
What's the difference between a money order and a wire transfer if I'm using a credit card?
A wire transfer moves money directly from one bank account to another and is faster, but it's also more expensive — typically $15 to $50 depending on your bank. A money order is a physical document that the recipient must deposit or cash, and it costs $1 to $5. If you're paying someone who can accept either, a wire transfer might be faster, but a money order is cheaper if you can pay for it with cash or debit.