Most places won't sell you a money order with a credit card
You cannot buy a money order directly with a credit card at most retailers and banks. Money order sellers — including Western Union, MoneyGram, Walmart, the post office, and most banks — treat credit cards as cash advances rather than regular purchases. They either decline the card outright or charge you a cash advance fee on top of the money order fee, which makes the total cost much higher than paying with a debit card or cash.
The reason is straightforward: a money order is already a form of payment, so selling one with a credit card looks like you are converting credit into cash. Your credit card company charges a percentage fee (usually 3 to 5 percent) for this type of transaction, and the money order seller passes that cost to you. A $500 money order might cost you an extra $15 to $25 in fees if you use a credit card.
If you need a money order and only have a credit card available, your best option is to use the credit card to withdraw cash from an ATM first, then buy the money order with that cash. You will pay an ATM fee instead, which is usually $2 to $4 — far less than a cash advance fee.
Key Takeaways
- Western Union, MoneyGram, the post office, Walmart, and most banks will not accept credit cards for money order purchases, or they charge a cash advance fee if they do.
- A cash advance fee for a money order typically runs 3 to 5 percent of the amount, making it much more expensive than other payment methods.
- Using an ATM to withdraw cash with your credit card, then buying the money order with cash, usually costs less in fees.
- Debit cards and cash are the standard payment methods for money orders at all major retailers and financial institutions.
- Some credit unions may have different policies, so calling your specific credit union before you go is worth the time.
Where you can and cannot use a credit card for money orders
Western Union does not accept credit cards for money order purchases in most locations. If a Western Union agent does accept your card, they will process it as a cash advance and charge you the associated fee on top of the money order fee.
MoneyGram has the same policy. Credit cards are not listed as an accepted payment method on their website, and agents are instructed to decline them or process them as cash advances.
The U.S. Postal Service accepts debit cards and cash only. Credit cards are not an option at post office windows for money order purchases.
Walmart and other major retailers that sell money orders through their customer service desks will decline credit cards. They accept cash and debit cards.
Banks and credit unions vary. Most large banks (Chase, Bank of America, Wells Fargo) do not accept credit cards for money orders. Some smaller banks and credit unions may have different policies, so it is worth calling your branch directly before you go in.
Why credit card companies treat money orders as cash advances
A cash advance is any transaction that converts your credit line into cash or cash-like instruments. Money orders fall into this category because they are prepaid payment instruments — they function like cash once you have them. Your credit card company sees the transaction the same way it sees withdrawing cash from an ATM: you are taking credit and turning it into something spendable when ready.
Cash advances carry higher fees and interest rates than regular purchases. The fee is usually charged when ready and ranges from 3 to 5 percent of the amount. Interest accrues right away, often at a higher rate than your regular purchase APR. This is why a $500 money order bought with a credit card can cost you $30 to $50 more than the same money order bought with cash or a debit card.
Money order sellers do not make this distinction on their own — they follow the rules set by the credit card networks (Visa, Mastercard, American Express). The networks classify money orders under merchant category codes that trigger cash advance treatment.
Using an ATM to get cash for a money order
If you only have a credit card and need a money order, withdrawing cash from an ATM is usually the cheapest path. Use your credit card at an ATM to withdraw the amount you need, then take that cash to buy your money order.
The cost is an ATM fee, which typically ranges from $2 to $4 per withdrawal. This is much less than the 3 to 5 percent cash advance fee you would pay if the money order seller accepted your credit card. On a $500 money order, you save $10 to $46 by using an ATM first.
Keep in mind that your credit card company will still treat the ATM withdrawal as a cash advance — you will pay the cash advance fee and interest will accrue when ready. But the ATM fee is separate and usually smaller. The total cost is still lower than going directly to a money order seller with your credit card.
Debit cards and cash: the standard payment methods
Debit cards are accepted everywhere that sells money orders — Western Union, MoneyGram, the post office, Walmart, banks, and credit unions. A debit card transaction is treated as a regular purchase, not a cash advance, so you pay only the money order fee itself with no additional charges.
Cash is also accepted at all of these locations and costs nothing extra. If you have cash on hand, it is the cheapest way to buy a money order.
If you do not have a debit card or cash, the ATM route remains your best option. Some banks also allow you to transfer money from your credit card to a checking account (if you have one), then withdraw cash or use a debit card. This process takes a day or two but avoids the cash advance fee entirely.
What happens if you try to use a credit card anyway
If you walk into a Western Union, MoneyGram, post office, or Walmart and try to pay for a money order with a credit card, one of two things will happen. The agent will either decline the card and ask you to use a different payment method, or they will inform you that the transaction will be processed as a cash advance and charge you the fee.
Some agents may not mention the fee upfront, so ask before they process the transaction. Say: "Will this be charged as a cash advance?" If the answer is yes, step back and use an ATM instead. The fee is not worth it.
If you are charged a cash advance fee and believe it was unfair or unexpected, you can contact your credit card company to dispute it. They may reverse the fee if you can show that you were not informed it would be charged. Keep your receipt from the money order purchase as proof.
Alternatives if you cannot get a money order
If you need to send money and cannot buy a money order, other options exist. A cashier's check from your bank works the same way as a money order and may be available even if you only have a credit card (though you would still face the cash advance issue). Ask your bank directly.
Wire transfers through your bank allow you to send money electronically. You can set up a wire transfer with a credit card in some cases, though your bank will likely treat it as a cash advance. Call your bank to ask about their policy.
Digital payment apps like PayPal, Venmo, or Square Cash let you send money directly to another person if they have an account. These apps often accept credit cards without treating the transaction as a cash advance, though you should confirm with the app before you send.
If you are sending money to pay a bill or rent, ask the recipient whether they accept digital payments or bank transfers instead of a money order. Many landlords, utilities, and service providers now accept these methods.
Frequently Asked Questions
Can I buy a money order with a prepaid credit card?
A prepaid credit card is still a credit card, so most money order sellers will decline it or process it as a cash advance. Some prepaid cards are linked to a bank account and function more like debit cards — if yours is, ask the card issuer whether it will be treated as a debit card or credit card at the point of sale. If it is treated as a credit card, use an ATM to withdraw cash instead.
What if my credit card has a PIN? Can I use it like a debit card?
Having a PIN does not change how the transaction is classified. A credit card with a PIN is still a credit card, and money order sellers will still decline it or charge a cash advance fee. The PIN is for security, not for changing the payment type.
Do credit unions have different rules for money orders?
Some credit unions do accept credit cards for money orders, while others follow the same rules as banks and decline them. Call your credit union directly and ask their policy before you go in. If they do accept credit cards, ask whether they charge a cash advance fee.
Is it cheaper to buy a money order online instead of in person?
You cannot buy a traditional money order online. Western Union and MoneyGram offer online ordering, but you still have to pick up the money order in person at a physical location, and you still cannot pay with a credit card. Online bill pay through your bank is a free alternative if the recipient accepts bank transfers.
What if I use my credit card to pay someone else to buy the money order for me?
This does not avoid the fee — you would still be using credit to fund a money order purchase. The fee depends on who is buying it and how the transaction is classified, not on who is holding the card at the time. It is simpler and cheaper to use an ATM yourself.