Most credit card issuers will not let you buy a money order with their card, and the few that do charge it as a cash advance
You cannot walk into most places that sell money orders — the post office, Walmart, Western Union, check-cashing stores — and hand over a credit card. These retailers treat money order purchases the same way they treat ATM withdrawals: as a cash advance, not a regular purchase. Your card issuer will charge you a cash advance fee (usually 3 to 5 percent of the amount) plus start charging interest when ready, even if you normally have a grace period on purchases.
A few credit card issuers have changed this in recent years, but it depends entirely on which card you hold and which retailer you use. There is no universal rule. The practical result is that you should assume you cannot use your credit card for a money order unless you call your card issuer first and confirm they allow it at that specific location.
Key Takeaways
- Most retailers code money order purchases as cash advances, which means you pay a fee and interest starts accruing when ready.
- A small number of credit card issuers have stopped treating money orders as cash advances, but this varies by card and by retailer.
- The fastest way to know whether your card will work is to call your card issuer's customer service line before you go to the store.
- Debit cards, prepaid cards, and bank accounts are the most reliable ways to buy a money order without fees or interest charges.
Why credit cards are coded as cash advances for money orders
Money orders are treated as cash-like instruments by payment networks and retailers. When you buy a money order, you are converting credit into a physical or digital document that can be handed to someone else — similar to withdrawing cash. Credit card networks and issuers view this as a cash advance rather than a purchase, because the money order itself has no merchant involved who would pay a processing fee.
This matters because cash advances carry different terms than regular purchases. You pay an upfront fee (a percentage of the amount, not a flat dollar amount), and interest accrues from the day you make the transaction — there is no grace period. If you buy a $500 money order on a card with a 4 percent cash advance fee and a 22 percent APR, you pay $20 when ready plus interest that starts accumulating the next day.
Which card issuers allow money order purchases without cash advance fees
Some major issuers have changed their policies in recent years, but the list is short and the rules are specific. American Express, for example, does not code money orders as cash advances at certain retailers like Walmart and CVS, though this can vary by card type and location. Discover has made similar changes at select locations. However, these exceptions are not may provide, and they may not explore everywhere.
The safest approach is to contact your card issuer directly before you attempt a purchase. Call the number on the back of your card and ask whether money orders are treated as cash advances at the specific retailer where you plan to buy one. Get a confirmation number or note the date and time of the call in case there is a dispute later.
Alternatives that avoid cash advance fees entirely
If your credit card will charge a cash advance fee, you have several options that cost nothing. A debit card linked to your bank account works at any money order retailer and is treated as a regular transaction with no fees or interest. Prepaid cards (like Visa or Mastercard prepaid options) work the same way. If you do not have either, you can visit your bank or credit union and ask to withdraw cash, then use that cash to buy the money order.
If you are trying to avoid using cash or a debit card for security reasons, some retailers now offer digital money orders or money transfer services through their apps or websites. Walmart, for example, offers money transfers through its app that can be sent to another person's bank account or picked up in cash. These services vary by location and by retailer, so check what is available where you live.
When a credit card cash advance might still make sense
There are rare situations where paying the cash advance fee is worth it. If you are in an emergency, have no access to a debit card or cash, and need to send money urgently, the fee might be a reasonable cost for solving the problem. If your credit card offers a 0 percent introductory APR on cash advances (uncommon, but it exists), the fee is your only cost and there is no interest.
Before you decide, do the math. A $500 money order with a 4 percent cash advance fee costs $20 plus interest. If you carry a balance on your card, that interest will compound. Compare this to the cost of other options: a payday loan, a personal loan from your bank, or asking the person you owe money to whether they can wait a few days while you gather the funds another way.
How to find out your card's specific policy
Call the customer service number on the back of your credit card. Tell the representative you want to buy a money order and ask whether that transaction will be coded as a cash advance. Ask specifically about the retailer where you plan to make the purchase, because the coding can differ by location. Write down the representative's name, the date, and what they told you.
If the representative is unsure, ask to speak with someone in the fraud or transactions department who can check the merchant code for that specific retailer. Some card issuers have internal systems that show how different merchants are coded, and a supervisor may have access to more detailed information than a front-line representative.
What happens if you use your credit card and it is coded as a cash advance
The transaction will go through, but you will see the cash advance fee appear on your next statement. The fee is usually a percentage of the amount (often 3 to 5 percent), and it is charged when ready. Interest will also start accruing on the full amount — the money order purchase plus the fee — from the day of the transaction. You will not have a grace period like you would on a regular purchase.
If you did not expect the cash advance fee and want to dispute it, contact your card issuer within 60 days of the statement date. Explain that you were not aware the transaction would be coded as a cash advance. Some issuers will reverse the fee as a one-time courtesy, though they are not required to. Having that call record from before you made the purchase (where you asked about the policy) can help your case.
Frequently Asked Questions
Can I use a credit card at the post office to buy a money order?
The post office does not accept credit cards for money order purchases at all. You must use cash, a debit card, or a check. If you do not have any of these, you will need to get cash from an ATM or your bank first.
What if I use a credit card at Walmart or CVS and it gets coded as a cash advance?
You will be charged a cash advance fee (usually 3 to 5 percent) plus interest starting when ready. Contact your card issuer within 60 days if you want to dispute the fee. Some issuers will reverse it as a courtesy, but they are not required to.
Is there a difference between a money order and a money transfer?
Yes. A money order is a physical or digital document you receive and can hand to someone. A money transfer sends funds directly to another person's bank account or to a pickup location. Money transfers through apps like Walmart's or Western Union's may be easier to buy with a credit card, though you should still check your card's policy first.
Can I buy a money order with a secured credit card?
Secured credit cards follow the same rules as regular cards. Money orders are typically coded as cash advances, and you will pay a fee and interest. Call your card issuer to confirm their specific policy before you attempt a purchase.
What if I need to send money urgently and my credit card is my only option?
If you must use your credit card, calculate the total cost (cash advance fee plus interest) and compare it to alternatives like a personal loan from your bank or asking the recipient if they can wait a few days. Sometimes paying the fee is the right choice; sometimes it is not. Do the math first.