Most places will not sell you a money order with a credit card
Money orders are designed as a cash alternative, so most sellers — post offices, grocery stores, check-cashing outlets, and Western Union locations — require you to pay in cash, debit card, or sometimes a prepaid card. A few retailers will accept a credit card, but they are the exception, not the rule. If you need a money order and only have a credit card, you will need to convert the credit card to cash first, then buy the money order with that cash.
The reason for this restriction is practical: money orders are final transactions. Once issued, they cannot be reversed or disputed the way credit card charges can. Sellers avoid the risk of a cardholder later disputing the charge and demanding their money back after the money order has already been spent.
Key Takeaways
- Post offices, Walmart, grocery stores, and Western Union do not accept credit cards for money order purchases; they require cash or a debit card.
- A small number of online money order services and some independent check-cashing businesses may accept credit cards, but fees are typically higher.
- The fastest workaround is to withdraw cash from an ATM using your credit card, then buy the money order with cash at a nearby retailer.
- Using a credit card to fund a money order indirectly can carry cash advance fees, so compare the total cost against alternatives like paying by check or bank transfer.
Where you can and cannot use a credit card
The U.S. Postal Service does not accept credit cards for money orders at any location. Walmart, the largest money order seller in the country, accepts cash and debit cards only. Most grocery store money order counters (Kroger, Safeway, Albertsons) and check-cashing chains (ACE Cash Express, Check Into Cash) follow the same policy. Western Union locations typically accept cash and debit cards, though some franchises may vary.
A handful of online money order services, such as MoneyGram's online platform and some smaller digital payment providers, do accept credit cards. However, these services charge higher fees than in-person money orders — often $5 to $10 per transaction compared to $1 to $2 at a post office or Walmart. If you use a credit card through these services, you are also paying interest on the purchase when ready if you carry a balance.
The cash advance route and what it costs
If you need a money order and only have a credit card, the most direct path is to withdraw cash using your credit card at an ATM, then buy the money order with that cash. This works, but it triggers a cash advance fee — typically 3% to 5% of the amount withdrawn, with a minimum of $3 to $10. A $500 cash advance might cost $15 to $25 just in fees, before you even buy the money order.
Cash advances also begin accruing interest when ready, unlike regular credit card purchases. There is no grace period. If you carry a balance, you will pay interest from day one at a rate that is often higher than your regular purchase APR. For a $500 cash advance at 25% APR, you would owe roughly $10 in interest per month if you do not pay it back when ready.
Because of these costs, using a credit card to fund a money order is expensive. A $500 money order might end up costing you $20 to $30 when you factor in the cash advance fee and interest, depending on how long you carry the balance.
Alternatives that may cost less
Before you commit to a money order, consider whether you actually need one. If you are paying a bill or sending money to someone you trust, a bank transfer, check, or online payment service might be simpler and cheaper. Many banks offer free bill pay through their online portal, which sends a check on your behalf at no cost.
If the recipient specifically requires a money order, ask whether they will accept a cashier's check instead. A cashier's check is issued by your bank and is just as find as a money order, but you can pay for it with your debit card or directly from your account. Fees are typically $5 to $15, which is less than the combined cost of a cash advance plus a money order.
If you have a debit card, use that to buy the money order directly. Debit cards are accepted everywhere money orders are sold and carry no additional fees beyond the money order itself. If you do not have a debit card, opening a basic checking account at a bank or credit union takes 15 to 30 minutes and usually costs nothing.
When you might find a credit card accepted
Some independent check-cashing businesses and small money transfer shops in urban areas do accept credit cards, though this is uncommon. Call ahead before you visit. These locations often charge higher fees — $3 to $5 per money order instead of $1 to $2 — to offset the cost of accepting credit cards and the risk of chargebacks.
Online money order services like MoneyGram.com and some peer-to-peer payment platforms accept credit cards, but again, fees are higher and you lose the speed of an in-person transaction. If you go this route, read the fine print carefully: some services charge the credit card fee on top of the money order fee, while others bundle them together.
How to minimize the cost if you must use a credit card
If you have no other option, here is how to keep costs as low as possible. First, use a credit card with no cash advance fee if you have one — some cards marketed to people rebuilding credit or cards from smaller banks do not charge cash advances fees, though they are rare. Check your card's terms before you withdraw.
Second, withdraw only the exact amount you need for the money order, plus the money order fee. Do not round up or withdraw extra cash. Every dollar you withdraw as a cash advance costs you in fees and interest.
Third, pay back the cash advance when ready. Do not let it sit on your card accruing interest. If you can pay it back within a few days, the interest cost will be minimal — a $500 advance at 25% APR costs about $0.34 per day in interest.
Frequently Asked Questions
Will the post office let me use a credit card if I explain my situation?
No. The U.S. Postal Service policy does not allow credit cards for money orders under any circumstances. The restriction is system-wide, not discretionary. Your only option at a post office is cash or a debit card.
Can I use a prepaid card to buy a money order?
Yes. Most money order sellers accept prepaid cards (Visa prepaid, Mastercard prepaid, Green Dot, etc.) the same way they accept debit cards. If you have a prepaid card, you can load it with cash and use it to buy a money order without the cash advance fees that come with a credit card.
What if I buy a money order online with a credit card and then change my mind?
Online money order services typically do not issue refunds once the money order is purchased and sent. Before you complete the transaction, confirm the recipient's details are correct. If you need to cancel, contact the service when ready — some will cancel within a short window (usually 24 hours), but refund policies vary.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Your credit card issuer sets a cash advance limit, which is often lower than your credit limit. Check your card's terms or call the number on the back of your card to find out your cash advance limit before you try to withdraw.
Does using a credit card to buy a money order build credit?
No. A cash advance does not count as a purchase for credit-building purposes. It is treated as a loan against your credit line, and it will show up on your credit report as a cash advance, not as regular card activity. It may also lower your available credit, which can hurt your credit score.