You can buy a money order with a credit card, but most sellers treat it like a cash advance
Yes, you can use a credit card to buy a money order at most locations — but your card issuer will likely charge you a cash advance fee and a higher interest rate than you pay on regular purchases. The money order itself costs $1 to $5 depending on where you buy it, but the real cost comes from how your credit card company categorizes the transaction.
When you swipe your card at a Western Union, MoneyGram, grocery store, or post office to buy a money order, the merchant codes it as a cash advance rather than a regular purchase. That means your card issuer charges you a fee (usually 3 to 5 percent of the amount) starting when ready — there is no grace period like there is for regular purchases. Interest accrues right away at a rate that is often 5 to 10 percentage points higher than your standard APR.
If you need a money order, a debit card or cash is almost always cheaper. But if you have no other option, understanding the fees upfront helps you decide whether the money order is worth the cost.
Key Takeaways
- Credit card companies treat money order purchases as cash advances, which means you pay a fee (usually 3 to 5 percent) plus a higher interest rate when ready.
- A $500 money order bought with a credit card can cost you $15 to $25 in fees alone, before any interest charges.
- Debit cards, bank transfers, and cash do not trigger cash advance fees and are cheaper ways to pay for a money order.
- Some credit card issuers may decline the transaction altogether if they flag it as a cash advance, so call your card company first if you are unsure.
Where you can buy a money order with a credit card
Most major money order sellers accept credit cards as payment. Western Union and MoneyGram locations (found in grocery stores, pharmacies, and check-cashing shops) take credit cards at the counter. The U.S. Postal Service accepts credit cards for money orders at post office windows. Walmart, Target, and many grocery store customer service desks also sell money orders and take cards.
The location itself does not care whether you use a credit card — the problem is your card issuer. Some issuers block money order purchases outright because they recognize the merchant code. Others allow the transaction but hit you with the cash advance fee. Before you go to buy one, call your card company's customer service number on the back of your card and ask whether they treat money order purchases as cash advances. If they do, ask what the fee percentage is.
How the cash advance fee works
A cash advance fee is a percentage of the amount you are withdrawing or, in this case, the amount of the money order you are buying. If your card charges a 5 percent cash advance fee and you buy a $500 money order, you owe $25 in fees when ready — not after a billing cycle, but right away. That $25 is added to your credit card balance.
On top of the fee, interest starts accruing the moment the transaction posts. If your regular APR is 18 percent but your cash advance APR is 25 percent, you are paying that higher rate on the $500 plus the $25 fee. Over a month, that adds another $10 or more in interest. If you carry the balance for several months, the interest cost can exceed the original fee.
The only way to avoid the interest is to pay off the full balance — the money order amount plus the fee — before your next billing cycle closes. Many people do not realize this and end up carrying the balance, which makes the money order far more expensive than it appeared at the register.
Cheaper ways to pay for a money order
If you have a debit card linked to a bank account, use that instead. Debit card transactions are not treated as cash advances, so you pay only the money order fee itself — usually $1 to $3 — with no additional charges. The money comes straight from your account, and there is no interest.
A bank transfer or wire transfer is another option if the person receiving the money order can accept a direct deposit or online transfer instead. Many banks offer free or low-cost transfers to other banks, and some allow you to send money directly to another person's account. This skips the money order entirely and costs nothing or very little.
If you must use a credit card, ask the money order seller whether they accept payment plans or whether you can split the purchase across multiple smaller money orders. Some locations will let you buy several smaller orders instead of one large one, which can sometimes reduce the total fee — though this is rare and worth asking about only if the fee is very high.
What happens if your card issuer declines the transaction
Some credit card companies automatically block money order purchases because they recognize the merchant code and want to prevent cash advance fees from surprising customers. If your card is declined at the register, it does not mean you did anything wrong — it means your issuer has flagged that type of transaction.
Call your card company and ask them to temporarily lift the block so you can complete the purchase. They may ask why you need the money order, and they may warn you about the cash advance fee. Once you explain, they can usually remove the block for a single transaction. Some issuers will let you do this over the phone right away; others may take a few minutes to process the request.
If your issuer refuses to lift the block, you will need to use a different payment method — a debit card, cash, or a check if the recipient accepts it.
How to minimize the cost if you must use a credit card
First, call your card issuer and confirm the cash advance fee percentage and the cash advance APR before you buy the money order. Knowing the exact cost helps you decide whether it is worth it.
Second, buy only the amount you need. If you need to send $300, do not buy a $500 money order to have extra on hand. Every dollar you put into the money order triggers the fee and interest.
Third, pay off the balance when ready after the transaction posts to your account. Do not wait for the bill to arrive. Log into your card's online portal or app, check that the money order purchase has posted, and pay the full amount right away. This stops interest from accruing and keeps your total cost at just the cash advance fee.
Fourth, ask the recipient whether they can accept payment another way. If they are willing to take a bank transfer, Venmo, PayPal, or a check instead of a money order, you avoid the credit card fees entirely. Many people ask for money orders out of habit, but they are often open to alternatives if you ask.
When a money order makes sense despite the credit card fees
A money order bought with a credit card is expensive, but there are situations where it is still the right choice. If you need to send money to someone who does not have a bank account or does not trust digital payments, a money order may be the only option they will accept. If you are building credit and need to show a payment history, using your credit card (even with fees) adds to your card activity and payment record.
If you are in an emergency and have no debit card, no cash, and no access to a bank transfer, a money order with a credit card is better than missing a important date or payment. The fees are real, but they are a known cost you can calculate upfront. Just make sure you understand the total before you commit.
Frequently Asked Questions
Will my credit card company let me buy a money order?
Most will, but some block the transaction automatically. Call the number on the back of your card and ask. If they block it, ask them to lift the block for a single transaction. They usually can do this in a few minutes.
What is the difference between a cash advance fee and a regular purchase fee?
A cash advance fee is charged when ready and is usually 3 to 5 percent of the amount. A regular purchase has no upfront fee, and interest only accrues if you carry a balance past your grace period. Money orders are coded as cash advances, so you pay the fee right away.
Can I avoid the cash advance fee by buying a money order at a specific store?
No. The fee is determined by your credit card issuer, not the seller. Western Union, MoneyGram, the post office, and grocery stores all code the transaction the same way to your card company. The fee applies regardless of where you buy it.
Is it better to use a credit card or a debit card for a money order?
A debit card is almost always better. Debit transactions are not treated as cash advances, so you pay only the money order fee itself with no additional charges or interest. Use a debit card if you have one.
What if I cannot pay off the credit card balance right away?
The interest will add up quickly. A $500 money order with a 5 percent fee and 25 percent cash advance APR costs $25 in fees plus roughly $10 in interest per month if you carry the balance. If you cannot pay it off within a few days, use a debit card or cash instead.