You can buy a money order with a credit card, but most sellers treat it as a cash advance
Most places that sell money orders — post offices, grocery stores, check-cashing shops, Western Union locations — will accept your credit card. However, your credit card company will likely classify the purchase as a cash advance, not a regular purchase. This matters because cash advances carry higher fees and interest rates than normal credit card charges.
A cash advance fee is typically 3% to 5% of the amount you're withdrawing, charged when ready. Interest starts accruing right away, with no grace period like you get on regular purchases. If you're buying a $500 money order with a cash advance, you might pay $15 to $25 in fees alone, plus interest from day one.
Some credit card companies block cash advances entirely, or set a lower limit on how much you can take as a cash advance compared to your overall credit limit. Before you go to buy the money order, call your card issuer to confirm they allow cash advances and what the fee will be.
Key Takeaways
- Money order purchases with a credit card are treated as cash advances by most card issuers, which means you pay a fee (usually 3% to 5%) and interest starts when ready.
- Post offices, grocery stores, Walmart, Western Union, and check-cashing shops all sell money orders and accept credit cards, though the cash advance classification applies at most of them.
- Your credit card company may have a separate, lower limit on cash advances than your overall credit limit, so confirm the amount you can withdraw before you go.
- Debit cards, bank transfers, and cash are cheaper alternatives if you have access to them, because they avoid the cash advance fee entirely.
Where to buy a money order with your credit card
Post offices are the most widely available option. Every USPS location sells money orders, accepts credit cards, and charges a flat fee of $1.45 for amounts up to $500 or $1.95 for amounts from $500.01 to $1,000. This is the seller's fee, separate from whatever your credit card company charges for the cash advance.
Grocery stores and pharmacies with money order services — including Walmart, Target, and most supermarket chains — also accept credit cards. Their fees are usually lower than the post office, ranging from 50 cents to $2 depending on the amount and location. Call ahead to confirm the specific store near you sells them and accepts credit cards.
Western Union and check-cashing shops like MoneyGram, ACE Cash Express, and Check Into Cash sell money orders and take credit cards. Fees vary widely by location and amount, so ask before you buy. These outlets often have longer hours than post offices, which can be useful if you need a money order outside normal business hours.
What happens when you pay with a credit card
When you hand over your credit card to buy a money order, the seller's payment processor asks your card issuer whether to treat it as a regular purchase or a cash advance. Most card issuers automatically classify money order purchases as cash advances because they are considered a way to obtain cash or cash-like value.
Your card issuer charges the cash advance fee to your account when ready. This fee does not count toward your rewards or cashback — you get no points or benefits on a cash advance. The fee appears on your next statement as a separate line item.
Interest on the cash advance begins accruing the day you make the purchase. Unlike regular credit card purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances start charging interest right away. The interest rate on cash advances is often higher than your regular purchase APR — sometimes 2% to 3% higher.
Check your credit card's cash advance limit before you go
Your credit card has two separate limits: your overall credit limit and your cash advance limit. The cash advance limit is usually much lower — often 20% to 50% of your total credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000.
Call the customer service number on the back of your card and ask what your cash advance limit is. This prevents you from arriving at the store, trying to buy a money order, and being declined. You can also log into your online account or mobile app — most card issuers display the cash advance limit in the account details section.
Some card issuers allow you to request a higher cash advance limit, though this is not may provide. If you need to buy a large money order and your limit is too low, ask whether the limit can be raised before you attempt the purchase.
Cheaper ways to send money or pay bills
If you have a debit card, use it instead of a credit card. Debit card transactions are not classified as cash advances, so you avoid the fee and the when ready interest charges. The money comes straight from your bank account, and the seller processes it as a regular debit transaction.
If you have a bank account, ask whether your bank offers bill pay or money transfer services. Many banks let you send money directly to another person's account or pay a bill from your checking account for free or a small flat fee — much cheaper than a money order plus a cash advance fee.
ACH transfers (automated clearing house transfers) through your bank are free or very low cost and work for most bill payments. Peer-to-peer payment apps like Venmo, PayPal, or Cash App are free for standard transfers and reach most people. A money order makes sense only when the recipient specifically requires one or when you need a paper trail that these digital methods don't provide.
What to bring when you buy a money order
Bring your credit card and a valid government-issued photo ID. Most sellers require ID to issue a money order, regardless of payment method. A driver's license, passport, or state ID card all work.
Know the exact amount you want to send. Money orders are issued for a specific amount and cannot be altered once issued. If you buy a $250 money order and later need to send $300, you'll have to buy another money order for the difference.
Have the recipient's name and address ready if you're filling out the money order on the spot. Some sellers pre-fill this information for you; others hand you a blank form. Knowing the details in advance speeds up the process.
Frequently Asked Questions
Will my credit card company block the money order purchase?
Some card issuers block cash advances entirely, especially if your account is new or has had fraud issues. Call your card issuer before you go to the store. If they do allow cash advances, the transaction should go through unless you've hit your cash advance limit or your overall credit limit.
Can I avoid the cash advance fee by telling the seller to process it as a regular purchase?
No. The card issuer, not the seller, decides whether to classify a money order purchase as a cash advance. The seller has no control over this classification. Your card issuer's system automatically flags money order transactions as cash advances based on the merchant code.
What if I buy a money order and then don't use it?
You still owe the cash advance fee and interest to your credit card company. The money order itself can usually be refunded or exchanged at the place you bought it, but the credit card charges remain. Refund policies vary — some sellers refund the money order fee, others don't — so ask before you buy.
Is there a limit to how much I can spend on a money order?
Individual money orders are usually capped at $1,000. If you need to send more than $1,000, you can buy multiple money orders. Your credit card's cash advance limit applies to the total amount across all cash advances in a billing period, not per transaction.
Does buying a money order with a credit card hurt my credit score?
A single money order purchase won't significantly damage your score, but it does increase your credit utilization (the percentage of your available credit you're using). If you use a large portion of your cash advance limit, it may lower your score slightly. The effect is temporary and recovers once you pay down the balance.